Azerbaijan is gearing up to significantly increase the share of renewables in its energy sector, aiming to reach almost a third with over $2 billion in green investments, according to the country's Energy Minister.
Ahead of hosting the United Nations COP29 climate summit in November, Azerbaijan is keen to enhance its environmental credentials. Despite its significant natural gas reserves, the country is looking to diversify its energy portfolio and promote more sustainable practices.
Energy Minister Parviz Shahbazov highlighted Azerbaijan's plans to double its gas exports to Europe by 2027, alongside its commitment to increasing investments in renewables. “By 2027, in the first phase of partnership with energy companies, we are planning to realize close to 2 gigawatts of new renewable volumes, which will increase the share of renewables in installed capacity to 33%,” Shahbazov stated.
Currently, renewables account for 20.86% of Azerbaijan's installed capacity, with the share for electricity generation standing at 8.5% as of the first quarter of 2024. The minister emphasized that investments exceeding $2 billion would contribute to producing 5.3 billion kilowatt hours of electricity, saving 1.2 billion cubic meters of gas, and reducing emissions by up to 2.5 million tonnes.
Despite the push towards renewables, Shahbazov underlined Azerbaijan's continued commitment to fossil fuels. “Despite the global downtrend in fossil fuel financing and lack of long-term demand guarantees, Azerbaijan remains committed to gas supply to its partners,” he stated.
