The six documents signed in the field of energy during the official visit of Azerbaijani President Ilham Aliyev to China on April 22-24, 2025 constitute a strategic milestone where Azerbaijan’s green transformation goals and China’s vision of expanding the global energy infrastructure intersect. As a result of the meetings held in Beijing with Song Hailiang, Chairman of the Board of Directors of China Power Engineering Corporation, agreements were reached in multidimensional areas of cooperation ranging from offshore wind energy to floating solar power plants, from energy storage to national grid planning.[1]
These agreements not only mean technical capacity building, but also form the basis of a green power scenario that redefines Azerbaijan’s role in the international energy market. Combined with China’s goal of diversifying its global energy diplomacy through green investments, this cooperation could pave the way for a new axis in the Eurasian energy equation. In the post-2030 period, the impact of such partnerships will not only be limited to Azerbaijan-China relations, but may also enable a new Asian orientation in Europe’s green supply chain. The documents signed in this context have the potential to pioneer a multi-layered transformation in many areas from energy production to exports, from grid integration to strategic planning.
In this framework, technical cooperation agreements were signed for the establishment of a 100 MW solar power plant in Gobustan, the development of a 30 MW battery energy storage system integrated with a 100 MW floating solar power plant on Lake Boyukshor, the construction of a new 160 MW solar power plant in Fuzuli, the establishment of an offshore wind farm with a capacity of 2 GW in the Caspian Sea, the conduct of technical studies for the integration of renewable resources into the national transmission network and energy system planning.[2] Three of these projects are direct investment and implementation agreements, while the other three are memoranda of understanding framing strategic cooperation.
The most prominent initiative among these documents is the offshore wind power plant with a capacity of 2 GW to be established in the Caspian Sea.[3] The project is envisaged to be developed in phases. Therefore, detailed wind potential measurements will be carried out in the first phase, followed by the engineering, financing and construction phases. The technical leadership of the Chinese investors in the project makes it possible to ensure engineering quality at international standards. The high level of support provided by the Azerbaijani state institutions to the project will facilitate the rapid completion of the investment processes and the timely commissioning of the project. Accordingly, it is highly likely that the wind farm will take a leading position in Azerbaijan’s renewable energy portfolio.
The project is also directly aligned with Azerbaijan’s 2050 carbon neutrality targets. Therefore, the completion of the project could constitute an important step in fulfilling the country’s climate commitments. Accelerating the transition from fossil-based energy production to renewable resources on the Caspian Sea coast can create a radical transformation in Azerbaijan’s energy sector.
From China’s point of view, this co-operation is directly in line with its strategy to put the energy pillar of the Belt and Road Initiative into an environmentally friendly and sustainable framework. Through these projects, China’s state-owned energy engineering companies have the opportunity to integrate their technical expertise and energy technologies into the Eurasian energy infrastructure. This creates regional leadership opportunities for both Azerbaijan and China in the field of green energy.
Among the main objectives of these project initiatives is to increase the share of renewable resources in Azerbaijan’s electricity generation. Therefore, the completion of the project will significantly increase the weight of renewable resources in the country’s energy production balance. At the same time, it is envisaged that domestic energy needs will be diversified and fossil resources such as natural gas will be channeled more towards exports. The project is expected to contribute to environmental sustainability by reducing carbon emissions and, in the long term, to initiate green energy exports to the European market. Secondary benefits such as localization of energy technologies, acceleration of engineering knowledge transfer and increase in local employment will also be achieved.
For Azerbaijan, these projects serve not only the modernization of the energy system, but also the institutionalization of relations with China. This institutionalization of energy cooperation will enable Azerbaijan to deepen its strategic partnership with China and become a more influential energy actor on a regional scale. For China, such initiatives allow it to strengthen its position in global energy diplomacy by exporting green energy infrastructure to Eurasian markets. From the perspective of the countries in the region, it is possible that Central Asian states, in particular, may be inspired by this model and develop similar green energy co-operation. Thus, the Caspian Sea region could become a new centre for green energy production and multilateral energy diplomacy.
With the Caspian Sea region becoming a new centre for sustainable energy production, it is highly likely that regional environmental standards will rise and energy diplomacy will become multi-actor and sophisticated. Through these projects, China is likely to become one of the leading actors in the Eurasian energy transformation. Thus, it can be expected that traditional energy flows will be reshaped and regional energy dynamics will be diversified.
In conclusion, these energy agreements signed in Beijing are expected to create permanent and structural transformations in the South Caucasus energy relations after 2030. The 2 MW offshore wind farm to be built in the Caspian Sea will be one of the most concrete steps towards Azerbaijan’s goal of becoming a green energy exporter. Therefore, the integration of Caspian renewable energy into European electricity markets seems possible. In light of all these developments, China-Azerbaijan energy cooperation will not only strengthen the strategic relations between the two countries, but also has the potential to reshape the future of the Eurasian energy geography.
[1] “President Ilham Aliyev met with Chairman of Board of China Energy Engineering Corporation Limited in Beijing”, AZERTAC, https://azertag.az/en/xeber/president_ilham_aliyev_met_with_chairman_of_board_of_china_energy_engineering_corporation_limited_in_beijing-3520235, (Date Accessed: 29.04.2025).
[2] “Six documents on green energy cooperation signed during President Ilham Aliyev’s visit to China”, Ministry of Energy of the Republic of Azerbaijan, https://minenergy.gov.az/en/xeberler-arxivi/00515, (Date Accessed: 29.04.2025).
[3] “Chinese green energy investments in Azerbaijan”, CE Energy News, https://ceenergynews.com/renewables/chinese-green-energy-investments-azerbaijan/, (Date Accessed: 29.04.2025).
