German firms weigh gas and renewable energy projects in Azerbaijan

A possible long-term gas contract and renewable energy investments were among the opportunities discussed by German companies at a Baku conference. VNG AG, Siemens Energy and Enercon outlined their interests during the German-Azerbaijani Connectivity Conference 2026, organised by the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan).

VNG wants to discuss a supply arrangement of 15 to 20 years with the State Oil Company of Azerbaijan (SOCAR). The gas importer said it aims to raise import volumes significantly to help stabilise European markets before a transition to fully decarbonised systems. It also identified hydrogen, biomethane, renewables and decarbonised fuels as areas for closer cooperation with SOCAR.

Siemens Energy offered technological support and expertise for renewable energy development in Azerbaijan, including the planned Caspian-Black Sea-Europe Green Energy Corridor. Deputy Minister of Energy Elnur Soltanov said the country intends to develop wind and solar projects totalling 8 GW by 2032.

Enercon is examining whether to manufacture locally with financing and technology from Germany. Its representative Tayfun Bayraktar said the company had received no formal proposal. Talks could eventually result in a factory with export potential, he said, while demand would determine the investment's size.

AHK Azerbaijan's Head of Stakeholder Engagement, Julia Egel, announced a forthcoming energy-sector trade mission from Germany, including planned meetings between businesses. Azerbaijan's target is for renewable sources to represent 30 per cent of installed power-generation capacity by 2030.

The discussions also covered logistics and digital infrastructure. Azerbaijan expects transit cargo volumes of 30 million tonnes by 2030, while Deputy Minister of Economy Samad Bashirli highlighted the Alat Free Economic Zone as a potential base for German export manufacturers.