Azerbaijan strengthens its position as clean energy hub through green corridors - SOCAR

BAKU, Azerbaijan, January 8. Azerbaijan is
strengthening its position as a future hub for cross-border clean
energy transmission through the development of so-called green
energy corridors, Rovshan Najaf, President of the State Oil Company
of the Azerbaijan Republic (SOCAR), said in an article published on
the website of the World Economic Forum, Trend reports.

The article notes that the combined capacity of three green
energy corridors, the Caspian–Black Sea–Europe corridor, the
Azerbaijan–Türkiye–Europe corridor, and the Central
Asia–Azerbaijan–Europe corridor, could reach up to ten gigawatts of
renewable energy, significantly reinforcing Azerbaijan’s role in
the transnational transmission of clean energy.

According to the publication, global energy supply increased by
13% from 2014 through 2023, driven by steadily growing demand.

“Industrialization, population growth, and economic development
will further increase demand over the next twenty-five years,
particularly from developing countries and Asian economies outside
the Organisation for Economic Co-operation and Development (OECD).
This growth has also led to a 77% rise in global carbon dioxide
emissions since 1990, underscoring the urgent need for coordinated
action. In response, more than 140 countries have adopted carbon
neutrality targets, covering the majority of global emissions. A
practical approach includes rapidly scaling up clean energy and
energy efficiency while reducing the environmental footprint of the
existing system. Since climate change knows no borders, collective
cooperation is essential for a just transition,” the article
states.

Against this backdrop of global uncertainty and geopolitical
tension, Najaf said energy security and climate resilience have
emerged as central pillars of Azerbaijan’s national strategy,
shaping a transition that blends renewable energy development with
system reliability and economic stability.

“The country has incorporated the goal of ‘Clean Environment and
Green Growth’ into the Azerbaijan 2030 strategy, with a strong
focus on renewable energy development. The Energy Efficiency Fund
supports initiatives that reduce environmental impact and improve
sector efficiency by offering loans, grants, and subsidies. While
continuing to rely on its hydrocarbon sector, Azerbaijan is
simultaneously advancing renewable energy development. As a net
electricity exporter since 2007, the country has strengthened
energy security by modernizing generation facilities and
reinforcing transmission networks. By 2023, electricity generation
reached 29.3 billion kilowatt-hours, representing a 25.5% increase
compared to the previous decade,” the article notes.

The publication also recalls that under the Strategic Roadmap
adopted in 2016, the government committed to diversifying the
energy mix and expanding power generation from renewable
sources.

Najaf noted that Azerbaijan’s technical potential for renewable
energy is substantial, estimated at 135 gigawatts onshore and 157
gigawatts offshore.

As part of its long-term ambitions, Azerbaijan aims to lift the
share of renewables in its electricity generation mix to nearly 40%
by 2030.

The article outlines significant progress achieved over the past
5 years in deploying renewable energy projects. These include the
Garadagh solar power plant with a capacity of 230 megawatts, the
largest solar facility in the Caspian region, commissioned in 2023;
hydropower projects in Karabakh and East Zangezur, where 32
stations with a combined capacity of 270 megawatts have been
commissioned, with plans to expand to 500 megawatts; the
Khizi–Absheron wind power plant with a capacity of 240 megawatts,
being developed by ACWA Power and SOCAR, with full capacity
expected by the end of 2025; the Bilasuvar and Neftchala solar
projects with capacities of 445 megawatts and 315 megawatts,
respectively, which reached financial close at COP 29 and are
expected to generate more than 1.7 billion kilowatt-hours annually;
and the Shafag solar power plant with a capacity of 240 megawatts,
the first industrial-scale solar project in the liberated
territories, with an expected annual output of 500 million
kilowatt-hours.

Data from the State Statistics Committee of Azerbaijan shows a
remarkable surge in renewable energy over the past five years, with
electricity production from hydropower plants rising 2.8-fold and
solar generation expanding more than 12.6-fold.

“National transition strategies can deliver regional
decarbonization benefits beyond national borders. Given its
strategic geographic location, existing transmission
infrastructure, and established energy partnerships, Azerbaijan is
uniquely positioned as a bridge between the Caspian region, Central
Asia, and Europe,” the article states.

The article adds that Azerbaijan is actively developing three
main green energy corridors: Caspian–Black Sea–Europe,
Azerbaijan–Türkiye–Europe, and Central Asia–Azerbaijan–Europe.

In 2022, the signing in Bucharest of the Strategic Partnership
Agreement on the development and transmission of green energy
between Azerbaijan, Georgia, Romania, and Hungary marked a
significant step toward opening a green energy corridor to Europe,
the article concludes.

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