Strategic Targets for Azerbaijan’s Energy Transformation
The official opening ceremony of the 240-MW “Xizi–Absheron” Wind Power Plant, constructed in Baku by the Saudi Arabian company ACWA Power, has taken place. This project is considered an important milestone in the formation of new generation capacities within Azerbaijan’s cooperation with leading international investors in the field of renewable energy sources (RES). The launch of the facility represents a practical reflection of the strategic approach to energy transformation articulated by Ilham Aliyev in his interview with local television channels on 5 January 2026.
The Head of Sector at the Monitoring and Evaluation Department of the Center for Analysis of Economic Reforms and Communication (CAERC), Gültac Ahmadzada-Tapdigzade, gave an interview on this topic to the Iki Sahil (link to be inserted). She noted that the targets mentioned in the interview—integrating 6 GW of RES capacity by 2030 and 8 GW by 2032 into the national power grid, establishing energy storage systems, and expanding transmission capacity to 20–40 GW—require the systematic implementation of projects of this nature. Within this framework, the “Xizi–Absheron” Wind Power Plant will play a functional role in enhancing the resilience of the energy system and diversifying the generation portfolio. At the same time, the involvement of local companies in the RES sector can be viewed as a positive indicator of the formation of a new energy market in the country, increased technological competitiveness, and greater private-sector participation. As emphasized by the President, growth in RES-based electricity generation will allow for greater natural gas savings for export, highlighting the economic efficiency and energy security benefits of the green transition.
The CAERC sector head also stressed that the issues raised in President Ilham Aliyev’s interview demonstrate the consistent implementation of state policy aimed at developing renewable energy, strengthening the national energy system, and positioning Azerbaijan as a regional hub for advanced technologies in the future. In this context, the President’s remark that “if we add electricity, hydrogen, and green hydrogen, our role will become even greater” reflects a strategic vision focused not only on expanding production but also on diversifying the energy value chain and fostering new technological and innovative sectors. Recognizing the need to power Data Centers—the backbone of modern digital infrastructure—with green energy creates a strategic foundation for translating this vision into practice. In the coming years, the operation of Data Centers in Azerbaijan using renewable energy sources, the development of supercomputing and high-performance computing infrastructure, and the wide application of artificial intelligence technologies will create favorable conditions for transforming the country into a regional center of digital services and innovation, alongside its role as an energy producer. The experience of leading global technology companies with green-powered Data Centers shows that this approach enhances energy efficiency while ensuring the sustainability of the digital economy. In this regard, the initiatives proposed by the Head of State to strengthen the energy system may play a significant role in supporting digital transformation goals and the development of the AI ecosystem.
In conclusion, the commissioning of the “Xizi–Absheron” Wind Power Plant and the views expressed in the President’s recent interview demonstrate that Azerbaijan’s long-term energy transformation is being implemented through a comprehensive approach, aligned with national interests, and pursued in parallel with technology-driven development in the energy sector. The implementation of proposed mechanisms for integrating energy and digital infrastructure will significantly contribute to strengthening Azerbaijan’s position in the global innovation market, transforming energy resources into higher value-added technologies, and shaping the country as an international exporter of digital services.






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