During his speech at the event titled “Breakfast with the Leadership of Azerbaijan,” organized within the framework of the annual meeting of the World Economic Forum in Davos, Azerbaijani President Ilham Aliyev announced the country's strategic goals in the field of renewable energy. The Head of State stated that two large renewable energy power plants have already been commissioned, and a significant increase in solar and wind energy production capacity is planned over the next six years.
President Ilham Aliyev emphasized that a total capacity of 8 gigawatts in solar and wind energy is expected to be achieved by 2032. The Head of State also noted that Azerbaijan possesses significant solar and wind potential, that contracts have been signed for several projects in this area, and that work is currently underway to create energy storage capabilities.
All this once again demonstrates that, under the leadership of President Ilham Aliyev, increasing the share of renewable sources in Azerbaijan's energy strategy has become one of the priority directions.
In this regard, particular attention is drawn to the sources through which the 8-gigawatt solar and wind energy capacity target emphasized by President Ilham Aliyev will be achieved by 2032, the volume of investments required for this, its impact on the energy balance and energy security, as well as future international cooperation opportunities.
In a statement to Modern.az, Azer Badamov, Deputy Chairman of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, recalled that Azerbaijan's solar and wind energy potential has been calculated and is reported to exceed 200 gigawatts.
“157 gigawatts of this capacity are located offshore, with the remaining part onshore. Azerbaijan is currently implementing investment projects related to the creation of onshore renewable energy sources. Naturally, work is progressing rapidly. In the near future, in addition to the construction of onshore solar and wind power plants, this work will also be carried out in the Caspian Sea. Azerbaijan intends to direct a portion of the revenue obtained from fossil energy resources towards the development of the renewable energy sector. The results achieved are positive. I believe that the share of renewable energy in our energy sector will increase in the near future.”
The deputy also stated that foreign investments play a key role in the target of increasing our renewable energy production to 8 gigawatts by 2032, as well as in the creation of these production facilities:
“However, alongside this, domestic investments will also be made in the renewable energy sector. From this perspective, it is difficult to state an exact figure regarding how much investment will be attracted to this sector by 2032. But this figure will be in the order of billions of dollars.
Azerbaijan does not intend to merely satisfy domestic energy demand by developing its renewable energy sector. Today, we produce 2 gigawatts more energy than our demand. In the future, this will reach 8 gigawatts. This will also enable our country to export renewable energy to Europe. Just as Azerbaijan participates in Europe's energy security with gas today, after some time, it will contribute to strengthening Europe's energy security with renewable energy,” he noted.
The deputy chairman also added that Azerbaijan is currently cooperating with UAE's Masdar, Saudi Arabia's ACWA Power, Britain's BP, and Chinese companies in projects related to the development of the renewable energy sector:
“It is precisely thanks to foreign investments that the Garadagh Solar and Absheron-Khizi Wind power plants have been commissioned. The construction of three more power plants continues in the liberated territories. Additionally, Solar Power Plants are being built in the Neftchala and Bilasuvar districts. In the next phase, if there are initiatives from foreign partners wishing to invest in our renewable energy sector, Azerbaijan is open to investments.”
A. Badamov also drew attention to the fact that the increase in renewable energy production will allow for savings of 4-5 billion cubic meters of natural gas used for traditional energy production:
“According to the agreement signed between Azerbaijan and the European Union, Azerbaijan must export 16 billion cubic meters of gas to the EU by 2027. Our country currently exports 13 billion cubic meters of gas to the European Union. This will bring our country additional revenues from the export of 4-5 billion cubic meters of gas saved through renewable energy resources. Moreover, this will contribute to strengthening Azerbaijan's positions in Europe,” the deputy chairman concluded.
Rovshan Muradov, a member of the Milli Majlis Committee on Natural Resources, Energy, and Ecology, noted that the widespread application of renewable energy sources has been identified as one of the priority directions of the energy policy implemented under the leadership of Mr. Ilham Aliyev, President of the Republic of Azerbaijan. Furthermore, the relevant decrees of the Head of State on accelerating reforms in the energy sector and the adopted laws not only form the legal basis for liberalization in the energy market, increased competition, and the transition to green energy, but also serve as an important regulatory framework governing the legal, economic, and organizational foundations in this area, as well as support mechanisms for promoting green energy.
“In addition, within the framework of the “Socio-Economic Development Strategy of the Republic of Azerbaijan for 2022–2026,” the transition to green energy, increasing energy efficiency, and building a low-carbon economy have been identified as one of the main goals of national development.
Currently, the technical potential of green energy sources in our country is estimated at 135 GW onshore and 157 GW offshore, with an economic potential of 27 GW, including 3 GW for wind energy, 23 GW for solar energy, a bioenergy potential of 380 MW, and a mountain river potential of 520 MW.
