Azerbaijan open to Spanish investment in renewable energy, transport

Azerbaijan is open to cooperation with Spanish companies in renewable energy and transport, while foreign investors can also benefit from incentives offered in the Alat Free Economic Zone, Deputy Foreign Minister Elnur Mammadov said in an interview with the Spanish publication 20 Minutos, Olaylar informs.

He identified renewable energy as a key area for cooperation. According to Mammadov, Spain generates 57% of its electricity from solar and wind power, green hydrogen and hydropower, making the country a benchmark in this field.

The deputy minister emphasized that despite being an oil and gas producer, Azerbaijan recognizes the need to transition to alternative energy sources. However, he noted that the process takes time and cannot be achieved overnight.

Mammadov said Azerbaijanchr("39")s location near the Caspian Sea gives it a wind energy potential of 157 GW, the highest in Europe after the North Sea. Given Spainchr("39")s experience, he said Azerbaijan is open to Spanish companies considering various initiatives in this area.

The second key area is the development of transport links and freight services.

"We have a unique geographical position: from the Westchr("39")s perspective, we are a gateway to the East, while from the Eastchr("39")s perspective, we are a gateway to the West," Mammadov said.

He noted that Azerbaijan provides access to Central Asia, a region rich in natural resources. Developing transport links is strategically important for Azerbaijan and forms part of its efforts to diversify the economy beyond hydrocarbons.

Speaking about opportunities for Spanish companies to participate in the Middle Corridor, or Trans-Caspian International Transport Route (TITR), Mammadov highlighted the Alat Free Economic Zone, located at the countrychr("39")s largest port.

"Its activities are regulated by separate domestic rules providing privileges and incentives for foreign investors. Incentive packages vary depending on the investment sector. It promotes the development of knowledge-based industries rather than traditional sectors," he said.

Mammadov emphasized that Spain is of significant interest to Azerbaijani companies and investors, while Azerbaijan should also be viewed from a different perspective - as a stable country with one of the worldchr("39")s lowest ratios of external and public debt to GDP.