Azerbaijan will host the COP29 in November 2024, which presents an opportunity to showcase the country’s leadership in renewable energy and climate change, the Investment Climate Statements of the U.S. Department of State said in its report on Azerbaijan.
According to the report, Azerbaijan has great potential for wind and solar energy development, both onshore and offshore.
“The government of Azerbaijan aims for renewables to be 30% of its total installed electricity capacity by 2030. The focus is on solar, wind, and hydropower plants, with foreign investors playing a crucial role in project implementation," the report reads.
Azerbaijan inaugurated a 230 megawatt solar power plant in October 2023 and is actively working toward building a green energy corridor from the Caspian Sea to Europe.
"Competition in the renewable energy sector could drive positive developments, including increased investment, innovation, and socioeconomic benefit,” the report reads.
Azerbaijan's traditional energy sector
As for traditional energy sector, the U.S. State Department recalls that in June 2022, Azerbaijan and the European Commission signed a memorandum of understanding to double Azerbaijan’s gas exports to Europe by 2027. It was noted that by 2027, Azerbaijan plans to increase its gas transportation through the Trans Adriatic Pipeline (TAP) to 20 billion cubic meters per annum. Azerbaijan supplied 11.8 billion cubic meters of gas to Europe in 2023.
"Europe buys almost half of Azerbaijani gas exports,” the report reads.
Diversification of economy
Washington pointed out that while the oil and gas sector has historically attracted the largest share of foreign investment, the Azerbaijani government has targeted four non-oil sectors to diversify the economy:
- agriculture,
- tourism,
- information and communications technology,
- transportation/logistics.
“The Azerbaijani government and third-party analysts expect Azerbaijan to continue to leverage its geographically significant position on the multimodal east-west Trans-Caspian International Transport Route, also known as the Middle Corridor. The Middle Corridor links the containerized rail freight networks of China and the European Union through Central Asia, the Caucasus, Türkiye, and Eastern Europe,” the U.S. State Department concluded.
