Azerbaijan’s Renewable Energy Boom Is Transforming Its Power Sector
Published · 1 min read
Azerbaijan, traditionally a major oil and gas producer, is rapidly expanding its renewable energy sector.
As host of COP29, the government set an ambitious climate target and encouraged other nations to follow suit. Renewable energy now accounts for 20% of Azerbaijan's total electricity production, up from 13.4% in 2025. Plans include increasing the share of renewables to 33.3% by 2027 and developing 8 GW of capacity by 2032. The country aims to avoid using 840 million cubic meters of natural gas through renewable energy projects, reducing carbon emissions. Azerbaijan is attracting significant foreign investment, with projects from the UAE, Saudi Arabia, and China, and plans to invest $2.6 billion in renewable energy and grid development by 2027.