The government is targeting a 33.3 percent renewable energy share in its installed capacity by 2027. With a technical potential of 135 GW onshore and 157 GW of offshore wind in the Caspian Sea, the country has begun commissioning major solar and wind farms to meet an 8 GW target by 2032. Projects already online, including three facilities totaling 570 MW, have helped the state avoid burning an estimated 840 million cubic meters of natural gas this year alone.

Foreign direct investment exceeding $500 million from the UAE, Saudi Arabia, and China is fueling this expansion. Beyond generation, the state is investing $2.6 billion through 2027 into grid upgrades and battery storage to stabilize the network. Energy Minister Parviz Shahbazov recently confirmed that the country is also exploring nuclear energy to further broaden its power portfolio, with the International Atomic Energy Agency providing legislative guidance to support this long-term shift.