The Caucasus and Central Asia (CCA) region faces mounting pressure to accelerate its energy transition, as the COP29 climate summit in Azerbaijan highlights the region's limited progress in adopting renewable energy. According to a recent report by the Global Energy Monitor (GEM), fossil fuel projects vastly outpace renewable energy initiatives across the region.
GEM's findings show that fossil-based energy projects under development total 24 gigawatts (GW), significantly overshadowing the 3.5 GW of wind and solar projects currently in progress. Across eight countries—including Azerbaijan, Armenia, and Kazakhstan—fossil fuels dominate the energy mix, with oil, gas, and coal maintaining a firm hold on electricity generation.
In Kazakhstan, coal powers 67% of the country's electricity, reflecting its heavy reliance on fossil fuels. Meanwhile, Azerbaijan's gas-centric energy system generates over 90% of its electricity, leaving little room for renewables.
While Kazakhstan leads the region in renewable energy advancements, doubling its wind and solar capacity through innovative auction mechanisms, the progress remains insufficient to achieve substantial decarbonization. Uzbekistan, the second-largest player in the renewables space, has drawn international investment for solar projects but still struggles with systemic challenges, including outdated infrastructure and seasonal water shortages that hamper hydropower reliability.
Azerbaijan's renewable energy ambitions are particularly modest, with plans to add just 2 GW by 2027 to reach a 30% share of renewables in its energy mix. Unclear timelines for additional projects raise questions about the country's ability to meet its longer-term climate commitments. Armenia and Georgia aim for high renewable energy targets by 2030, but their reliance on large hydropower projects faces criticism over environmental impacts and prolonged construction periods.
The GEM report stresses the urgent need for transformative policies and regional collaboration to align the CCA region with global climate goals. As COP29 unfolds, the next 100 days of Azerbaijan's presidency will be crucial in setting the course for a more sustainable energy future in the region.
