Oil-Rich Azerbaijan Bets Big on a Clean Energy Boom
Now It May Help Break It Apart Surging data-center demand, electrification, transmission… Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… Azerbaijan is one of the world’s oldest oil producers and exporters, having pumped crude since the mid-19thcentury, and remains a major global oil producer.
It has long relied on oil and gas to meet its energy needs and as a major economic contributor.
However, the host of the 29thUN Climate Change Conference (COP29) in 2024 is now looking to diversify its energy mix by deploying more renewable energy capacity.
Natural gascontributed 67 per cent of Azerbaijan’s energy supply in 2023, while oil and oil products accounted for 31.1% and hydropower and other renewable energy sources contributed less than 2 per cent of the energy mix.
Despite its longstanding reliance on oil and gas – hydrocarbons still account for almost half of Azerbaijan’s GDP – the government has major plans to expand its renewable energy capacity to support greater diversification and strengthen energy security.
In March 2025, the World Bank approved the Azerbaijan Scaling-Up Renewable Energy Project (AZURE), which aims to strengthen Azerbaijan’s power transmission network, support energy diversification, and meet the country’s growing energy demand.
The$173.5 million loanfrom the International Bank for Reconstruction and Development (IBRD) is expected to help expand and modernise Azerbaijan’s energy infrastructure and encourage private investment in its renewable energy sector, particularly in onshore wind.
The initiative, which is part of the World Bank’s Europe and Central Asia Renewable Energy Scale-up (ECARES) multi-year programme, is expected to help attract an initial $384 million in private investments.
In November 2025, the government updated itsnational climate action planto include ambitious renewable energy targets.
Azerbaijan now aims to reduce its greenhouse gas emissions by 40 per cent, from 1990 levels.
It also aims to boost the share of energy that comes from renewables to 30 per cent by 2030.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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