At a time when global energy markets are under increasing pressure from geopolitical tensions, climate commitments, and growing demand, Azerbaijan’s energy strategy stands out for its balance between reliability and transformation. While remaining a key supplier of traditional energy resources to international markets, the country is simultaneously accelerating its transition toward renewable energy, positioning “green energy” as both an economic driver and a pillar of long-term energy security.

This dual-track approach aligns with Azerbaijan’s broader socio-economic development strategy, its post-conflict reconstruction agenda, and its ambition to strengthen regional stability through sustainable infrastructure. In this context, the power sector has evolved from being merely a domestic utility backbone into a strategic instrument supporting green growth, export diversification, and investor confidence.

With the commissioning of new generation facilities, Azerbaijan’s total installed electricity capacity has reached 9,732.5 MW, marking an increase of 1,317 MW, or 15.6 percent, compared to 2024. This expansion is not only quantitative but structural, reflecting a shift toward cleaner and more diversified sources of energy.

According to 2025 data, Azerbaijan’s power system comprises:

• 24 thermal power plants (7,903 MW),

• 65 hydroelectric power plants (1,443.5 MW),

• 9 solar power plants (278.2 MW),

• 5 wind power plants (63.5 MW),

• 1 solid waste power plant (37 MW),

• 3 hybrid power plants (7.3 MW).

Renewable energy capacity, including hydropower, totals 1,829.6 MW, accounting for 18.8 percent of overall generation capacity. Importantly, parallel investments in grid infrastructure have increased transmission capacity to 29,714 MVA, ensuring system stability........

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