Powering the Future: Azerbaijan’s Renewable Energy Sector and its Strategic Transformation

Abstract

This article explores Azerbaijan's shift from a hydrocarbon-dependent economy to a focus on renewable energy sources. While oil and gas remain integral to the country's economic foundation, escalating environmental concerns, diversification needs, and adherence to international climate commitments are catalysing this strategic transformation. Azerbaijan possesses rich solar, wind, and hydro resources, offering significant untapped potential to reshape its energy landscape and improve regional energy collaboration.

This analysis delves into Azerbaijan's renewable energy trajectory by assessing its natural resources, existing policy frameworks, major projects, investment trends, and geopolitical implications. Utilising international comparisons and real-time data, the article highlights both the successes achieved and the challenges that persist within the renewable energy sector. The conclusion provides strategic recommendations aimed at optimising Azerbaijan’s transition to green energy, enhancing energy security, and positioning the nation as a sustainable energy exporter in the Caspian region and beyond.