Azerbaijan’s renewable energy sector is gaining significant traction from foreign investors, a key factor in achieving the country’s ambitious clean energy targets, according to a recent Moody’s analysis cited by Report.
The report notes that nations in Central Asia and the Caucasus, including Azerbaijan, have implemented reforms to attract private investment in energy. These include liberalizing markets, reducing subsidies, and restructuring utilities into separate entities for generation, transmission, and distribution. Independent regulators and standardized power purchase agreements have facilitated public-private partnerships (PPPs). Countries like Uzbekistan, Kyrgyzstan, and Tajikistan are aligning electricity tariffs with cost-recovery models, with Uzbekistan targeting full implementation by 2027–2028. These changes have created competitive markets, positioning Azerbaijan and Uzbekistan as leaders in renewable energy development in the region.
Ahead of COP29, Azerbaijan aims to increase its renewable energy capacity to 35.5% by 2030, supported by plans to commission solar and wind projects totaling 2,250 MW. Azerenerji, the state-owned energy company, plans to develop nine solar and wind power plants with a combined 2 GW capacity, alongside new hydroelectric facilities.
Moody’s highlights foreign investment as a critical driver of these initiatives. Notable projects include:
Shafag solar power plant (240 MW, ~$200 million),
Garadagh solar power plant (230 MW, $262 million),
Masdar’s Mega project from the UAE (1 GW),
Khizi-Absheron wind power plant (240 MW, $34 million).
Additionally, Saudi Arabia’s ACWA Power has partnered with Azerbaijan’s State Oil Company (SOCAR) to develop 1 GW of onshore wind, 1.5 GW of offshore wind, energy storage systems, and green hydrogen projects.
https://report.az/en/energy/moody-s-azerbaijan-becomes-regional-leader-in-renewable-energy-dev-t