Azerbaijan strengthens energy diplomacy and green transition at Baku Energy Week 2025

Azerbaijan continues to implement an effective energy strategy and diplomacy, focusing on increasing the production of energy resources, expanding the use of renewables, and broadening its export geography. From June 3–5, 2025, the country hosted Baku Energy Week 2025, an integrated platform that brought together the 31st International Caspian Oil and Gas Exhibition, the 14th Caspian International Clean Energy Exhibition, and the 31st Baku Energy Forum. This flagship event plays a pivotal role in energy trade, green energy, and technology. The Baku Energy Week also underscored Azerbaijan’s strategic role in energy diplomacy, with pipelines linking the Caspian Sea to Europe via the Southern Gas Corridor, writes Shahmar Hajiyev, head of department at the Center of Analysis of International Relations.

This year’s event attracted 267 companies from 39 countries, including Germany, Türkiye, the USA, UAE, China, the UK, and Japan, etc. Notably, 35% of the exhibitors were first-time participants, demonstrating growing international interest. Approximately 70% of exhibitors were foreign companies, while 30% represented local enterprises, underlining both Azerbaijan’s international engagement and the active participation of its domestic business community.

The State Oil Company of the Republic of Azerbaijan (SOCAR) served as the general partner of Baku Energy Week. Prominent partners and sponsors included ABB, ACWA Power, Azfen, AZEL Systems LLC, Baku Steel Company, bp, CIM, Gap İnşaat, HMS Group, HUAWEI, Inpex, INTI, iMotors, Kolin İnşaat, Masdar, MOL Group, MVM, NewMed Energy, Saipem, Pasha Bank, SLB, Türkiye Petrolleri AO, TotalEnergies, Tekfen Inşaat ve Tesisat, Ural Steel, and XRG. Additionally, the Boston Consulting Group served as the intellectual partner, while Deloitte was the advisory partner.

During the international event, global energy leaders discussed issues related to energy security, Azerbaijan’s renewable energy targets, critical energy infrastructure, and the export of energy resources to maintain both regional and global energy security.

President of the Republic of Azerbaijan, Ilham Aliyev, delivered the opening speech. He highlighted that natural gas exports reached 25 billion cubic meters (bcm) in the previous year, and the country plans to increase production based on existing contracts and ongoing projects. President Aliyev also emphasized Azerbaijan’s ambitious green agenda, stating that by 2030, based on signed contracts and investment commitments, the country aims to achieve 6.5 gigawatts (GW) of renewable energy installed capacity, accounting for over 35% of its total energy grid.

One of the main priorities of Azerbaijan’s energy policy is the expansion of natural gas export geography. The countries such as Italy, Türkiye, Georgia, Slovakia, Greece, Bulgaria, Romania, Hungary, Serbia, Croatia, Slovenia, and North Macedonia are buyers of Azerbaijani gas. Germany recently joined the list through a 10-year contract between SOCAR and Securing Energy for Europe (SEFE). The agreement will gradually increase annual exports to Germany up to 1.5 bcm, supporting infrastructure investments and enhancing Europe’s energy security.

Today, Azerbaijan’s energy strategy and diplomacy have transformed the country into a reliable energy partner for many nations. Its growing focus on renewable energy aligns with global efforts for long-term energy security and green transition. Baku Energy Week continues to serve as a strategic platform for building essential energy partnerships.

In a significant development during the event, bp, SOCAR, and TPAO signed agreements enabling TPAO to join the Production Sharing Agreement (PSA) for the Shafag-Asiman offshore block in the Caspian Sea. Additionally, ExxonMobil signed an agreement with SOCAR to explore onshore oil production.

Following Azerbaijan’s hosting of COP29 in Baku, the country has intensified its green energy initiatives. The 14th Caspian International Clean Energy Exhibition spotlighted innovations in renewables, decarbonization, electric vehicles (EVs), and AI-driven technologies. The goal is to generate 6.5 GW of additional renewable energy capacity by 2030, further diversifying the national energy mix.

Key cooperation in renewables includes joint projects between SOCAR, Masdar, ACWA Power and bp. In 2023, Masdar completed the 230 MW Garadagh Solar Power Plant. ACWA Power is developing a 240 MW wind farm in the Khizi and Absheron regions, which will annually generate 1 billion kWh of electricity, give an opportunity to save 220 million cubic meters of natural gas per annum, prevent 400,000 tons of carbon dioxide emissions. Also, a final investment decision was made for the 240 MW Shafag Solar project, a joint venture of bp, SOCAR Green, and the Azerbaijan Business Development Fund (ABDF), with construction set to begin in the Jabrayil district.

Over the past year, cooperation between China and Azerbaijan in renewable energy has also deepened. During COP29, Memoranda of Understanding (MoUs) were signed with PowerChina Resources Limited and TBEA Co. Ltd. for projects in solar PV, wind power, pumped hydro-storage (PHS), and battery energy storage systems (BESS). These collaborations also include training and technology exchange programs. China Energy is currently working on a 1 GW offshore wind energy project in the Caspian Sea and has invested in solar energy in the liberated Fuzuli district.

All these renewable initiatives support Azerbaijan’s efforts to develop the Caspian Green Energy Corridor. The Black Sea Submarine Cable (BSSC) project - launched in partnership with Georgia, Romania, and Hungary, and supported by the European Union - will strengthen transregional energy cooperation and link Central Asia, the South Caucasus, and Europe. It will also tap into Kazakhstan’s wind and Uzbekistan’s solar potential to export green electricity.

In summary, Baku Energy Week is a critical gathering of high-ranking officials and energy sector stakeholders. It showcases Azerbaijan’s evolving energy policy, which positions the country as a regional energy hub for both hydrocarbon and green energy exports. With this in mind, strong regional alliances remain essential for the successful implementation of future energy projects.

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