Azerbaijan, which attracted the attention of the great powers in the South Caucasus with its strategic location and natural wealth and turned into the shining star of the region as a result of all the struggles for independence, is today turning into an energy hub in the Caspian region. A diversified energy policy not only provides Azerbaijan with great economic and political gains in the face of global threats, but also plays an important role in ensuring the energy security of allied countries as well as Europe. Thanks to this policy, the Caspian Basin is turning into an attractive center of cooperation for Asian and European countries.
In the near future, Azerbaijan is systematically working on the realization of the “green energy” concept and the effective use of its energy potential both in the liberated territories and in Nakhchivan. Significant investments made by the country over the last 30 years serve to improve economic, trade, transportation and logistics links between Europe, the Black Sea, the Caucasus, the Caspian and Central Asian regions.
Azerbaijan, which prefers cooperation over regional competition, has strengthened its position in the international arena, with the Republic of Türkiye being its biggest supporter. In this context, a number of trilateral cooperation mechanisms have emerged in the region: Azerbaijan-Georgia-Turkey, Azerbaijan-Iran-Turkey, Azerbaijan-Turkmenistan-Turkey and Azerbaijan-Russia-Turkey.
Turkey plays a major role in the transfer of Azerbaijan’s energy resources to the West, which is important for strengthening bilateral relations. One of the projects that crowns Azerbaijan and Türkiye’s cooperation in the field of energy is the TANAP (Trans-Anatolian Gas Pipeline) project. TANAP (Trans-Anatolian Gas Pipeline) has significant economic value due to its potential to transport natural gas extracted not only from the Shahdeniz field but also from other gas fields on Azerbaijani territory. In addition, the TAP (Trans Adriatic Gas Pipeline) project makes a significant contribution to the diversification of the European Union’s (EU) energy resources by creating the shortest and most direct route for natural gas exports from Azerbaijan to European markets.
Azerbaijan and the EU are seen as strategic energy partners. For the EU, which wants to ensure security of energy supply and reduce its energy dependence on Russia, the Azerbaijani alternative offers political and economic advantages. Despite the turbulent military and political processes in the world and the region, Azerbaijan has managed to prove itself as a “reliable partner” in the eyes of its allies. Azerbaijan has achieved this success thanks to the political stability prevailing in the country and the timely fulfillment of its obligations.
During his speech at the VI International Russian Energy Week Forum in Moscow, Azerbaijani Energy Minister Parviz Shahbazov said the following:[1]
“The complete phase-out of oil and gas is not a short-term solution to the transformation of the current energy system, which is 85% hydrocarbons and 55% oil and gas. The energy transition is a long-term process that takes into account energy security, affordability and environmental sustainability. To achieve a balanced energy system, it is important to expand the use of renewable energy sources at the same time, without questioning the need to continue investments in the oil and gas sector. It is the countries that have ensured energy security for themselves and their partners that can implement a correct and rational energy transition policy.”
Considering the political maturity with which the Azerbaijani authorities have responded to the debate between Russia and the West, which believes that the green revolution is based on the idea of a rapid phase-out of oil and gas and that this idea is supported by the EU, it is possible to understand how the country’s energy policy is moving along a diplomatic line in regional and global terms.
Thanks to Azerbaijan’s successful energy policy, the realization of the construction of the Trans-Caspian gas pipeline is also promising. Thus, natural gas produced in the Central Asian republics will be transported to Europe through Azerbaijan and the infrastructure created by Azerbaijan. Therefore, Azerbaijan will gain not only economic gains but also political guarantees.
As a result, Azerbaijan, as an oil and gas country with significant transit opportunities, also benefits from the export of both electricity and hydrocarbon resources. As the demand for energy in industry and everyday life increases worldwide, so does the need for Azerbaijan’s transit and diverse energy resources. Thus, the energy sector takes the first place after peace and stability in overcoming the crisis of energy, food and raw material shortages the world is facing. This makes Azerbaijan’s energy policy an alternative for Asian and European countries.
[1] “Министр энергетики Азербайджана рассказал на «Российской энергетической неделе» о диверсификации энергетических рынков”, Azertag, https://azertag.az/ru/xeber/ministr_energetiki_azerbaidzhana_rasskazal_na_rossiiskoi_energeticheskoi_nedele_o_diversifikacii_energeticheskih_rynkov-2784730, (Date of Accession: 12.10.2023).
