Monday, 12 October 2026
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EconomyPublished: 12 October 2026 at 15:59

German firms outline gas, infrastructure and green energy plans in Baku

At the German-Azerbaijani Connectivity Conference in Baku, German companies presented investment plans in Azerbaijan, from gas supply to wind power and logistics. Europe is seeking to reduce its reliance on Russian fossil fuels.

Foto: Euronews Business

German energy and infrastructure companies set out concrete investment plans at the German-Azerbaijani Connectivity Conference 2026 in Baku, the capital of Azerbaijan. The plans cover gas supplies, renewable energy and logistics along the Middle Corridor, a trade route linking Europe and Asia via the South Caucasus. They come as Europe looks to cut its dependence on Russian fossil fuels. The event was organised by the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan) and drew more than 250 participants, including over 35 guests from Germany and Azerbaijani officials.

A new basis for cooperation

Nargis Wieck, Executive Director of AHK Azerbaijan, said strong bilateral trade ties should be used to encourage concrete investments. German Ambassador Dirk Lölke noted that, following President Ilham Aliyev's recent visit to Berlin, regional connectivity could become a second pillar of bilateral economic relations alongside energy cooperation.

Green energy

Siemens Energy said it is ready to supply technology and expertise for Azerbaijan's renewable energy sector and the planned Caspian-Black Sea-Europe Green Energy Corridor. Deputy Minister of Energy Elnur Soltanov said Azerbaijan plans to develop 8 GW of wind and solar projects by 2032. The country's target is to raise renewables to 30% of installed electricity generation capacity by 2030. German technology providers are also eyeing power grid modernisation, battery energy storage systems and electric vehicle charging infrastructure. Julia Egel of AHK Azerbaijan announced an upcoming trade mission of German energy companies to the country.

Gas supplies and wind turbines

German gas importer VNG AG wants a 15–20-year supply agreement with the State Oil Company of Azerbaijan (SOCAR) and aims to significantly increase import volumes. Wind turbine manufacturer Enercon is exploring local production in Azerbaijan using German financing and technology. No formal proposal has been received yet, and the size of any investment would depend on demand; a single 7 MW turbine currently costs around €7–8 million.

Digitalising the Middle Corridor

Azerbaijan expects transit cargo through the country to reach 30 million tonnes by 2030. Deputy Minister of Economy Samad Bashirli presented the Alat Free Economic Zone to German manufacturers seeking export-oriented production, while Deputy Minister of Digital Development and Transport Rashad Hasanov stressed the role of digitalisation in making the corridor more efficient.

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