As the global demand for renewable energy intensifies due to climate change and shifting energy dynamics, Azerbaijan and Türkiye have increasingly turned their focus to expanding their cooperation in the green energy sector. The world’s efforts to mitigate the effects of climate change, coupled with Europe’s ongoing push to reduce its reliance on Russian gas, have positioned both countries as key players in the renewable energy market. Their growing partnership not only serves their domestic energy needs but also offers significant potential for electricity exports to Europe, marking a new chapter in their bilateral energy cooperation.
A Longstanding Energy Partnership
Azerbaijan and Türkiye have a history of energy collaboration dating back to the early 2000s, primarily in the fields of oil and natural gas. In 2003, Azerbaijan began importing electricity from Türkiye, but by 2006, the flow reversed, with Azerbaijan becoming an exporter of electricity to Türkiye. This shift was formalized through the “Azerbaijan-Georgia-Türkiye Energy Bridge Project,” which further strengthened the energy ties between the two nations. Since 2013, Azerbaijan has been exporting electricity to Türkiye, helping to meet the country’s growing energy needs. Additionally, Azerbaijan’s Nakhchivan region is connected to Iğdır, Türkiye, by three aerial power lines, further enhancing the reliability of energy exchange between the two countries.
The Transition to Green Energy
Recent developments, particularly after Azerbaijan’s success in the Second Karabakh War and the subsequent liberation of its territories, have highlighted the country’s strategic shift towards renewable energy. Both Azerbaijan and Türkiye are now making significant strides in green energy to address the challenges posed by climate change and to diversify their energy sources.
In line with global trends, Azerbaijan is looking to capitalize on its vast renewable energy potential. The country has significant resources in solar, wind, and hydropower—key components of the green energy transition. This potential is particularly important as Azerbaijan’s oil and gas sector, while still crucial, is not enough to meet the long-term needs of a modernizing, energy-hungry economy. With the establishment of the Renewable Energy Resources State Agency in September 2020, Azerbaijan is on track to increase its renewable energy capacity. The agency’s goal is to ensure that 30% of Azerbaijan’s total power capacity comes from renewable sources by 2030, with the liberated territories playing a key role in achieving this target.
Key Drivers of Cooperation
Azerbaijan’s role as a reliable partner in renewable energy is increasingly evident. Türkiye, with its growing economy and surging electricity demand, is looking to Azerbaijan as a crucial partner in its transition to cleaner energy. Over the past two decades, Türkiye’s electricity consumption has tripled, and this demand is projected to grow at an average annual rate of 4.7%. Energy and Natural Resources Minister Alparslan Bayraktar has emphasized that Azerbaijan, rich in renewable resources, will play a significant role in meeting Türkiye’s clean energy needs.
In 2020, Azerbaijan and Türkiye signed the Agreement on Cooperation in the Field of Energy and Mining, which outlines a roadmap for collaboration on hydrocarbon resources, technical cooperation in the electricity sector, and the development of electricity trade between the two countries. Azerbaijan’s commitment to renewable energy is evident in its cooperation with the European Union, particularly through the 2022 strategic energy memorandum, which places a heavy emphasis on green energy projects.
Infrastructure Developments and Green Energy Zones
Azerbaijan’s ongoing efforts to harness renewable energy have been bolstered by significant investments in infrastructure. The Azerbaijan-Türkiye III Energy Forum, held in September 2023, focused on developing Nakhchivan as a “green energy region.” Plans include the construction of a 1,500 MW renewable energy facility, combining both wind and solar power. Of this capacity, 1,000 MW will be exported to Türkiye, with future expansions facilitating further exports to Europe.
To support this vision, Turkish Electricity Transmission Inc. (TEIAS) and AzerEnerji OJSC have signed agreements to develop the infrastructure needed to import and export electricity between the two countries. In addition, a Memorandum of Understanding (MoU) between Azerbaijan’s State Agency for Renewable Energy Resources and A-Z Czech Engineering LLC has paved the way for the creation of new transmission lines that will carry wind and solar energy from Nakhchivan to Türkiye.
A Regional Green Energy Hub
Azerbaijan and Türkiye’s green energy cooperation is not only limited to their bilateral relationship. The two countries have been actively working on creating a renewable energy corridor that will extend through Central Asia. A strategic energy corridor, including the Zangezur corridor from the Caspian Sea to Türkiye, is under consideration. This project will connect Azerbaijan’s green energy resources to Europe, strengthening the region’s position in the global renewable energy market.
In November 2024, a quadripartite meeting involving Azerbaijan, Türkiye, Georgia, and Bulgaria was held within the framework of the Istanbul Energy Forum. During this session, the role of the green energy corridor in helping the participating countries meet their carbon emission reduction targets was discussed. The meeting also assessed opportunities for increasing interconnection capacities to enhance energy security in the region, reinforcing the importance of sustainable energy solutions.
Future Prospects
Looking ahead, Azerbaijan and Türkiye are poised to become central players in the global green energy transition. The potential for green energy exports from Azerbaijan to Türkiye—and from there to Europe—is vast. In 2024, Azerbaijan’s Energy Minister Parviz Shahbazov revealed that more than 70% of the country’s planned green energy capacity, expected to reach at least 7 GW by 2030, will be dedicated to exports. A new energy supply map will soon be developed to facilitate these energy flows and ensure the smooth integration of renewable sources into the wider European energy market.
Azerbaijan’s collaborations with countries like Kazakhstan and Uzbekistan further strengthen its position as a leading energy partner in the region. The upcoming Intergovernmental Agreement on the Strategic Partnership in the Development and Transmission of Green Energy, expected to be signed between Azerbaijan, Kazakhstan, and Uzbekistan, will enhance cross-border energy exchanges and contribute to the development of a regional green energy hub.
Conclusion
The expanding green energy partnership between Azerbaijan and Türkiye reflects the evolving energy landscape in the region. With Azerbaijan’s abundant renewable resources and Türkiye’s growing energy demands, the two countries are well-positioned to become leaders in the global shift toward sustainable energy. Their collaborative efforts, including the development of strategic energy corridors and joint green energy projects, will not only strengthen their bilateral ties but also position them as key contributors to Europe’s renewable energy future.