Government Forecasts Decline in Oil and Gas Sector Share of Azerbaijan’s Economy by 2028

Global energy demand is projected to reach 374.1 million barrels of oil equivalent per day by 2050, an increase of 24% compared to 2023, according to OPEC's annual report. This is the first assessment by the organization regarding global energy consumption through the mid-21st century; previously, OPEC had published forecasts only until 2045.

“Masdar” (UAE) anticipates the liberalization of Azerbaijan's electricity market over the next four years, Murad Sadigov, head of “Masdar” Azerbaijan Energy, said  during a green finance conference in Baku. "For the Azerbaijani government, this has been a challenging transformation, as national legislation focused on regulating electricity generated from fossil fuels. However, as investors, we see certain progress. In the next four years, Azerbaijan's electricity market will be liberalized, which will provide a significant boost for the development of green energy," he said.

More than 70% of Azerbaijan's green energy capacity will be exported, stated Energy Minister Parviz Shahbazov during the Wind Energy Hamburg conference panel on "During the Energy Transition." He noted that over 70% of the green energy capacity created over the next six years (about 7 GW) will be directed toward export. A new energy supply map for Europe is currently being developed along various routes.

Total spending on the green budget is set to increase by more than 16% in 2025, including budget allocations for climate change mitigation, Azerbaijan's Prime Minister Ali Asadov  said during a Cabinet meeting discussing the state budget and consolidated budget projections for 2025 and the next three years.