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Azerbaijan plans renewable energy push for power and energy security
The World Bank approved a $173.5 million renewable energy project in March 2025, targeting grid upgrades and more diversified supply as Azerbaijan reduces reliance on hydrocarbons.
Azerbaijan, a long-time major oil producer and exporter, is moving to diversify its energy mix ahead of COP29 in 2024, leaning into renewables to strengthen energy security, OilPrice reports.
In 2023, natural gas supplied 67.0% of Azerbaijan’s energy, while oil and oil products accounted for 31.1%, and hydropower plus other renewables contributed less than 2.0% of the mix. Despite hydrocarbons accounting for almost half of Azerbaijan’s GDP, the government plans to expand renewable energy capacity to support diversification and meet rising demand.
OilPrice says the World Bank approved the Azerbaijan Scaling-Up Renewable Energy Project, known as AZURE, in March 2025. The $173.5 million loan from the International Bank for Reconstruction and Development is expected to strengthen the country’s power transmission network, modernize energy infrastructure, and encourage private investment.
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