Ambitious Electrification Agenda: Azerbaijan, Kazakhstan, and Uzbekistan Advance With Plans to Export Electricity
In the heart of Central Asia, Azerbaijan, Kazakhstan, and Uzbekistan are stepping up their green game, forging a powerful partnership to create a sustainable energy powerhouse. This ambitious plan, aimed at linking their grids and exporting renewable electricity to the European Union, is gaining traction.
Following a significant stride in May 2025, these countries signed a memorandum of understanding (MoU) with the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to accelerate the Caspian Green Energy Corridor initiative. The shrewd move marks a significant step towards implementing the joint Green Energy Production and Transmission Project.
The feasibility study, conducted with a keen focus on establishing a legal and institutional framework for cross-border electricity trade, primarily from renewable sources, is nearing completion. The three countries' system operators are actively collaborating, working together towards a common goal.
The project garners support from the Central Asia Regional Economic Cooperation (CAREC) Program, a collaboration involving 11 countries and multiple development partners. The ambitious plan aligns with Azerbaijan’s hosting of COP29, reinforcing its commitment to regional climate leadership and economic diversification.
The primary objective of the project is to interconnect the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan, enabling efficient sharing and distribution of renewable electricity. The long-term vision is to export electricity to Europe through a green energy corridor, leveraging a proposed high-voltage cable across the Caspian Sea’s seabed and extending to Europe via the Black Sea Cable. This cascade of energy, acting as a bridge between Central Asia's vast renewable energy resources and Europe's growing demand for clean energy, would be a significant stride towards a sustainable future.
International investment and public-private partnerships are crucial for the project’s success. Discussions at the 2025 Asia Clean Energy Forum in Manila, attended by high-level Azerbaijani officials and representatives from Kazakhstan and Uzbekistan, have focused on mobilizing such investment. The ADB and AIIB are actively assessing financing models and funding avenues for the project.
The initiative enjoys strong backing from countries and organizations across the globe. Once operational, the corridor would enable Azerbaijan, Kazakhstan, and Uzbekistan to generate substantial export revenues by selling renewable electricity to the European market. The project is expected to boost energy security, reduce carbon emissions, and support economic development across the region. Revenue sharing and investment returns would be defined by future agreements and the legal framework established by the ongoing feasibility studies.
In conclusion, the joint project represents a transformative, regional move towards sustainable energy development. It promises to reduce the participating countries' reliance on fossil fuels, create new economic opportunities, and foster regional integration, all while combatting climate change. The European Union stands poised to reap the benefits of this ambitious endeavor, with the potential to secure a steady supply of renewable electricity from Central Asia.
- In light of their mutual efforts, the business community is eagerly watching the progress of the Green Energy Production and Transmission Project in Azerbaijan, Kazakhstan, and Uzbekistan, hoping for potential opportunities in news such as renewable energy contracts or investments.
- With the agreement to establish a green energy corridor, the sports world is also keeping a close eye on the development, as the project could lead to innovative collaborations in areas like sports infrastructure development using renewable energy sources, aligning with the global push towards sustainability.
