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China Gezhouba Group and Azerbaijan's government partner to assess utility-scale solar, wind energy, and integrated smart energy system investments, targeting a 2 GW development by 2025.
The meeting between Azeri energy minister Parviz Shahbazov and Lin Shanqing, Deputy Administrator of China’s National Energy Administration, opened discussion for the two countries’ cooperation in the field of energy.
In addition to conducting research in the renewables sector, China Gezhouba Group will also assist Azerbaijan’s energy ministry in developing and implementing an efficient legal framework for renewable energy investments. It would also help establish a target system for green energy that is based on actual capacity rather than quotas.
The 2 GW of projects are expected to be developed by 2025. The MoU is part of the memorandum of understanding between China Gezhouba Group and Azerbaijan’s Ministry of Energy signed in September 2020 to strengthen the two countries’ energy ties. Azerbaijan has signed MoUs and other deals with various foreign companies, including ACWA Power, Masdar, and BP, for renewable energy projects totaling 25 GW in the past two years.
The country’s potential for renewable energy is estimated at about 200 GW. The China Gezhouba Group Overseas Investment Co. Ltd makes investments in a variety of industries, including real estate, building, and cement.
According to recent reports, Azerbaijan is making significant progress with its renewable energy development plans. The International Renewable Energy Agency estimated that the country has the potential to generate an estimated 10 GW of solar power and 7 GW of wind energy. Azerbaijan is also in the process of setting up a state-owned renewable energy development agency which will be responsible for managing renewable energy projects across the nation.
The MoU with China Gezhouba Group marks yet another important step forward in Azerbaijan’s renewable energy ambitions and will help the country meet its clean energy targets. It is also expected to bring about considerable economic growth, job creation and improved energy security for the region.
The agreement with China Gezhouba Group highlights Azerbaijan’s commitment to progressive energy policy and its goal of becoming an important player in the global renewable energy markets.
This is a major milestone for both countries and will open up new opportunities for international collaboration in the renewables sector. It will also help to create an attractive environment for foreign investors, spur innovation and ensure sustainable development of clean energy sources in Azerbaijan in the years to come.
