Economy minister: Azerbaijan emerging as regional green energy hub

Azerbaijan’s energy sector is opening new opportunities for the growth of a “green economy” thanks to major transformations in recent years, Economy Minister Mikayil Jabbarov said.

Speaking at the Milli Majlis during the plenary session on the 2026 budget package, the minister noted that eight completed and planned industrial solar and wind power plants — with a combined capacity of around 2 GW and scheduled for implementation by 2027 — will attract about $2.8 billion in foreign and domestic investment, Caliber.Az reports via local media.

This will not only contribute to the country’s economic growth but also build a foundation for the further expansion of the “green economy.”

He stressed that the signing of agreements on the establishment of green energy corridors — “Caspian Sea–Black Sea–Europe” and “Central Asia–Azerbaijan” — and the launch of work in these areas will further strengthen Azerbaijan’s position as a strategic energy hub, a reliable energy exporter and a platform for “green investment.”

The minister also highlighted Azerbaijan’s broader economic momentum, noting that the value of the country’s annual non-oil and gas exports doubled between 2019 and 2024, reaching $3.4 billion, while the range of exported goods expanded by 15% to 2,810 items.

He added that despite lower global oil and gas prices and declining production volumes, Azerbaijan’s foreign trade turnover has remained stable at around $50 billion since 2022.

According to him, the external trade balance — excluding the State Oil Fund of Azerbaijan (SOFAZ) gold and imports — recorded an average annual surplus of $16 billion between 2022 and 2024, while exports of non-oil and gas services rose by nearly 45% to exceed $6.5 billion.

He noted that state budget revenues for 2025 are 1.7 times higher than the actual figure in 2018, with non-oil and gas revenues increasing 2.2 times over the same period and related tax collections rising 2.3 times.

The share of non-oil and gas revenues grew from 40% in 2018 to 52% in the approved 2025 state budget, with the 2026 draft projecting this figure at 57%.

By Jeyhun Aghazada