President Aliyev Unveils Azerbaijan's Five-Year Green Energy Targets

President Ilham Aliyev in a recent interview provided insights on how Azerbaijan leverages its rich fossil fuel reserves for enhancing the national green energy agenda.

Speaking to Chinese CGTN TV channel in January, President Aliyev said revenues from fossil fuels had been invested in green technologies and green energy in the country with good investment opportunities proposed for investors.

“Our immediate target by 2027 is to have two gigawatts of solar and wind electricity, and by 2030, six gigawatts, which will be kind of a revolution in the energy mix in Azerbaijan,” he stated.

President Aliyev elaborated that with Azerbaijan advancing its green agenda, including Azerbaijan-Kazakhstan-Uzbekistan agreement to build green energy cable underneath the Caspian Sea, Chinese companies are now shifting from green technology providers to investors in Azerbaijan.

“We will connect Central Asia with Azerbaijan and potentially China through an energy cable. Another project will stretch the cable from Azerbaijan to Europe under the Black Sea. Azerbaijan is playing a very active role in green transition,” the president said.

President Aliyev highlighted Azerbaijan's vast wind and solar potential and stressed the need for markets, technology, and cooperation for its effective utilization.

In November 2024, during COP29 global climate summit, Azerbaijan, Kazakhstan, and Uzbekistan signed a strategic partnership agreement for green energy development and transmission.

The agreement provides for the joint construction of a clean energy cable underneath the Caspian Sea for exporting renewable energy to European markets. The cable will be plugged into another cable line traversing the Black Sea’s seabed.

President Aliyev, at the time, described it as a historic event that would pave the way for broader collaboration in green energy sphere.

In September 2024, Azerbaijan, Georgia, Hungary, and Romania embarked on a significant initiative to install a power transmission line beneath the Black Sea. The launch of a joint venture marked the first milestone in this collective journey.

This joint project aims to supply renewable energy to the European Union from the reserves in the Caucasus’ east. Initially approved by the leaders of the four nations in 2022, the initiative gained traction following Russia’s full-scale invasion of Ukraine in February 2022, which underscored the EU’s dependence on Russian energy and led to soaring prices. In response, the 27-member bloc has intensified its efforts to reduce reliance on Russian energy sources.

The proposed cable will connect Azerbaijan to EU member states Romania and Hungary via Georgia bolstering energy security and reducing electricity costs for consumers.

Romanian Energy Minister Sebastian Burduja praised the project as a strategic solution for both Romania and the EU.

“If you analyze Europe’s energy landscape in recent months, it’s evident that the eastern flank has been facing significantly high prices. This is largely due to a lack of diversification,” Euronews quoted Burduja as saying.

Azerbaijan's total electricity production reached 25,932.5 million kWh from January-November 2024, according to the preliminary data from the Ministry of Energy.

Electricity generation in thermal power plants accounted for 22,351.9 million kWh, while hydropower plants generated 2,780.9 million kWh. Other sources contributed 799.7 million kWh of electricity during the period.

In 2024, Azerbaijan marked a significant achievement in energy from green and renewable sources. Renewable energy production increased over 80 percent year-on-year, rising by 1,617.8 million kWh to 3,580.6 million kWh in January-November last year putting green energy’s stake at 13.8 percent in Azerbaijan's total electricity production.

Solar and wind power plants produced 540.1 million kWh and 48.6 million kWh, respectively, in the reporting period. The waste-to-energy plant that processes solid household waste produced 211.0 million kWh.

Azerbaijan’s technical potential for renewable energy is estimated at 135 gigawatts onshore and 157 gigawatts offshore. By 2030, Baku plans to leverage renewable sources through solar, wind, and hydropower stations with a combined capacity of approximately six gigawatts. To this end, contracts and memorandums of understanding (MoUs) for 10 gigawatts of renewable energy projects have been signed.

This will enable Azerbaijan to achieve a 30 percent share of green energy in power generation within the next five years and reduce greenhouse gas emissions by 35 percent by 2030 and 40 percent by 2050.

The economic potential of green energy sources in Azerbaijan stands at 27 gigawatts, which includes 3 gigawatts of wind energy, 23 gigawatts of solar energy, 380 megawatts of bioenergy, and 520 megawatts of mountain river potential, according to the Energy Ministry.