President Ilham Aliyev has announced that Azerbaijan is poised to significantly enhance its renewable energy capacity by 2030, with the goal of nearly doubling its total installed power generation through solar, wind, and hydropower initiatives.

Source: CaspianNews

During the 11th Ministerial Meeting of the Southern Gas Corridor Advisory Council and the 3rd Ministerial Meeting of the Green Energy Advisory Council last week, President Aliyev reaffirmed Azerbaijan’s dedication to clean energy. He underscored the strategic aim of conserving natural gas for export by transitioning domestic electricity generation to renewables.

Agreements for three solar energy projects were signed in Baku at the aforementioned meetings. The Energy Ministry of Azerbaijan and Nobel Energy, part of NEQSOL Holding, finalized two key agreements: an Investment Agreement for the 50 MW "Ufug" (Horizon) Solar PV Project in Jabrayil and an Implementation Agreement for a 30 MW Solar Power Plant in Nakhchivan, furthering the country's clean energy objectives. Additionally, an Investment Agreement was signed with Clean Energy Jabrayil for the 50 MW "Shams" Solar PV Project.

Today, already signed contracts with our investors on solar and wind power stations will allow us to have, by 2030, 6 gigawatts of solar and wind energy. That will save a lot of natural gas, which we currently use to produce electricity domestically, and all of that will be available for export, adding that these and other initiatives in Azerbaijan will help create a renewable energy capacity of 6.5 gigawatts by 2030, nearly doubling the country’s current installed energy capacity of over 8 gigawatts.

^{President Aliyev}

Since 2020, Azerbaijan has actively collaborated with international companies to tap into its vast green energy resources. Prominent energy firms such as Masdar, ACWA Power, BP, Total Energies, Nobel Energy, Fortescue Future Industries, China Gezhouba Group Overseas Investment, A-Z Czech Engineering, and Baltech have entered into contracts or memorandums of understanding (MoUs) to invest in renewable energy projects.

Saudi Arabia’s ACWA Power plans to launch the 240 MW Khizi-Absheron Wind Power Plant in Azerbaijan by November 2025.

In October 2023, UAE’s Masdar inaugurated the Garadagh Solar Power Plant, the largest solar facility in the Caspian and CIS regions, with a capacity of 230 MW. Masdar is also working on several other projects: a 315 MW solar plant in Neftchala, a 445 MW solar plant in Bilasuvar, and a 240 MW wind plant in the Absheron-Garadagh district.

In March 2024, Nobel Energy, part of NEQSOL Holding, signed an MoU with the Energy Ministry for a solar power plant in the Jabrayil district.

In 2023, Nobel Energy signed an MoU with Azerbaijan’s Ministry of Energy to establish a 400 MW solar power plant in Nakhchivan, utilizing advanced solar technology to produce clean and reliable electricity. This project aims to harness Nakhchivan's extensive green energy potential to supply both Türkiye and the domestic market.

A key priority for Azerbaijan is fostering green energy development in the liberated areas of East Zangezur and Karabakh. Since 2020, over 30 small hydropower stations have been constructed in these regions, with a total installed capacity of 270 MW. President Aliyev stated that the number of facilities is expected to more than double in five years, reaching 500 MW with an additional 30 stations.

In 2024, Azerbaijan achieved significant milestones in renewable energy. From January to November, green energy production surged by 1,617.8 million kWh, representing a year-on-year increase of over 80 percent, bringing total output to 3,580.6 million kWh. During this period, renewables comprised 13.8 percent of the country’s electricity generation.

Last year, solar and wind power plants generated 540.1 million kWh and 48.6 million kWh, respectively, while waste-to-energy initiatives contributed an additional 211.0 million kWh from solid household waste.

Azerbaijan's technical renewable energy potential is estimated at 135 gigawatts onshore and 157 gigawatts offshore. By 2030, Baku plans to implement 6.5 gigawatts of combined solar, wind, and hydropower capacity. Contracts and MoUs have already been signed for 10 gigawatts of renewable projects.

These initiatives are designed to elevate the share of renewables in power generation to 30 percent within five years and reduce greenhouse gas emissions by 35 percent by 2030 and 40 percent by 2050.

According to the Energy Ministry, Azerbaijan’s economic renewable energy potential is estimated at 27 gigawatts, which includes three gigawatts from wind energy, 23 gigawatts from solar energy, 380 megawatts from bioenergy, and 520 megawatts from mountain river capacity.