US State Department highlights Azerbaijan's leadership in alternative energy

Azerbaijan is set to host COP29 in November 2024, providing an opportunity to showcase the country's leadership in renewable energy and climate change initiatives.

This statement comes from a US State Department report on the investment climate in Azerbaijan, as per Caliber.Az.

The report emphasizes Azerbaijan's significant potential for developing wind and solar energy, both onshore and offshore.

"The Government of Azerbaijan aims for renewables to be 30 per cent of its total installed electricity capacity by 2030. The focus is on solar, wind, and hydropower plants, with foreign investors playing a crucial role in project implementation. Azerbaijan inaugurated a 230-megawatt solar power plant in October 2023 and is actively working toward building a green energy corridor from the Caspian Sea to Europe. Competition in the renewable energy sector could drive positive developments, including increased investment, innovation, and socioeconomic benefits," it notes.

Regarding traditional energy, the State Department highlighted a June 2022 memorandum of understanding between Azerbaijan and the European Commission to double Azerbaijani gas exports to Europe by 2027.

"By 2027, Azerbaijan plans to increase its gas transportation through the Trans Adriatic Pipeline (TAP) to 20 billion cubic meters per annum. Azerbaijan supplied 11.8 billion cubic meters of gas to Europe in 2023. Europe buys almost half of Azerbaijani gas exports," the report says.

While the oil and gas sector has historically attracted the largest share of foreign investment, the Azerbaijani government is focusing on diversifying the economy by targeting four non-oil sectors: agriculture, tourism, information and communication technology (ICT), and transport/logistics.

"The Azerbaijani government and third-party analysts expect Azerbaijan to continue to leverage its geographically significant position on the multimodal east-west Trans-Caspian International Transport Route, also known as the Middle Corridor, an alternative trade route that avoids Russia. The Middle Corridor links the containerized rail freight networks of China and the European Union through Central Asia, the Caucasus, Türkiye, and Eastern Europe. Azerbaijan is investing in its rail system and has expanded its port facilities to handle the increased cargo flow," the report also adds.