The signing of a bilateral agreement between the Ministry of Energy of Azerbaijan and China Energy Engineering Corporation Limited (CEEC) in June 2025 represents a pivotal development in the energy diplomacy of the South Caucasus. Held in the Chinese city of Ningbo during the official visit of Azerbaijan’s Minister of Energy Parviz Shahbazov, the agreement formalizes a comprehensive strategic partnership in the field of green energy and signals a shift in regional energy architecture with broader implications for Eurasia, including Central Asia.
The agreement encompasses multiple dimensions of renewable energy cooperation. It includes provisions for joint electricity system planning and grid analysis, the implementation of solar, hydro, and offshore wind energy projects, and the establishment of a Joint Research Center for Green Energy. One of the most strategic components of the agreement is the development of so-called "green energy interconnectors" - transnational infrastructure intended to facilitate the export and integration of renewable energy across borders.
The document outlines long-term plans for the expansion of Azerbaijan’s renewable energy capacity through 2030 and beyond. Planned projects include utility-scale solar power plants in the southern regions, offshore wind farms in the Caspian Sea, and technical advisory services provided by China’s EPPEI (Electric Power Planning & Engineering Institute). These services will include energy system modeling, grid integration simulations, load forecasting, and assessments of system stability and resilience.
The significance of this agreement is both practical and symbolic. For Azerbaijan, a country traditionally reliant on oil and gas exports, this partnership indicates a strategic move toward energy diversification and sustainable development. For China, it represents another step in its global strategy of exporting green infrastructure, technology, and energy planning capabilities under the Belt and Road Initiative framework.
In this context, the potential implications for Central Asia merit close attention. The region faces similar challenges: heavy dependence on conventional energy sources coupled with growing commitments to green transition and renewable integration. Countries like Uzbekistan, Kazakhstan, and Kyrgyzstan have already articulated ambitious targets for renewable energy deployment. Azerbaijan’s model of securing Chinese capital and expertise could serve as a viable blueprint for Central Asian economies seeking technological modernization in their energy sectors. Of particular interest is the knowledge-based component of the agreement - the establishment of a joint research center and engagement of Chinese technical institutes in national grid planning. This highlights China’s role not merely as an investor, but also as a provider of analytical and institutional capacity-building. Such components could be adapted in Central Asia, where institutional frameworks for energy transition remain in development.
The geographical dimension further reinforces this dynamic. Azerbaijan’s proximity to the Caspian Sea and its borders with Kazakhstan and Turkmenistan open up the possibility of future trans-Caspian energy corridors - including "green" ones. These could complement or even compete with existing regional initiatives such as the Central Asian Power System (CAPS), positioning China as a systemic actor in the post-Soviet renewable transformation.
Finally, it is important to situate this agreement within the broader context of the global energy transition. Countries with high solar irradiance, untapped wind potential, and small hydropower resources are emerging as critical nodes in the reconfiguration of the global energy map. Azerbaijan is among the first post-Soviet states to propose a comprehensive and technologically advanced partnership with China in this sphere. Central Asian states, if they maintain political stability and openness to international capital and technical cooperation, may replicate and adapt this approach to fit their own energy security strategies.
In conclusion, the Azerbaijan–China renewable energy agreement should be viewed not only as a national development strategy, but also as a potential accelerator of regional transformation. For Central Asia, the agreement offers a case study in integrating renewable energy, upgrading grid infrastructure, and leveraging international expertise - all essential components for a resilient and diversified energy future.
* The Institute for Advanced International Studies (IAIS) does not take institutional positions on any issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of the IAIS.
