Kazakh media: Azerbaijan accelerates its transition to green energy

The Kazakh international news agency Kazinform has published an article titled "Greening petrodollars: How resource countries are developing clean energy", highlighting Azerbaijan’s rapid transition to green energy.

“Azerbaijan, traditionally recognized for its vast oil and gas reserves, is now rapidly advancing its transition to green energy. The country is leveraging oil export revenues to establish a sustainable energy infrastructure that aligns with global decarbonization goals,” the article said, Caliber.Az reports per local media.

The piece notes that as the world accelerates its shift toward green energy, numerous countries are adopting unique strategies to integrate sustainable practices and reduce their reliance on fossil fuels. Oil and gas-producing nations such as Azerbaijan, Norway, the United Arab Emirates, Brazil, and Kazakhstan are implementing distinct approaches shaped by their geographic, economic, and political contexts.

The article emphasizes that since gaining independence, Azerbaijan has amassed considerable wealth through oil exports, particularly via the State Oil Fund of Azerbaijan (SOFAZ).

As of 2023, SOFAZ has accumulated over $53 billion, primarily derived from oil and gas revenues. Initially allocated for infrastructure development and social programs, a portion of these funds is now being directed toward green energy projects to diversify the country's energy mix.

Azerbaijan is increasingly channelling its oil wealth into renewable energy initiatives. Official figures indicate that between $1.5 billion and $2 billion has already been invested in renewable energy projects, including wind, solar, and hydropower. The aim is to elevate the share of renewables in the national energy mix to 30 per cent by 2030, supported by these oil-financed investments.

Significant progress has been made in large-scale renewable energy projects, such as the 240MW Khizi-Absheron wind farm and the 230MW Garadagh solar power plant, both expected to play a crucial role in reducing the country’s dependence on fossil fuels.

In its green energy efforts, Azerbaijan is collaborating with companies such as Masdar (UAE) and ACWA Power (Saudi Arabia) to leverage their expertise in renewable energy projects. The country plans to construct large solar and wind farms with a total capacity of 7GW, including 2.5GW from ACWA Power’s wind initiatives.

Azerbaijan is also working on plans to export green energy across the Caspian Sea to Europe as part of the Green Energy Corridor. Energy projects valued at $2.8 billion are slated for implementation by 2027, including the construction of eight solar and wind farms.

Furthermore, agreements have been reached with Kazakhstan and Uzbekistan to establish a joint venture for this corridor. The Black Sea cable project, aimed at transmitting green energy between Azerbaijan, Georgia, and Europe, is currently undergoing a feasibility study, with primary results expected to be presented at COP29 in Baku.

The article highlights that COP29, the upcoming UN climate change conference, represents a significant opportunity for Azerbaijan. By showcasing its green energy projects and commitment to renewable energy, Azerbaijan aims to attract new international investments and strengthen cooperation with global financial institutions.

By Vafa Guliyeva