Moody’s: Azerbaijan emerges as regional leader in renewable energy

Growing foreign investor interest in Azerbaijan’s renewable energy sector will be a key driver in meeting government targets, Moody’s said in a report.

The document notes that Central Asian and South Caucasus countries have in recent years pursued market liberalization, subsidy cuts and unbundling of utilities into generation, transmission and distribution companies, alongside new regulators and PPP frameworks with standardized power purchase agreements.

Moody’s highlighted that Azerbaijan and Uzbekistan have become regional leaders in renewables. Ahead of COP29, Azerbaijan raised its green energy target to 35.5% of installed capacity by 2030, with 2,250 MW of new solar and wind projects planned.