German energy and infrastructure enterprises are evaluating new investment prospects in Azerbaijan, focusing on natural gas supplies and renewable energy networks as Europe attempts to lower its reliance on Russian fossil fuels. Representatives from corporate entities gathered in Baku for the German-Azerbaijani Connectivity Conference 2026, an event organized by the German-Azerbaijani Chamber of Commerce, known as AHK Azerbaijan. More than 250 attendees participated in the sessions, which included over 35 visitors traveling from Germany alongside Azerbaijani government officials.
Nargis Wieck, the Executive Director of AHK Azerbaijan, highlighted the necessity of leveraging current bilateral trade connections to foster direct investments. Wieck stated that a central focus involved deepening economic collaboration through targeted projects, while also working to integrate German enterprises into the economic framework of Azerbaijan and helping Azerbaijani businesses connect with German and European value chains. German Ambassador Dirk Lölke pointed out that following a recent visit to Berlin by President Ilham Aliyev, regional connectivity could emerge as a secondary pillar of bilateral economic ties, operating alongside established energy partnerships.
Siemens Energy indicated its preparedness to supply essential technological capabilities and expertise for Azerbaijan's renewable energy initiatives, as well as for the proposed Caspian-Black Sea-Europe Green Energy Corridor. Frederik Doye, who serves as the Senior Vice President for Europe at Siemens Energy, stressed that the significant offshore wind potential in Azerbaijan establishes the nation as an important energy bridge linking Europe, Central Asia, and the South Caucasus. Deputy Minister of Energy Elnur Soltanov noted that Azerbaijan intends to build 8 gigawatts of wind and solar capacity by the year 2032. Soltanov stated that priority areas for the partnership include renewable energy, energy connectivity, energy efficiency, and the broader transition in energy systems, with ambitions to link this capacity to European markets via multiple routes, such as the Central Asia-Azerbaijan Corridor and westward connections to Türkiye and Europe through Georgia and Nakhchivan.
Beyond power generation, German technology suppliers are targeting infrastructure developments including power grid modernization, battery energy storage systems, and electric vehicle charging facilities. Julia Egel, Head of Stakeholder Engagement at AHK Azerbaijan, observed that German businesses are well-placed to assist Azerbaijan in meeting its objective to raise the proportion of renewables in its total installed electricity generation capacity to 30% by 2030. Egel additionally previewed an upcoming trade mission of German energy companies to Azerbaijan, which is set to feature organized business-to-business discussions and potential German pavilions at the following year's Baku Energy Week.
In addition to renewable ventures, German firms are pursuing gas supply arrangements. German gas importer VNG AG expressed interest in securing a long-term supply contract with the State Oil Company of Azerbaijan, or SOCAR, spanning a duration of 15 to 20 years. The company seeks to expand current import quantities to support European market stability in the near term ahead of a full transition to decarbonized systems, while also exploring collaboration with SOCAR in biomethane, hydrogen, renewable energy, and decarbonized fuels. In a separate development, German wind turbine manufacturer Enercon is investigating the feasibility of establishing domestic production operations in Azerbaijan supported by German technology and financing. Tayfun Bayraktar, a representative for the firm, mentioned that the company is examining investment paths and potential local manufacturing with export capabilities, noting that a single 7-megawatt wind turbine currently requires an expenditure of approximately €7 million to €8 million, with final investment scale dependent on market demand.
Discussions at the conference also addressed logistics and digital infrastructure in relation to the Middle Corridor. Azerbaijan anticipates total transit cargo moving through the country will reach 30 million tonnes by 2030, prompting increased logistical support from the German business community. Deputy Minister of Economy Samad Bashirli highlighted the Alat Free Economic Zone as a designated hub for German industrial firms to set up export-focused manufacturing operations, pointing to the macroeconomic stability of the country. Furthermore, Deputy Minister of Digital Development and Transport Rashad Hasanov underscored Azerbaijan's goal of serving as a regional base for international technology companies, emphasizing that digitalization remains critical to enhancing the efficiency of the Middle Corridor and solidifying the country's position as a connection between Europe and Asia.
