Azerbaijan is undergoing a strategic shift in its energy policy, transitioning from traditional oil exports to a future centered around offshore wind and hydrogen energy—opening new avenues for energy security and international cooperation, including with NATO.
At COP29, held in Baku last year, a significant agreement was signed between Azerbaijan’s state oil company SOCAR and leading energy firms from Saudi Arabia (ACWA Power) and the UAE (Masdar) to develop around 3.5 GW of offshore wind projects. This initiative aligns with Azerbaijan’s target of generating 30% of its electricity from renewable sources by 2030, with 4 GW intended for export.
Azerbaijan’s offshore wind potential, particularly in the Caspian Sea, has positioned the country among the top four globally, according to the Global Wind Energy Council. With a capacity potential of 157 GW in the Azerbaijani section of the Caspian, the region holds substantial promise. SOCAR’s green energy division, SOCAR Green, is leading efforts in tapping into this resource.
In parallel, Azerbaijan is advancing both blue and green hydrogen production. Under a Build-Own-Operate model, Masdar is developing a 1 GW portfolio of wind and solar projects. SOCAR is also exploring blue hydrogen, derived from natural gas with carbon capture, while green hydrogen efforts—backed by the European Bank for Reconstruction and Development—aim to align with the EU’s 2050 target of 10% hydrogen in its energy mix.
This transition is not only environmentally driven but also strategic. With Russia pushing to dominate the hydrogen market, Azerbaijan’s diversification efforts offer Europe and NATO a potential partner for secure, sustainable energy alternatives. Plans for a “Southern Green Corridor” are taking shape to deliver this energy to Europe, building upon the legacy of the Southern Gas Corridor which helped reduce European reliance on Russian gas.
As Europe faces new energy and security realities, NATO’s role may increasingly include safeguarding offshore wind infrastructure, subsea electricity cables, and other critical energy assets. Past incidents, such as the 2008 sabotage of the BTC pipeline and recent Baltic Sea disruptions, underscore the growing vulnerability of energy infrastructure.
By strengthening ties with Azerbaijan and supporting its renewable energy ambitions, NATO can contribute to long-term regional stability. A more economically diversified Azerbaijan could serve as a security anchor in the Caucasus, helping to prevent the spread of proxy conflicts like those emerging in Africa between Ukraine and Russia.
As energy and security become increasingly intertwined, Azerbaijan's green energy transformation is emerging as a key component of a more resilient and sustainable future for the region and beyond.
https://renewables.az/en/news/winds-of-change-how-azerbaijan-s-energy-holds-promise-for-nato