The 29th United Nations Climate Change Conference (COP29), held in Baku from November 11–22, 2024, has underscored the critical role of Azerbaijan and Kazakhstan in advancing Caspian Sea regional energy transitions. Both countries leveraged their positions along the Middle Corridor to present ambitious renewable and nuclear energy strategies.
Azerbaijan: Renewables and the Middle Corridor
Azerbaijan, the host and chair of COP29, has positioned itself as a renewable energy connector between Central Asia and Europe. Its energy strategy reflects a pragmatic approach to transitioning from hydrocarbons, which accounted for 88% of government revenues in 2023, to a diversified portfolio incorporating solar, wind, and hydropower.
Azerbaijan has prioritized key renewable energy projects to align with its goal of achieving a 30% renewable share in its electricity mix by 2030. Among these is the operational Garadagh Solar Power Plant, a 230-megawatt (MW) facility developed by the UAE’s Masdar, which generates 500 million kilowatt-hours (kWh) annually. Complementing this is the planned Alat Solar Project, a 400-MW solar installation expected to be operational by 2027. These projects aim to bolster domestic electricity supply and expand Azerbaijan’s capacity to export renewable energy.
The Caspian Offshore Wind Initiative, backed by the European Bank for Reconstruction and Development (EBRD), seeks to harness the Caspian Sea’s favorable wind conditions. A 1-gigawatt (GW) wind farm is under preliminary study, with construction anticipated to begin by 2026. This project could transform Azerbaijan into a renewable energy hub for the Middle Corridor, particularly as Europe reduces its dependency on Russian energy.
Kazakhstan: Nuclear Ambitions and Renewable Diversification
Kazakhstan’s energy strategy focuses on nuclear power and renewables, driven by the need to reduce coal dependency, which still accounts for two thirds of its electricity generation. The government’s approval of its first nuclear power plant, following a nationwide referendum in October 2024, is central to this strategy.
The planned nuclear reactor, located near Lake Balkhash, will generate 1.2-GW of electricity, replacing approximately 20% of coal-fired generation. This initiative complements Kazakhstan’s status as the world’s largest uranium producer, supplying over 40% of global demand and generating $3.6 billion in export revenues in 2023. Potential consortium members for the project include South Korea’s KEPCO, France’s Orano and EDF, China’s CNNC, and Russia’s Rosatom, although economic-sanctions issues complicate Russia’s involvement in the nuclear sector.
Kazakhstan is simultaneously scaling up renewable energy projects, with several key initiatives underway. The Zhanatas Wind Farm, operational since 2022, produces 100-MW of power, and the Shelek Solar Park, a 200-MW solar facility near Almaty, is expected to come online in late 2025. Together, these projects aim to increase renewables to 15% of Kazakhstan’s electricity mix by 2030, quintupling the level from 2023.
The Trans-Caspian Electricity Cable Project
At the COP29 conference, Azerbaijan and Kazakhstan, along with Uzbekistan, announced an ambitious trans-Caspian electricity cable project through an underwater transmission system. This infrastructure initiative, estimated to cost $2.5 billion, seeks to establish an electricity corridor linking Central Asia with European markets, representing a significant step in regional energy integration. The project would run 400 kilometers under the Caspian Sea and connect Azerbaijan’s Alat Free Economic Zone to Kazakhstan’s Aktau port.
Expected to be completed by 2028, with a plan to facilitate the transmission of up to 2-GW of electricity, the project will contribute to existing Middle Corridor infrastructure, which already supports trade and energy flows between Central Asia and Europe. The cable would link Azerbaijan’s electricity grid to Kazakhstan’s network, with Uzbekistan connecting through Kazakhstan’s infrastructure. For Azerbaijan, it would reinforce the country’s role as an energy hub between Central Asia and Europe; for Kazakhstan and Uzbekistan, it would be opportunity to monetize their growing electricity generation capacity, in line with their expanding renewable energy sectors.
The project faces unique engineering challenges due to the Caspian Sea’s marine environment. A submarine cable requires specialized high-voltage direct current (HVDC) technology to manage depths of several hundred meters. HVDC is preferred over alternating current (AC) due to its lower transmission losses over long distances, reducing the number of cables required. Multiple converter stations will transform AC power to DC for transmission, and back to AC for grid integration.
All three countries will need significant grid reinforcement, including new substations, AC transmission lines, and sophisticated control systems to manage power flow and ensure grid stability. Kazakhstan and Uzbekistan must strengthen their north-south transmission backbone to channel power to the Caspian connection point, while Azerbaijan will require robust interconnection infrastructure to manage power flows toward European markets.
This initiative forms part of broader efforts to enhance connectivity through the Middle Corridor (also called the Trans-Caspian International Transport Corridor, TITR). It aligns with European Union objectives to diversify energy sources and reduce dependence on Russian energy imports, making the project highly relevant in contemporary energy security discussions. By linking renewable energy generation across the Caspian, the project underscores Azerbaijan’s role as a bridge between resource-rich Central Asia and energy-demanding Europe. It also contributes to the broader Middle Corridor objectives, including reducing transit times for goods and energy, enhancing regional connectivity, and providing alternatives to China-dominated infrastructure.
Conclusion and Prospect
Both Kazakhstan and Azerbaijan face significant financial and geopolitical constraints in advancing their energy strategies. The Caspian electricity cable, for example, requires substantial investment from multilateral institutions, such as the European Investment Bank (EIB) and the Asian Infrastructure Investment Bank (AIIB). While Azerbaijan has allocated $1.2 billion for grid modernization, Kazakhstan’s nuclear program demands extensive international collaboration, which is complicated by sanctions and geopolitical rivalries.
Azerbaijan’s focus on renewables positions it as a critical bridge between Central Asia and Europe, while Kazakhstan’s nuclear and renewable investments reflect its leadership in addressing domestic and regional energy demands. The two countries are thus advancing distinct yet complementary energy strategies, underscored by the Caspian electricity cable and their integration into the Middle Corridor.
