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Green technology

Azerbaijan's Green Energy Transformation Gains Momentum

Strategic Insights

— 2 min read

Azerbaijan is rapidly advancing its green energy agenda, shifting from fossil fuel dependency toward a more diversified and sustainable energy future. The country's renewable energy output showed mixed results in the first seven months of 2025, with solar power generation experiencing a 13.1% increase year-on-year, while wind power saw a temporary dip. Hydropower continued to serve as the bedrock of Azerbaijan's renewable mix, with generation from hydro plants rising by 12.5% to 2.1 billion kWh. The government plans to invest $2.7 billion by 2027, aiming to raise the share of renewables in the national energy mix to 33.7% by 2027, with targets of 38% by 2030 and 42.5% by 2035.

Key Takeaways:

  • Azerbaijan's renewable energy output showed mixed results in the first seven months of 2025, with solar power generation increasing by 13.1% year-on-year and wind power seeing a temporary dip of 18.6%.
  • Hydropower continued to serve as the bedrock of Azerbaijan's renewable mix, with generation from hydro plants rising by 12.5% to 2.1 billion kWh.
  • The government plans to invest $2.7 billion by 2027 to support the development of renewable energy, aiming to raise the share of renewables in the national energy mix to 33.7% by 2027.
  • Azerbaijan aims to launch at least 10 additional large-scale projects, contributing an estimated 6 GW in new capacity, with around 4 GW allocated for energy exports.
  • The country is working with Georgia, Romania, and Hungary to develop the Caspian-Black Sea-Europe Green Energy Corridor, a 1 GW high-voltage direct current (HVDC) interconnector to transmit green electricity directly to European grids.
  • Azerbaijan's green energy transformation includes key projects such as the 240 MW wind power plant, three solar power plants totaling 200 MW, and a pioneering 100 MW floating solar power plant.

Statistics:

  • Azerbaijan's renewable energy output for the first seven months of 2025: 3.4 billion kWh (334.2 million kWh solar, 27.5 million kWh wind, 2.1 billion kWh hydropower)
  • Solar power generation increase year-on-year: 13.1%
  • Wind power decrease year-on-year: 18.6%
  • Hydropower generation increase year-on-year: 12.5% to 2.1 billion kWh
  • Total value of production and services in Azerbaijan's electricity, gas, and steam sectors (January-July 2025): ?1.9954 billion
  • Water and waste management services output (January-July 2025): ?370.9 million
  • Government investment in renewable energy by 2027: $2.7 billion
  • Target share of renewables in the national energy mix by 2027: 33.7%
  • Target share of renewables in the national energy mix by 2030: 38%
  • Target share of renewables in the national energy mix by 2035: 42.5%

Sources:

  • "Azerbaijan to Commission Ten New Solar and Wind Power Plants by 2027" (Energy Minister Parviz Shahbazov, Baku Energy Forum)
  • "Azerbaijan's Renewable Energy Output Shows Mixed Results in First Seven Months of 2025" (State Statistics Committee)
  • "Azerbaijan Invests $2.7 Billion in Renewable Energy by 2027" (Azerbaijan government)
  • "Azerbaijan to Launch At Least 10 Additional Large-Scale Renewable Energy Projects by 2030" (Azerbaijan government)
  • "Azerbaijan Works with Georgia, Romania, and Hungary to Develop Caspian-Black Sea-Europe Green Energy Corridor" (Azerbaijan government)

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