The current state of the gas industry and the emerging green energy sector in Azerbaijan

Abstract

Azerbaijan is at the crossroads of its energy development, weighing its traditional position as a leading gas exporter against the increasing trend towards renewable energy. This article examines the interaction between Azerbaijan’s fossil fuel industry and its nascent green energy sector, looking at its contribution to European energy security and the shift towards sustainability. This research evaluates the importance of the Southern Gas Corridor in providing EU gas diversification, especially during geopolitical transformations, and measures the renewable energy potential of Azerbaijan. Based on PESTEL and SWOT assessments, the article analyzes Azerbaijan’s renewable and gas industries with implications of strength, weaknesses, challenges, and opportunities. The analysis indicates that although gas exports are crucial for Europe’s immediate energy security, Azerbaijan is also investing in wind power and solar energy to become a green energy hub. Its participation in the EU–Black Sea – Caspian Sea Green Energy Corridor is particularly significant as an indicative change towards renewable electricity exports. The research determines that natural gas will be the central pillar of Azerbaijan’s economy in the near future, but the nation is preparing the ground for a future based on renewable energy. Breaking through the infrastructure issues, attracting investment, and coordinating policies with international decarbonization targets will be decisive. If well managed, Azerbaijan can not only become a stable source of energy but also a regional clean energy leader, achieving long-term economic and environmental stability. © 2025 «OilGasScientificResearchProject» Institute. All rights reserved.