Key facts
- Renewables supplied 20% of Azerbaijan's electricity in January to September 2026, up from 13.4% in 2025, per official figures.
- Azerbaijan produced 21.2 billion kilowatt-hours of electricity in the first nine months of 2026, against 28.7 billion for all of 2025.
- The government targets 33.3% renewable share of installed capacity by 2027 and 8 GW of renewable capacity by 2032.
- Energy Minister Parviz Shahbazov said Nakhchivan met 100% of its electricity demand from renewables from April 21 to July 2.
- Renewables growth avoided an estimated 840 million cubic meters of natural gas use in the first nine months of 2026, the report said.
- Shahbazov said Azerbaijan plans about $2.6 billion of renewable and grid investment by 2027, including $600 million for the grid.
Azerbaijan, long a producer of oil and gas, has expanded renewable power capacity in recent years, and renewable sources supplied 20% of its electricity production in the first nine months of 2026, up from 13.4% in 2025, according to official figures cited in a report by Oilprice.com that did not carry a publication date.
The country produced 21.2 billion kilowatt-hours of electricity between January and September 2026, against 28.7 billion kilowatt-hours for the whole of 2025. The government plans to raise the renewable share of installed generation capacity to 33.3% by 2027 and to develop 8 GW of renewable capacity by 2032, with 2 GW expected by 2027. It cites technical potential of 135 GW onshore and 157 GW of offshore wind in the Caspian Sea.
Energy Minister Parviz Shahbazov said the Nakhchivan Autonomous Republic met 100% of its electricity demand from renewable sources between April 21 and July 2. The report said renewables growth, mainly solar and wind, avoided an estimated 840 million cubic meters of natural gas use in the first nine months of 2026.
Azerbaijan plans to commission 11 solar and wind plants totaling 2 GW. Three facilities with a combined 570 MW have come online, and the government expects the 445-MW Bilasuvar and 25-MW Shams 1 solar plants by the end of the year. Construction is under way on UAE-based Masdar's 200-MW wind project, and plants due next year include the 315-MW Neftchala, 240-MW Shafag, 50-MW Shams, 50-MW Ufug and 25-MW Western Ufug solar plants. The planned projects are expected to produce 5 billion kilowatt-hours a year, cut gas use by more than 1.1 billion cubic meters a year and cut emissions by 2.4 million metric tons.
Foreign direct investment in the sector has surpassed $500 million, with companies from the UAE, Saudi Arabia and China holding large projects. Shahbazov said renewable energy auctions are expected to start in 2028. The EU's Business Climate Report Azerbaijan 2025/26 said European companies surveyed saw progress in the sector and active engagement of international developers.
The government plans to invest about $2.6 billion in renewable projects and grid development by 2027, including $600 million for grid infrastructure, according to Shahbazov. Projects include the AZURE battery storage project, the Navoi substation and new 500-kilovolt transmission lines. Solar panel manufacturing is under way, with wind turbine blade and tower plants planned in the Alat Free Economic Zone.