The cooperation between Azerbaijan and China continues to develop rapidly, encompassing key strategic directions and opening new opportunities for mutual growth. One of the most significant aspects of this evolving partnership has been the advancement of green energy, a sector both nations have prioritized as part of their long-term strategies. Through various international initiatives, including COP29 and the Belt and Road Forum, Azerbaijan and China have reached new agreements promising to catalyze the adoption of cutting-edge technologies and the implementation of large-scale renewable energy projects. This collaboration is poised to play a transformative role not only in the energy landscape of Azerbaijan but also in contributing to global sustainability goals.
Reflecting on 2024, it is evident that energy relations between the two countries have reached unprecedented levels of cooperation. Chinese investments, combined with advanced technologies and Azerbaijan's strong commitment to the green energy sector, provide a solid foundation for sustainable economic growth, regional energy security, and a broader alignment with global climate objectives. This growing partnership highlights key achievements in renewable energy and sets the stage for a promising future of bilateral cooperation in this critical sphere.
Green energy has emerged as a cornerstone of Azerbaijan-China relations. During COP29 in Baku, Azerbaijan signed several landmark agreements with leading Chinese companies aimed at advancing renewable energy development. Among the most notable is the agreement between China Energy Overseas Investment Co. Ltd. and SOCAR Green, which will see the construction of a 160 MW solar power plant in the Fizuli region. This project represents a significant step in Azerbaijan’s efforts to expand its renewable energy portfolio.
Additionally, memorandums with China Energy Overseas Investment Co. Ltd. and China Datang Co. Ltd. set the stage for deeper collaboration in renewable energy and related technologies.
These agreements go beyond traditional investments. They also include plans to establish a research and development center in Azerbaijan, which will serve as a hub for innovation and knowledge sharing. This initiative underscores both nations' commitment to fostering a forward-looking approach to energy, leveraging cutting-edge technologies and research to drive the green transition.
As a global leader in green technologies and renewable energy, China is an ideal partner for Azerbaijan’s ambitious green transition. In June 2024, a memorandum of understanding between Azerbaijan’s Ministry of Energy and China Gezhouba Group Overseas Investment laid the groundwork for multiple projects. These include solar energy installations, offshore wind farms, energy storage facilities, and integrated smart energy systems. Another promising area for cooperation identified in the agreement is the potential for green hydrogen production, a frontier technology that could significantly enhance Azerbaijan’s energy exports and environmental footprint.
China’s expertise in solar and wind energy technologies is expected to drive Azerbaijan’s renewable energy sector forward. In turn, Azerbaijan’s strategic location and robust infrastructure enable it to play a critical role in developing green energy corridors within China’s Belt and Road Initiative. These corridors are envisioned to connect regions, enhance energy security, and promote sustainability on a regional and global scale.
In October 2024, Azerbaijan’s Minister of Energy, Parviz Shahbazov, attended the 3rd Belt and Road Ministerial Conference in China, marking another milestone in bilateral cooperation. During the conference, Shahbazov met with representatives from key Chinese companies, including China Energy International Group Co., Ltd., to discuss integrating renewable energy into Azerbaijan’s energy system. These discussions emphasized potential Caspian wind energy projects, the local production of green energy equipment, and further investments in solar and wind power initiatives. China Energy expressed its intention to expand its involvement in Azerbaijan’s renewable energy projects and proposed the establishment of a cutting-edge research center to support these efforts.
In parallel, Azerbaijan has been actively promoting its green energy corridor initiatives through the Caspian Sea, aiming to export renewable energy to Europe. This project invites China to play a pivotal role as both an investor and a technology provider, further strengthening the strategic partnership.
The involvement of renowned Chinese companies, such as China Datang and Huawei, has opened new avenues for technological collaboration. China Datang’s expertise in carbon emissions management aligns with Azerbaijan’s goals of reducing its carbon footprint and implementing sustainable energy solutions. Meanwhile, Huawei’s technological leadership in smart energy solutions offers significant opportunities for Azerbaijan to modernize its energy infrastructure. Huawei’s participation in renewable energy corridors and digital energy initiatives exemplifies the depth of bilateral cooperation and mutual benefit.
The memorandum signed during the Belt and Road Forum in November 2024 between Azerbaijan’s Ministry of Energy and China’s National Energy Administration further expanded the scope of energy cooperation. The agreements cover electricity, renewables, oil, gas, and petrochemicals, as well as provisions for organizing joint forums, training programs, and knowledge exchange initiatives. This comprehensive framework ensures that both nations can leverage their strengths to achieve shared objectives in the energy sector.
Azerbaijan views China as a cornerstone partner in its green energy transition. By relying on Chinese expertise and advanced technologies, Azerbaijan is positioning itself as a regional leader in renewable energy and sustainability. The ongoing partnership not only supports Azerbaijan’s ambitious renewable energy goals but also contributes to global efforts toward a greener, more sustainable future.
Looking ahead, the collaboration between Azerbaijan and China holds immense potential. As both nations continue to deepen their ties, the focus will remain on delivering innovative solutions, expanding investment opportunities, and fostering sustainable development. The shared vision of creating a robust, green energy sector underscores the strategic importance of this partnership and sets a strong foundation for continued growth in the years to come.
