German firms outline new infrastructure and green energy plans in Baku

German energy and infrastructure heavyweights are exploring new opportunities in Azerbaijan. Their plans cover both gas supplies and renewable energy, at a time when Europe seeks to reduce its dependence on Russian fossil fuels.

Speaking at the German-Azerbaijani Connectivity Conference 2026, which was hosted by the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan) in Baku, European corporate leaders outlined concrete investment plans ranging from fossil fuels to renewable energy networks along the Middle Corridor.

The gathering brought together more than 250 participants, including over 35 guests from Germany and Azerbaijani policymakers.

A new pillar of economic cooperation

Nargis Wieck, Executive Director of AHK Azerbaijan, stressed the need to build on strong bilateral trade ties to encourage concrete investments.

Wieck told Euronews that one of the key questions was how to “deepen our economic cooperation through concrete projects”.

She also said that part of the chamber’s role involves “helping German companies become part of Azerbaijan’s economic ecosystem, and Azerbaijani companies integrate more closely into German and European value chains”.

German Ambassador Dirk Lölke noted that after President Ilham Aliyev’s recent visit to Berlin, regional connectivity could become the "second pillar" of bilateral economic relations, alongside energy cooperation.

Accelerating the green energy transition

On the energy front, Siemens Energy said it was ready to provide critical technology and expertise for Azerbaijan’s renewable energy sector and the planned Caspian-Black Sea-Europe Green Energy Corridor.

Frederik Doye, Senior Vice President for Europe at Siemens Energy, emphasised that Azerbaijan’s vast offshore wind potential positions the country as a vital energy link connecting Europe, the South Caucasus, and Central Asia.

Azerbaijan plans to develop 8 GW of wind and solar projects by 2032, according to Deputy Minister of Energy Elnur Soltanov.

He said that the priority was to develop the partnership in a number of areas, including "renewable energy, energy connectivity, energy efficiency and the broader energy transition".

"Our goal is to connect this potential to European markets through several complementary routes - the Caspian-Black Sea-Europe Green Energy Corridor, the Central Asia-Azerbaijan Corridor, and westward links to Türkiye and Europe via Georgia and Nakhchivan," he added.

Beyond generation, German technology providers are setting their sights on power grid modernisation, battery energy storage systems (BESS), and electric vehicle charging infrastructure.

Julia Egel, Head of Stakeholder Engagement at AHK Azerbaijan, noted that German firms are perfectly positioned to support Azerbaijan's mandate to boost renewable power generation. The country's stated target is to increase the share of renewables in its installed electricity generation capacity to 30% by 2030.

Egel also announced an upcoming trade mission of German energy companies to Azerbaijan, with plans for targeted business-to-business meetings and potential German pavilions at next year's Baku Energy Week.

Securing gas supplies

Alongside renewable energy projects, German companies are looking to secure gas supplies. German gas importer VNG AG said it was interested in a long-term supply agreement with the State Oil Company of Azerbaijan (SOCAR) lasting 15 to 20 years.

The firm aims to significantly boost current import volumes to stabilise European markets in the short term before transitioning to fully decarbonised systems. The company also said it was interested in working more closely with SOCAR on biomethane, renewable energy, hydrogen and decarbonised fuels.

Separately, German wind turbine manufacturer Enercon is exploring the possibility of setting up local production in Azerbaijan using German financing and technology.

"We are currently exploring investment opportunities in Azerbaijan and how we, as a wind turbine manufacturer, can become active here," company representative Tayfun Bayraktar said on the sidelines of the conference.

While the company has not yet received a formal proposal, Bayraktar noted that successful talks could eventually lead to a local manufacturing facility with export potential.

He added that the size of any investment would depend on demand, with a single 7 MW wind turbine currently costing around €7 million to €8 million.

Digitalising the Middle Corridor

Beyond energy, the conference also focused on logistics and digital infrastructure.

As Azerbaijan pushes to expand its role along the Middle Corridor, the German business community is stepping up its logistical support. Azerbaijan expects total transit cargo passing through the country to reach 30 million tonnes by 2030.

Deputy Minister of Economy Samad Bashirli presented the Alat Free Economic Zone as a platform for German manufacturers to establish export-oriented production, citing the country's stable macroeconomic environment.

Deputy Minister of Digital Development and Transport Rashad Hasanov emphasised Azerbaijan's ambition to become a regional base for global tech firms.

He underlined the importance of digitalisation in improving the Middle Corridor's efficiency and strengthening Azerbaijan’s role as a bridge between Europe and Asia.