Azerbaijan's $2.6 billion energy expansion sets up an 8 GW green power goal

Azerbaijan is moving into a new stage of energy development, combining its established role as an oil and natural gas supplier with an ambitious renewable energy programme. The country plans to complete 11 power plants with about 2 gigawatts (GW) of combined capacity by the end of 2027, supported by an estimated $2.6 billion in investment.

Energy Minister Parviz Shahbazov said private investment would exceed $2 billion, while state investment would surpass $600 million, meaning private capital accounts for approximately 77% of projected funding. Azerbaijan aims to develop about 8 GW of solar and wind capacity by 2032, with nearly 20 large-scale renewable projects progressing with international and local partners.

Partners include Masdar of the United Arab Emirates, ACWA Power of Saudi Arabia and British energy company bp, along with businesses from China. Local investors are developing four power plants with a combined capacity of 150 megawatts in Jabrayil and Nakhchivan, and the 100 MW Gobustan Solar Power Plant has been commissioned. Competitive auctions are planned from 2028.