Azerbaijan Expands Renewables Backed by UAE and Chinese Clean Energy Investments

Renewable energy accounted for 20 per cent of Azerbaijan's total electricity production during the first nine months of 2026, rising from 13.4 per cent in 2025, according to a report published by OilPrice.com citing official government figures. Between January and September 2026, the country generated 21.2 billion kilowatt-hours of electricity, compared to 28.7 billion kilowatt-hours across all of 2025. The growth in clean generation helped avoid the consumption of approximately 840 million cubic meters of natural gas over the period.

The country's renewable expansion has been supported by foreign direct investment exceeding $500 million, with companies from the United Arab Emirates, China, and Saudi Arabia holding large-scale green energy projects in the country. Among active developments, construction is progressing on UAE-based clean energy firm Masdar's 200-megawatt wind power project.

Azerbaijan plans to commission 11 solar and wind plants representing a combined capacity of 2 gigawatts. Three facilities totalling 570 megawatts have already entered commercial operation. Authorities plan to bring the 445-megawatt Bilasuvar solar plant and the 25-megawatt Shams 1 solar facility online by the end of 2026, with further solar developments—including the Neftchala and Shafag projects—targeted for completion in 2027.

Azerbaijani Energy Minister Parviz Shahbazov stated that competitive renewable energy auctions are slated to commence in 2028. The government has set a target to raise the share of renewables in its installed power generation capacity to 33.3 per cent by 2027, with a long-term goal of reaching 8 gigawatts of renewable generation capacity by 2032.