BAKU, Azerbaijan, January 10. As global concerns over energy security, climate change, and sustainable development rise to the top of government agendas, Azerbaijan is emerging as one of the countries in the region pursuing an ambitious and consistent policy in the field of green energy, political analyst Azer Garayev told Trend.
Reducing carbon emissions and shifting toward alternative and renewable energy sources has become not only an environmental choice but also an economic and political necessity, he said, noting that Azerbaijan has steadily positioned itself within this global transition.
“Although Azerbaijan’s energy strategy was long based on oil and gas resources, this model has been gradually diversified in recent years. Under the leadership of President Ilham Aliyev, the country has preserved its strong position in traditional energy while simultaneously taking systematic and long-term steps in renewable energy,” Garayev said. He cited the opening ceremony of the Khizi–Absheron Wind Power Plant at the Gulustan Palace in Baku on January 8, 2026, as a clear example of this policy.
The analyst recalled that President Ilham Aliyev has repeatedly emphasized that the modernization, upgrading, and development of Azerbaijan’s energy system has been one of the country’s key priorities in recent years.
“This modernization has not been limited to upgrading existing generation capacities. Moreover, the integration of renewable energy sources into the national grid has expanded.” According to the president, over the past 20 years, the country’s generation capacity has increased nearly threefold compared with all previous periods, reaching approximately 10,000 megawatts.
With a capacity of 240 megawatts, the Khizi–Absheron Wind Power Plant is one of the largest renewable energy projects ever implemented in Azerbaijan. The project was carried out by Saudi Arabia’s leading energy company ACWA Power, marking the company’s first renewable energy project in the country. President Ilham Aliyev highlighted the significance of this cooperation, saying: 'This is the first renewable power plant built by 'ACWA Power' in Azerbaijan, but not the last one. The company has bigger plans, and the Government of Azerbaijan fully supports these plans,'" the analyst said.
The foundation stone of the plant was laid in January 2022, and the project was fully completed and commissioned within four years. Garayev said this reflects Azerbaijan’s strong investment climate, effective public–private partnership model, and high level of implementation discipline.
According to him, the Khizi–Absheron Wind Power Plant is located across the Absheron and Khizi districts and includes 37 wind turbines, each with a capacity of 6.5 megawatts. The plant’s annual electricity generation is estimated at about 1 billion kilowatt-hours.
“These figures lead to several important outcomes. Around 220 million cubic meters of natural gas are saved annually, more than 400,000 tons of carbon dioxide emissions are prevented, and the share of green energy in the national energy balance increases significantly,” Garayev said. He added that a total of $340 million in foreign investment was attracted to the project, underscoring Azerbaijan’s appeal to international investors in the green energy sector.
The Khizi–Absheron project also represents a successful example of international cooperation. Its main contractor is China’s Power China Huadong Engineering Co., Ltd. President Ilham Aliyev praised this partnership, stating: “Here we also see a very successful example of international cooperation.”
Additionally, Saudi Arabia’s deputy minister of energy, Nasser Al-Qahtani, said the project demonstrates the strategic partnership between the 2 countries. According to him, the cooperation will not be limited to a single project and will extend to new onshore and offshore wind projects, as well as energy storage systems.
Garayev stressed that the Caspian Sea occupies a special place in Azerbaijan’s green energy strategy. Based on international assessments, the wind energy potential of the Azerbaijani sector of the Caspian Sea stands at 157 gigawatts. President Ilham Aliyev has described this potential saying: 'According to international estimates, the wind potential in the Azerbaijan sector of the Caspian Sea stands at 157 gigawatts.' In other words, this process will gain momentum in Azerbaijan in the coming years.
"Realizing this potential could transform Azerbaijan into one of the region’s main green energy hubs, particularly in the context of initiatives aimed at supplying green energy to Europe through dedicated corridors.
One of the key challenges of renewable energy is the intermittency of production, and Azerbaijan has begun addressing this issue in advance. According to President Ilham Aliyev, the country is creating its first-ever 250-megawatt Battery Energy Storage System (BESS). 'Regarding future plans, given that our renewable energy potential will increase significantly, we must develop the infrastructure to store this energy,' he said.
This approach shows that Azerbaijan views green energy not only in terms of production but also as a comprehensive energy ecosystem. The liberated territories also hold a special place in the country’s green energy map. Over the past 5 years, nearly 40 small hydropower plants have been built in Karabakh and East Zangezur, with a combined capacity exceeding 300 megawatts. Plans are in place to construct additional hydropower plants with a capacity of 500-600 megawatts in the future.
These projects contribute not only to energy security but also to the socio-economic revival of the region,” Garayev said.
He added that one of the main reasons for Azerbaijan’s success in green energy is its stable and reliable investment environment. President Ilham Aliyev has repeatedly underscored this principle, stating, “The state of Azerbaijan always protects foreign investment. Many of our oil contracts have been implemented for years, and not a single paragraph, not a single article, not even a single word in the adopted decisions and contracts has ever been—and will ever be—changed.”
This policy has enabled the country to attract more than $300 billion in foreign investment to date, while low external debt and high foreign currency reserves further strengthen investor confidence. Under signed agreements, Azerbaijan plans to build wind and solar power plants with a capacity of 6 gigawatts by 2030 and 8 gigawatts by 2032, significantly increasing the share of green energy in the national balance. As President Ilham Aliyev put it: “Azerbaijan will become a country with a reliable and major electricity generation capacity in the region.”
Garayev concluded that the commissioning of the Khizi–Absheron Wind Power Plant is not merely the launch of a new energy facility but a practical embodiment of Azerbaijan’s green energy strategy. “Today, Azerbaijan is shaping its position not only as an oil and gas exporter but also as a future exporter of green energy. The steps being taken show that this path is deliberate, consistent, and focused on real results,” he said.
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