Expert: Foreign investors maintain strong interest in renewable energy projects in Azerbaijan

The development of renewable energy sources (RES) in Azerbaijan is generating sustained interest from major foreign companies and international financial institutions, Nurlan Munbayev, a professor of econometrics and expert at the Kazakhstan Parliamentarism Foundation, told Report.

According to him, international financial institutions are currently among the key investors in RES projects in Azerbaijan: "The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank, and World Bank institutions consistently support Azerbaijan's green transition, providing not only financial resources but also expertise and mechanisms to mitigate investment risks."

Munbayev emphasized that the interest from global investment funds and energy companies is driven by the long-term prospects for exporting RES, including to Europe via emerging energy corridors. Moreover, he estimates that private capital participation will increase as projects scale up commercially.

He also noted that investments in Azerbaijan's RES sector are long-term investments with predictable returns. "Renewable energy projects typically rely on long-term electricity purchase and sale agreements, which ensure a stable cash flow over a 15-20-year horizon," Munbayev said.

For Azerbaijan, developing renewable energy means not only economic diversification but also strengthening energy security, technology transfer, and strengthening the country's position as a regional green energy hub, he noted.

He believes Kazakhstan has great interest in regional renewable energy projects initiated by Azerbaijan: "Kazakhstan and Azerbaijan are key partners in the Caspian region. Joint energy and infrastructure initiatives logically complement the development of the Trans-Caspian route and strengthen the economic ties between the two countries."

Munbayev believes that Kazakhstan's development institutions and energy companies can consider participating in renewable energy projects in Azerbaijan, primarily through strategic partnerships and exchange of experience.

Azerbaijani President Ilham Aliyev previously announced that, based on signed contracts, wind and solar power plants with a capacity of 6 gigawatts will be built in the country by 2030, and 8 gigawatts by 2032.

Investments in these projects will total at least $2.7 billion. All of this will be contributed by foreign companies and international financial institutions.