By Abdullahi Lukman
Azerbaijan increased the share of renewable energy in its electricity generation to 20 per cent in the first nine months of 2026, up from 13.4 per cent in 2025, as the country expands investment in solar and wind power.
Energy Minister Parviz Shahbazov disclosed that the country generated 21.2 billion kilowatt-hours of electricity between January and September 2026, while renewable energy development also helped save 840 million cubic metres of natural gas during the period.
According to Shahbazov, a major milestone was recorded in the Nakhchivan Autonomous Republic, where renewable energy sources met the region’s entire electricity demand from April 21 to July 2, 2026.
The government aims to increase renewable energy’s share of total installed electricity generation capacity to 33.3 per cent by 2027, supported by the planned commissioning of new
solar and wind power plants.
Under the first phase of its green energy development programme, Azerbaijan plans to commission 11 renewable energy facilities with a combined capacity of two gigawatts. Three plants with a total capacity of 570 megawatts are already operational.
The government expects to commission the 445-megawatt Bilasuvar solar power plant and the 25-megawatt Shams 1 solar power plant before the end of 2026. Meanwhile, UAE-based renewable energy company Masdar is developing a 200-megawatt wind power project.
Additional projects scheduled for completion in 2027 include the 315-megawatt Neftchala, 240-megawatt Shafag, 50-megawatt Shams, 50-megawatt Ufug and 25-megawatt Western Ufug solar power plants.
The Ufug and Western Ufug projects are being developed by Enerso Jabrayil, a subsidiary of Nobel Energy, which is part of NEQSOL Holding.
Shahbazov said the planned facilities were expected to generate about five billion kilowatt-hours of electricity annually, reduce natural gas consumption by more than 1.1 billion cubic metres and cut carbon emissions by up to 2.4 million metric tonnes.
Investment from foreign companies has also supported the country’s renewable energy expansion, with foreign direct investment in the sector exceeding $500 million.
Masdar has commissioned a 230-megawatt solar power plant in Azerbaijan, described as the first of three clean energy projects financed by the company. Saudi Arabia’s ACWA Power has invested in a 240-megawatt wind farm, while China’s Universal International Holdings Limited recently launched a 100-megawatt photovoltaic power plant.
Although Azerbaijan remains a major oil and natural gas producer and exporter, the country is seeking to diversify its domestic electricity supply through renewable energy while maintaining its position in regional and international energy markets.
The country has an estimated technical renewable energy potential of 135 gigawatts onshore and 157 gigawatts offshore, while its economically viable potential is estimated at 27 gigawatts.
The economically viable resources include 23 gigawatts of solar energy, three gigawatts of wind power, 380 megawatts of bioenergy and 520 megawatts of hydropower from mountain rivers.
