NEWS

Azerbaijan to Ease Land Rules for Renewable Energy Projects on Agricultural Areas

NOVEMBER 28, 2025

Azerbaijan is set to amend its Land Code and the Law on the Use of Renewable Energy Sources in Electricity Production, allowing agricultural land to host solar and wind projects without reclassification or loss of its original farming designation, according to the updated Nationally Determined Contribution (NDC 3.0) document cited by Report.

The power sector, responsible for 21% of national greenhouse gas emissions (14.4 MtCO₂eq in 2022), relies predominantly on natural gas. While Azerbaijan has already lowered its carbon intensity by switching from fuel oil to gas and avoiding coal, significant potential remains for efficiency gains and wider renewable energy adoption.

Rising electricity demand driven by electrification in industry, buildings, and transport could increase emissions unless countered by rapid renewable expansion. The updated NDC outlines key measures: modernizing transmission and distribution networks, scaling solar and wind capacity, deploying long-duration energy storage, and replacing open-cycle gas turbines with more efficient combined-cycle units. These steps aim to deliver substantial emission cuts while maintaining grid reliability.

Azerbaijan’s green export ambitions—both electricity and green hydrogen—tie domestic decarbonization to large-scale offshore wind, electrolyzers, and grid upgrades. Excess renewable generation will be channeled to regional markets, supported by new storage solutions.

Achieving NDC 3.0 targets will require major investment, primarily in renewable capacity and grid infrastructure. These capital expenditures are expected to yield long-term operational savings by shifting generation from costly gas plants to low-marginal-cost renewables.

https://renewables.az/en/news/azerbaijan-preparing-amendments-to-regulate-use-of-agricultural-land-for-renewable-projects