Author: Akper Novruz, Azernews
Azerbaijan’s energy sector has made remarkable achievements in 2024, balancing traditional resource revenues with an ambitious pivot towards renewable energy. The country’s dual focus on strengthening its position in the global energy market and promoting the global energy transition underscores its strategic approach to sustainable growth.
This year marked an important milestone for natural gas exports from Azerbaijan: for the first time, Azerbaijani gas was imported by the markets of Serbia, Hungary and Slovakia. This expansion brings the total number of European gas buyers to 12.
From January to November 2024, Azerbaijan exported 22.9 billion cubic meters of gas, which is 5% more than in the previous year. Europe accounted for 51% of this export, with 11.7 billion cubic meters supplied. Overall, gas production increased to 45.8 billion cubic meters, and oil and condensate production reached 26.5 million tons, with 22.2 million tons exported.
Renewable Energy and the Green Transition
Azerbaijan is actively promoting its renewable energy goals through the implementation of a comprehensive State program. In 2024, the share of renewable energy sources in electricity production increased from 11% to 14%, and the total electricity production reached 25.932 billion kWh.
- The 100-megawatt Gobustan solar power plant, awarded to China’s Universal International Holdings Limited, is expected to save 57 million cubic meters of gas and reduce 124,000 tons of carbon emissions per year.
- The 240-megawatt Shafaq solar power plant in Jabrail is scheduled to come online in 2025 as part of efforts to transform Karabakh into a fossil fuel-free economic region.
- Project “Black Sea Energy”
Azerbaijan also played a key role in the Black Sea Energy project, which aims to transfer green electricity from the Caspian region to Europe. Interest from Turkmenistan, Uzbekistan and Kazakhstan has increased this year, with Uzbekistan securing Saudi investment for the project.
Hosting COP29: a turning point
The 2024 UN Climate Change Conference (COP29) in Baku positioned Azerbaijan as a global leader in the fight against climate change. Key findings included:
- The Baku Finance Goal commits developed countries to provide $300 billion annually to developing countries to combat climate change by 2035.
- Creation of a $730 million Loss and Damage Fund scheduled to launch in 2025.
- Adoption of the Baku Roadmap for Adaptation to Global Climate Change, providing annual discussions on climate change adaptation for developing countries.
- Renewal of the Lima Gender Work Program encouraging women’s participation in climate negotiations.
- In addition to production, Azerbaijan remains the most important transit hub. The Baku-Tbilisi-Ceyhan (BTC) pipeline transported 32 million tons of oil in 2024, of which 24 million tons came from domestic sources and 4.4 million tons were in transit from Kazakhstan and Turkmenistan.
Future prospects
With ambitious plans to double gas exports to Europe by 2027, Azerbaijan is poised to further strengthen its energy leadership. International experts estimate that $18.5 billion in investment will be needed to achieve this goal, underscoring the scale of Azerbaijan’s commitment to its energy strategy.