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Nazrin Abdul

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The foundation of Azerbaijan’s remarkable achievements lies in the efficient management system of the Republic. At the heart of the nation’s successful politics is a thriving economy.

President Ilham Aliyev has consistently emphasized the importance of a robust economy as a cornerstone of national success. Reflecting on the nation's victory, he stated: “If we didn’t have economic power, it would not have been possible to achieve this victory. First, economic independence had to be ensured—and it was. Today, Azerbaijan is economically independent. It does not rely on anyone—neither any country nor any international financial institution.”

Under President Aliyev's leadership, Azerbaijan has embarked on large-scale energy and transport projects, established new regional cooperation platforms, and assumed key roles in prestigious international organizations. The country’s increasing global standing is further demonstrated by its hosting of major global events, such as the upcoming COP29 UN Climate Change Conference. The choice of Azerbaijan to host this critical international event is a clear reflection of the growing prestige and influence the country holds on the global stage.

President Ilham Aliyev’s successful governance has laid the groundwork for Azerbaijan’s economic prosperity, strengthened its position within the international community, and solidified its place among the world’s leading and most powerful nations.

A key aspect of Azerbaijan’s economic policy is its focus on improving citizens' living standards while fostering trust between the state, society, and economic actors. Through systematic efforts to diversify the economy, the government has significantly reduced dependence on the oil and gas sector, while simultaneously expanding the non-oil sector and increasing non-oil exports.

The diversification of Azerbaijan’s economy is a work in progress, supported by key state programs and macroeconomic projects that aim to balance the oil and non-oil sectors. This strategic diversification strengthens Azerbaijan’s geopolitical position, cementing the country as a regional leader and an important partner in global peace and security.

Azerbaijan’s energy exports further demonstrate its strategic importance. Azerbaijani natural gas is now delivered to eight countries, including seven European nations. The completion of the Serbia-Bulgaria Gas Interconnector in Nis, Serbia, is expected to make a significant contribution to Europe’s energy security.

Azerbaijan’s oil exports via the Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines serve Mediterranean and Black Sea markets, while the Southern Gas Corridor—a 3,500-kilometer infrastructure project—plays a vital role in ensuring Europe’s energy security. Additionally, a Memorandum of Understanding on strategic energy partnership has been signed between Azerbaijan and the European Union, which envisions a doubling of Azerbaijan’s gas exports to Europe by 2027.

Azerbaijan advances green energy development with strategic projects and international partnerships

Alongside traditional energy sources such as oil and gas, Azerbaijan is also placing significant emphasis on alternative energy, actively pursuing joint projects with key companies and countries in this sector. As part of its commitment to renewable energy, President Ilham Aliyev has issued directives to utilize renewable energy resources in the country’s newly liberated territories.

Under the economic development strategy set by President Aliyev for the liberated regions, transforming these areas into a "green energy" zone is a key priority. Following the 44-day war, during a meeting on January 6, 2021, which reviewed the economic outcomes of 2020, President Aliyev presented a strategic vision for the establishment of a Green Energy Zone in the liberated territories, highlighting the substantial renewable energy potential available in these regions.

To date, Azerbaijan has actively promoted its green energy agenda through several large-scale projects, including the commissioning of a 230-megawatt solar power plant and the imminent completion of a 240-megawatt solar power station. Furthermore, in June, the foundation stones for three solar and wind power plants were laid in Baku, with a total capacity of one gigawatt. These projects signal Azerbaijan’s growing role in the renewable energy sector.

Recognizing the country's vast energy potential, leading global energy companies such as Masdar, ACWA Power, and BP have invested in Azerbaijan, capitalizing on its renewable energy opportunities. Azerbaijan is well-positioned in both technical and economic terms to harness its renewable energy resources. The country’s renewable energy potential includes 135 gigawatts on land and 157 gigawatts at sea. Economically, Azerbaijan’s renewable energy potential is estimated at 27 gigawatts, with wind energy contributing 3,000 MW, solar energy 23,000 MW, bioenergy 380 MW, and mountain river potential adding 520 MW.

The strategic focus on renewable energy and economic diversification in Azerbaijan highlights the country’s forward-looking approach to sustainable development. Following the significant victory in the 44-day war, Azerbaijan has not only reclaimed its territories but is also positioning itself as a regional leader in green energy. The President's vision for transforming these newly liberated areas into a "green energy" zone reflects the nation’s commitment to long-term, environmentally sustainable growth.