Azerbaijan is pushing deeper into renewable energy, but oil and gas still dominate the economy. The country is expanding solar and wind projects while trying to reduce long-term dependence on fossil fuels.
The shift is real. But so is the country’s dependence on fossil fuels, which still dominate exports and much of the economy.
Azerbaijan Renewable Energy Push Gathers Pace
Azerbaijan built its modern economy on oil and gas, a strategy created by former president, Heydar Aliyev. That legacy still shapes the country’s energy mix, its exports, and its political importance. The International Energy Agency says oil and gas make up more than 90% of Azerbaijan’s exports, even as the country tries to expand wind, solar, hydropower, biomass and geothermal capacity.
That tension now sits at the heart of Azerbaijan’s renewable energy push.
The government wants to diversify the economy, free up more gas for export, and build a stronger clean-energy sector at home. The World Bank said in March 2025 that it approved a $173.5 million loan to help Azerbaijan modernize its energy infrastructure and create conditions for more private investment in renewable energy, especially onshore wind.
Officials in Baku say more than 2 gigawatts of green energy capacity should be integrated into the national energy system by 2027. Azerbaijan’s Energy Ministry linked that target to the AZURE project and broader grid upgrades.
Garadagh Solar Plant Gives Azerbaijan Renewable Energy Push a Flagship Project
The clearest symbol of that push is the 230 MW Garadagh Solar PV Plant.
Azerbaijan’s renewable energy agency says the plant is the largest solar power plant in the Caspian region and the CIS. The agency says it covers 550 hectares, includes 570,000 solar panels, and should generate about 500 million kilowatt-hours a year.
Masdar says it developed the 230 MW Garadagh plant and has also signed agreements to develop a further 1 GW of clean-energy projects in Azerbaijan. That gives the country a visible pipeline beyond one flagship installation.
The IEA says Azerbaijan has considerable renewable potential, with strong solar and wind resources as well as biomass, geothermal and hydropower prospects. It also notes that practical deployment has lagged behind the scale of those ambitions.
Fossil Fuel Still Drives The Economy
Azerbaijan is not walking away from oil and gas.
It is trying to build a second energy pillar while fossil fuels still pay the bills. That makes the transition strategic, not ideological. The country wants more domestic electricity from renewables, while preserving hydrocarbons as a major export earner.
That is why the renewable build-out matters.
If Azerbaijan can replace part of its domestic gas-fired generation with solar and wind, it can strengthen energy security at home and keep more gas available for export. That logic also helps explain why the government keeps talking about transmission upgrades, foreign investment and regional power links.
Renewable Energy Shift Still in Early Stages
The country’s direction is clear, even if the transition is still at an early stage.
Azerbaijan now has a flagship solar plant, outside financing for grid modernization, and a stated plan to bring significant new green capacity online by 2027. But oil and gas still dominate the export economy, and the IEA says renewable deployment has so far remained limited relative to the country’s potential.
Azerbaijan’s renewable energy push is no longer just rhetoric.
The bigger question now is how fast the country can turn projects and promises into enough generation to reduce its reliance on fossil fuels at home, while oil and gas remain central to its wealth abroad.
Azerbaijan renewable energy plans are moving ahead, but the country still depends heavily on oil and gas. The speed of that transition now matters.
