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World Bank: Renewable energy will stimulate economic growth in Azerbaijan

08 October 2025 10:26 (UTC +04:00)

"Azerbaijan's transition to renewable energy will stimulate economic growth and employment," APA-Economics reports, citing a report by the World Bank.

It was noted that accessible and affordable energy infrastructure forms the basis for job creation and economic transformation. In the Europe and Central Asia (ECA) region, affordable and reliable energy supply is essential for realizing productive employment opportunities. The region’s energy transition differs from that of other areas, as countries face diverse challenges. Demographic differences, geographical location, natural resources, political context, and initial conditions require a country-specific approach.

The World Bank emphasized that the South Caucasus could become an energy corridor for the region. Specifically, Georgia’s hydropower capacity, Azerbaijan’s shift to renewable energy, and Armenia’s solar energy potential may serve as key drivers in stimulating regional economic growth and employment.

It was also added that the coal phase-out process in Central and Eastern Europe requires the transition of workers to new sectors and an increase in investments in renewable energy infrastructure. This, in turn, can create new employment opportunities. In Central Asia, population growth necessitates the expansion of energy supply. Here, hydropower potential and solar resources come to the forefront, while natural gas plays an important transitional role in Kazakhstan and Turkmenistan.

“In some countries, nuclear energy can play a complementary role alongside other sources. This differentiated approach will ensure that investments in the energy sector are directly converted into productive employment,” the report states.

It should be noted that the World Bank has projected economic growth at 1.9% for this year, 1.8% for 2026, and 1.7% for 2027.
Compared to previous forecasts, the World Bank has revised its economic growth outlook downward by 0.6–0.7 percentage points.