Energy Transition Initiatives

Azerbaijan’s Green Energy Transition Initiatives

Azerbaijan is committed to developing its renewable energy potential, which is an important part of the country’s plan to reduce greenhouse gas emissions by 40% by 2050. The country intends to increase renewable power capacity to 30% by 2030 and diversify its existing energy system to become a leader in green energy. Azerbaijan is committed to leading by example and will update its national targets in its next 1.5-aligned Nationally Determined Contribution.

Azerbaijan's wind energy potential holds immense promise, with both onshore and offshore resources presenting significant opportunities for sustainable power generation.

The country boasts 3 GW of economic potential of onshore wind, as well as an impressive 157 GW of technical capacity of offshore wind.

Significant strides have already been made in making this potential a reality, with notable projects in partnership with companies such as ACWA Power and Masdar already underway.

Hydropower accounts for about 10% of the country’s domestic annual electricity generation.

About 25% of the country’s freshwater resources are concentrated in the Karabakh and East Zangazur regions, making hydropower a critical part of achieving the 2050 Net Zero target in these designated Green Energy Zones.

The crown jewel of Azerbaijan's hydropower infrastructure is the Mingachevir Hydroelectric Power Plant, which boasts an impressive installed capacity of 424 MW.

Azerbaijan’s economic potential of solar energy is 23 GW. The region's favourable climate, boasting 2,400-3,200 hours of sunshine annually, gives Azerbaijan strong potential as a solar energy producer.

In October, the 230 MW Garadagh Solar PV Plant was inaugurated. Several other projects are underway, and the country continues to sign agreements with stakeholders interested in its solar energy.
As Azerbaijan expands its solar energy infrastructure, the country is working with partners from the public and private sector, including businesses and multilateral development banks – stakeholders central to negotiations at COP29.

With the support of the European Bank for Reconstruction and Development (EBRD), Azerbaijan began exploring low carbon hydrogen production in February 2023.

Azerbaijan is actively working to bring its vision of a dynamic green hydrogen sector to life. The collaboration agreements inked with global private sector actors will enable the development of around 10 GW of renewable energy in the medium term that can contribute to the production of hydrogen.