Azerbaijan hoping to cut emissions with $2 billion green energy investment

Azerbaijan is hoping to raise the share of renewables across its energy sector to almost a third with over $2 billion in green investments, its energy minister said on Wednesday, as Baku plugs its environmental credentials before hosting COP29 later this year.

Azerbaijan, which will host the United Nations COP29 climate summit in November, has an estimated 2.5 trillion cubic metres of natural gas reserves, according to the 2021 BP Statistical Review of World Energy, and it aims to double its gas exports to Europe by 2027.

While the global warming emissions from burning natural gas are lower than those from coal or oil, they remain much higher than green energy sources.

The country is keen to tout more sustainable energy projects, which include wind and solar, and efforts to construct an electric cable under the Black Sea to transfer green Azeri energy from planned Caspian Sea windfarms to Europe.

“By 2027, in the first phase of partnership with energy companies we are planning to realise close to 2 gigawatts of new renewable volumes, which will increase the share of renewables in installed capacity to 33%,” Energy Minister Parviz Shahbazov said in a speech on Wednesday.

The current share is 20.86%, the ministry said. The share for electricity generation is lower, at 8.5% at the end of the first quarter of 2024.
Shahbazov said investments of more than $2 billion would help produce 5.3 billion kilowatt hours of electricity, saving 1.2 billion cubic metres of gas and reducing emissions by up to 2.5 million tonnes.

At the same time, Shahbazov stressed that Azerbaijan would continue pushing fossil fuels.

“Despite the global downtrend in fossil fuel financing and lack of long-term demand guarantees, Azerbaijan remains committed to gas supply to its partners,” he said.