Azerbaijan seeks Chinese help in achieving “green” power dream

Azerbaijan

is increasingly partnering with

China

to realize its "green power dream," signing significant deals for solar and wind projects that form the backbone of a planned "green energy corridor" to Europe. This collaboration leverages China's expertise and affordable technology to help Azerbaijan meet its ambitious renewable energy goals and free up natural gas for export.

Key Areas of Cooperation

Azerbaijan's strategy involves Chinese firms as both equipment suppliers and project developers.

• Solar Power: Azerbaijan has signed multiple agreements for the construction of solar power plants.
  • A deal with China's Datang Overseas Investment Co. and SOCAR Green involves a 100 MW floating solar power plant on Lake Boyukshor near Baku, which will include a 30 MW battery energy storage system.
  • An investment agreement has been signed with Universal Energy for the construction of another 100 MW solar plant in the Gobustan district, with a target completion date in the second half of 2026.
• Offshore Wind: A memorandum of understanding has been signed with China Datang Overseas Investment and PowerChina Resources to explore the development of a large-scale 2 GW offshore wind project in the Caspian Sea.
• Technology & Manufacturing: The partnership extends beyond generation, with plans to establish local production of renewable energy equipment like wind turbines, blades, and solar panels, and a joint green energy research center for workforce development.

Strategic Goals

This partnership is driven by mutual benefits:

• For Azerbaijan: The projects help Azerbaijan meet a domestic target of increasing the share of renewables in its installed capacity to 33% by 2027 and nearly doubling total capacity by 2030. It also allows the redirection of natural gas, currently used for domestic power, to the European Union, enhancing energy security and export revenues.
• For China: The deals provide an outlet for Chinese manufacturers facing overcapacity domestically and strengthen China's presence and influence in the South Caucasus region's emerging green energy market. The projects align with China's broader Belt and Road Initiative, positioning Azerbaijan as a crucial energy transit hub between Central Asia and Europe.

The overall plan is to create a robust Caspian-Black Sea "green energy corridor" that can export power to Europe, potentially reducing the EU's reliance on other energy sources.

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