Beijing, 3 September 2024 (TDI): Chinese companies have shown a keen interest in investing in Azerbaijan’s burgeoning renewable energy sector, recognizing the country’s untapped potential in green energy.
Einar Tangen, a senior researcher at the China Globalization Centre, stated that the cooperation could cover a range of areas, including the development of green energy corridors, energy storage systems, and the production and export of green hydrogen and ammonia.
Several strategic agreements have already been made, including the construction of solar power plants with capacities of 60 MW and 100 MW in partnership with Chinese firms.
These projects highlight China’s strategic commitment to Azerbaijan’s renewable energy landscape, a priority for both countries over the past few years.
The economic aspect has been central to Azerbaijan-China relations, with China’s foreign policy focusing primarily on securing global economic interests.
The “Belt and Road” initiative, launched in 2013, exemplifies this strategy. Azerbaijan’s strategic importance to the initiative was further emphasized by the opening of the “Baku-Tbilisi-Kars” railway in October 2017, which China praised for supporting the Belt and Road project.
During President Ilham Aliyev’s 2015 visit to China, a Memorandum of Understanding was signed to jointly promote the creation of the “Silk Road Economic Belt,” setting the direction for strengthening economic and trade relations.
These green energy projects are crucial not only for enhancing energy efficiency and reducing carbon emissions but also for establishing green energy corridors and interconnectors.
The focus areas include the production and transportation of green hydrogen and ammonia, aligning with global trends toward cleaner fuels and potentially positioning Azerbaijan as a significant player in the green energy market.
Developing energy storage solutions will also be critical for managing the intermittency of renewable energy sources, thereby supporting the stability and reliability of Azerbaijan’s energy supply.
China’s Achievements in Renewable Energy
China’s achievements in renewable energy are striking, but they mask a less impressive global picture.
Excluding China’s contributions, the growth in renewable energy capacity worldwide is relatively modest.
In 2023, China was responsible for 63% of the world’s new renewable energy capacity, adding 298 gigawatts out of a total 473 gigawatts.
Even more notably, China accounted for 96% of the year-on-year increase in global renewable capacity.
Without China’s substantial additions, the net global increase for 2023 would have been only seven gigawatts more than in 2022.
