Azerbaijan pivots from oil giant to green energy exporter

The shift is anchored by the Azerbaijan Scaling-Up Renewable Energy Project, supported by a $173.5 million World Bank loan approved in March 2025. This capital aims to modernize power transmission and catalyze private investment, specifically targeting the expansion of onshore wind capacity. The government’s updated climate action plan targets a 40% reduction in greenhouse gas emissions from 1990 levels, with renewable sources potentially providing up to 38% of the nation's power by 2030.

Infrastructure development is moving rapidly. The 240-megawatt Khizi-Absheron Wind Farm, commissioned in January 2026, serves as a proof of concept for large-scale independent projects. Simultaneously, the Ministry of Energy has designated over 700 square kilometers of the Caspian Sea for offshore wind development, drawing interest from international partners including China Energy Engineering Corporation and BP. Beyond domestic production, Azerbaijan is positioning itself as a transit state. Through the proposed Caspian-Black Sea-Europe corridor and other high-voltage transmission routes, the country aims to transport 10 GW of renewable electricity to European markets, effectively replicating its historic role as an energy hub for a new, decarbonized era.