In our country, power plants with a total capacity of 1830 MW operate using renewable energy sources. These include 65 hydropower plants with a capacity of 1444 MW, 5 wind power plants with a capacity of 64 MW, 9 solar power plants with a capacity of 278 MW, a BIO power plant with a capacity of 37 MW, and 3 hybrid power plants with a capacity of 7.3 MW. Renewable energy sources constitute approximately 19% of the total energy capacity.”
The deputy also emphasized that the implementation of green energy projects with a total capacity of over 2 gigawatts is planned in Azerbaijan by 2027:
“Power sources for solar and wind energy will be provided by the following HPPs and WPPs. Currently, the “Garadagh” Solar Power Plant has a capacity of 230 MW. This plant was built and commissioned on October 26, 2023, as a pilot project by the United Arab Emirates' “Masdar” company, with foreign investment valued at 262 million US dollars. The plant produces approximately 500 million kWh of electricity annually, which means an annual saving of 110 million cubic meters of natural gas. At the same time, the commissioning of this plant prevents the emission of 200 thousand tons of carbon dioxide into the atmosphere annually.
The "Khizi-Absheron" Wind Power Plant has a capacity of 240 MW. This plant was commissioned on January 8, 2026, by “ACWA Power,” a leading energy company from Saudi Arabia, as the project investor. “ACWA Power” also has projects with even greater potential in our country. Our country plans to implement the desalination of Caspian Sea water with the support of this company. The plant will produce 1 billion kWh of electricity annually, which means saving 220 million cubic meters of natural gas per year and preventing the emission of over 400 thousand tons of carbon dioxide into the atmosphere.
The “Shafaq” Solar Power Plant has a capacity of 240 MW. This plant is being implemented by BP. A business model called “Virtual Energy Transmission Mechanism” is planned for implementation here. The plant is projected to produce 500 million kWh of electricity annually, which means saving up to 150 million cubic meters of natural gas each year and reducing carbon dioxide emissions by 50 percent (330 thousand tons).
The “Gobustan” Solar Power Plant has a capacity of 100 MW. Since 2024, China's “Universal International Holdings Limited” company has been preparing the plant. The plant is projected to produce 260 million kWh of electricity annually, which will allow for saving 57 million cubic meters of natural gas per year and reducing carbon dioxide emissions into the atmosphere by 124 thousand tons.
The “Ufuq” and “Shams” solar power plants each have a capacity of 50 MW. These plants will be constructed in the Jabrayil district by “Nobel Energy” company based on implementation agreements signed on June 2, 2025.
Additionally, within the framework of the “Mega” project, Masdar company is constructing 2 HPPs with capacities of 445 MW in Bilasuvar district and 315 MW in Neftchala district. Over 943 thousand panels produced by China's “JA Solar” company, each with a capacity of 620-650 W, are being gradually brought to the 1400-hectare area designated for their installation. On October 2, 2025, the first solar panel was already installed at the “Bilasuvar” HPP,” R. Muradov added.
The member of the Milli Majlis noted that this volume of renewable energy production will play a significant role in our country's energy balance and in strengthening energy security:
“Thus, currently, the generation capacity of the country's energy system is approximately 10,000 megawatts, and thanks to many new renewable energy generation capacities to be created in the future, our country will be able to adequately meet the growing domestic demand and also increase its export potential. It is no coincidence that both traditional and renewable generation capacities are currently being developed in parallel in our country. Furthermore, the fact that our country possesses suitable geographical areas for renewable energy, especially the wind potential of 157 gigawatts in the Caspian basin belonging to our country, once again proves what we have stated above.”
Rovshan Muradov also stated that, against the backdrop of its solar and wind energy potential, Azerbaijan is cooperating with several countries on projects in this field, and the existing prospects give hope for positive results in the future.
“Our country cooperates with several countries and international companies to develop its solar and wind energy potential. These include the United Arab Emirates (“Masdar” company), Saudi Arabia (“ACWA POWER” company), BP, and several Western European countries such as Germany, France, the Netherlands, Spain, and Switzerland's energy companies. Negotiations are currently underway with these countries, and projects are already being discussed. There are significant projects with the UAE and Saudi Arabia.
The expansion of solar and wind energy will lead to a reduction in domestic gas consumption, an increase in export potential, and at the same time, a decrease in carbon dioxide emissions into the atmosphere, all of which will have a positive impact on both our ecology and our economy. Specifically, the commissioning of the aforementioned power plants means an annual saving of approximately 537 million cubic meters of natural gas consumed in our country and a reduction of 1 million 54 thousand tons of carbon dioxide emissions into the atmosphere,” the deputy noted.
