February 25, 2026

Azerbaijan, Iran Hold High-Level Talks to Expand Energy Cooperation and Electricity Trade

Azerbaijan, Iran Hold High-Level Talks to Expand Energy Cooperation and Electricity Trade

Baku, The Gulf Observer: Azerbaijan and Iran have held high-level discussions aimed at advancing joint energy projects and expanding electricity trade between the two countries, according to Azerbaijan’s Ministry of Energy.

The meeting brought together Azerbaijan’s Energy Minister Parviz Shahbazov and a delegation led by Farzaneh Sadegh, Iran’s Minister of Roads and Urban Development and Co-Chair of the Intergovernmental Commission on Economic Cooperation between Azerbaijan and Iran.

Officials highlighted the long-standing friendship and partnership between Azerbaijan and Iran, noting that their strong historical ties have paved the way for a new phase of development across multiple sectors. Energy was underscored as a central pillar of bilateral cooperation, with the 17th session of the State Commission on Economic, Trade, and Humanitarian Cooperation reflecting the strategic importance of collaboration in this field.

Discussions focused on joint initiatives, including the development of the Khudafarin, Qiz Qalasi, and Ordubad hydroelectric power stations, as well as the expansion of cross-border electricity exports. Both sides agreed to strengthen coordination to accelerate the implementation of these ongoing hydropower projects.

According to Azerbaijan’s State Statistical Committee, in 2025 Azerbaijan exported 37.23 million kilowatt-hours (kWh) of electricity to Iran, generating revenue of $1.058 million. This represents a 2.2 percent increase in both volume and value compared with 2024.

Conversely, Iran exported 34.506 million kWh of electricity to Azerbaijan in 2025, worth approximately $980,000. This marks a 1.3 percent decrease in both volume and value compared with the previous year.

The meeting reflects a shared commitment to enhancing energy cooperation, accelerating hydropower development, and expanding electricity trade, further strengthening the economic and strategic partnership between the two neighboring countries.