Baku and Beijing are making "green" plans

Azerbaijan and China are expanding cooperation in the field of renewable energy. China has vast experience and advanced green technologies, while Azerbaijan has significant potential for the development of renewable energy and clearly defined tasks in this area.

The Agency for the Development of Economic Zones under the Ministry of Economy of the Republic of Azerbaijan (IZIA) and the Chinese company China Datang Overseas Investment Co. A memorandum of understanding on the establishment of the Green Energy Industrial Park in Azerbaijan was signed on Monday.

The document was signed within the framework of the First Azerbaijan International Investment Forum in Baku.

It should be noted that China Datang Corporation Limited is a state-owned energy company, one of the "big five" electric generating companies in China and one of the largest companies in the country. China Datang Corporation's energy and coal assets are located in 31 regions of China, as well as abroad in countries such as Myanmar, Laos, Cambodia, Singapore, Indonesia and Uzbekistan.

In June of this year, during his visit to China, Azerbaijani Energy Minister Parviz Shahbazov met with Liu Jun, Chairman of China Datang Corporation. During the meeting, a Memorandum of Understanding on cooperation in the development of a green energy corridor was signed between the State Agency for Renewable Energy of the Republic of Azerbaijan and China Datang Overseas Investment Co. Ltd. The memorandum provides for cooperation in order to ensure safe connection of renewable energy capacities to the electric grid and reliable and stable transmission of this energy.

Cooperation in the field of renewable energy sources (RES) has become one of the main items on the agenda between Azerbaijan and China. During the April state visit of Azerbaijani President Ilham Aliyev to Beijing, a number of documents in this area were signed. In a joint statement by the leaders of the two states, it was noted that the parties express their readiness to actively develop cooperation in the field of renewable energy, contributing to the energy transition, sustainable socio-economic development of the two countries, and are ready to jointly promote the formation of a global partnership in the field of clean energy.

At the same time, the following investment agreements were signed: an investment agreement between the Government of the Republic of Azerbaijan and Universal Solar Azerbaijan LLC on the Gobustan solar Power plant project with a capacity of 100 MW; an Executive Agreement between the Ministry of Energy of Azerbaijan and China Energy Overseas Investment Co. Ltd. on the evaluation, development and implementation of an offshore wind energy project; an Executive agreement between the Ministry of Energy of Azerbaijan, companies China Datang Overseas Investment Co. Ltd. and SOCAR Green LLC on the evaluation, development and implementation of the 100 MW floating solar power plant and 30 MW battery energy storage system on Lake Boyukshor; Memorandum of Understanding between the Ministry of Energy of Azerbaijan, SOCAR Green LLC, and China Datang Overseas Investment Co. Ltd and PowerChina Resources Limited on the development of a 2 GW offshore wind energy project in the Azerbaijani sector of the Caspian Sea. Etc.

Contacts in the field of renewable energy cooperation between Azerbaijan and China began even before the COP29 climate conference. The Chinese side expressed interest in expanding investments in wind and solar energy projects in Azerbaijan. Chinese companies have shown interest in producing wind turbines and solar panels in our country, and have also expressed their willingness to invest in the transit of electricity from Asia to Europe.

These intentions began to take shape in specific arrangements within the framework of COP29. Azerbaijan has signed several agreements with Chinese companies aimed at developing renewable energy in the country. This is an agreement between the Chinese company China Energy Overseas Investment Co. Ltd. and SOCAR Green on a 160 MW solar power plant (SES) construction project in the Fizuli region, as well as memoranda of cooperation in the field of renewable energy with China Energy Overseas Investment Co. Ltd. and China Datang Co. Ltd. The signed documents provide for investments in renewable energy projects, as well as the establishment of a Center for research and development in this field in Azerbaijan.

During the visit of the Azerbaijani delegation headed by Deputy Prime Minister Shahin Mustafayev to Chengdu, China, on September 10, an investment agreement was signed in China between the Alat Free Economic Zone and the Chinese company Sichuan Sunsync Photovoltaic Technology. The Chinese will build an enterprise for the production of solar panels in the free economic zone of Alat. Solar panels with an annual production capacity of 3 GW will be produced at three production facilities that will be created by the Chinese company. In addition, there are also silicon crystals and components. The solar panels produced in Alaska will be used in the construction of a solar power plant, which Sichuan Sunsync Photovoltaic Technology plans to build in Alaska. The enterprises' products will be exported.

"Our immediate goal is to generate 2 GW of solar and wind energy by 2027, and to increase this volume to 6 GW by 2030, which will be a kind of revolution in Azerbaijan's energy portfolio. I would like to add that investors, including foreign and local ones from Azerbaijan, who invest in these projects, use Chinese technologies. For example, solar panels are manufactured in China. Our team is currently working on storage capacity, and we have discovered that the best batteries are made in China. So I can only congratulate the Chinese manufacturers on this amazing success, because it's both quality and price. And no one can compete," the Azerbaijani President said in an interview with the Chinese CGTN TV channel during the World Forum in Davos in January this year.

China has become a leader in renewable energy technologies. As the head of the State Administration for Energy (NEA) told reporters at the end of August Wang Hongzhi, the country already accounts for more than 40 percent of the total number of global patents in this field. Over the past five years, China has set a number of world records, from photovoltaic conversion to offshore wind power, and has also come out on top in terms of new energy storage systems. The country has also created the largest network of charging infrastructure for electric vehicles: there are two chargers for every five cars. The share of renewable energy has also increased, from 40 to 60 percent.

China is currently an exporter of technologies for the production of solar and wind energy, related installations and components.

According to the National Energy Administration of China (NEA), as of June 2025, for the first time in the history of renewable energy use, wind and solar energy combined exceeded coal in installed capacity. According to Rystad Energy forecasts, by 2026, solar energy will surpass coal as the main source of energy in China. And in 2024, China set a record by generating 293 GW of wind and solar energy.

Azerbaijan has big plans for offshore wind energy and considers China as its main partner. Chinese corporations can also make a significant contribution to the development of energy corridors.

In short, Azerbaijan was not mistaken in choosing China as a partner.