Caspian Green Energy Corridor - The Times Of Central Asia

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Caspian Green Energy Corridor

Kazakh Parliament Backs Caspian Green Energy Corridor Linking Central Asia to Europe

Kazakhstan’s Mazhilis, the lower house of parliament, has ratified a strategic partnership agreement with Uzbekistan and Azerbaijan on cooperation in green energy production and transmission. The agreement involved the construction of a high-voltage power cable along the seabed of the Caspian Sea. Speaking at a plenary session, Energy Minister Yerlan Akkenzhenov noted that the document had been signed by the leaders of the three countries in November 2024 on the sidelines of the COP29 climate conference in Baku. According to the minister, the agreement lays the groundwork for one of the most ambitious energy initiatives in the history of independent Kazakhstan. The project involves the creation of a “Green Energy Corridor” designed to facilitate the export of environmentally friendly electricity, as well as green hydrogen and green ammonia, from Central Asian countries to European markets via the Caspian region. A key component of the initiative is the planned installation of a high-voltage direct current underwater cable system across the Caspian Sea. Officials say the project could provide Kazakhstan with direct access to the European Union’s energy market through interconnection with a similar energy infrastructure initiative being considered in the Black Sea region. The initiative reflects a broader effort by Central Asian governments to position the region as a supplier of low-carbon energy to Europe while developing east-west infrastructure that bypasses traditional Russian transit routes. For Kazakhstan and Uzbekistan in particular, exporting renewable electricity and related products such as green hydrogen could open new markets as global demand for cleaner energy continues to grow. Italian consulting company CESI has begun preparing a feasibility study, which is expected to define the project’s financial model and core technical parameters. The cost of preparing the feasibility study is estimated at around €1 million and will be fully covered by grant funding. The Asian Development Bank and the Asian Infrastructure Investment Bank have indicated their readiness to allocate up to $2 million in additional support. To coordinate implementation, the Green Corridor Alliance joint venture was established in July 2024. Ownership is divided equally among Kazakhstan, Uzbekistan, and Azerbaijan, with each country holding a 33.3% stake. The company is currently overseeing expert consultations and preparing subsequent phases of the project. According to Akkenzhenov, successful implementation would strengthen Kazakhstan’s position in global energy markets. “The project will help position Kazakhstan as a reliable partner in sustainable energy, capable of contributing to international energy corridors and implementing large-scale technological initiatives,” he stated. The initiative is also expected to expand export potential, stimulate the development of new energy technologies, and reinforce Kazakhstan’s role as a regional energy hub. Following the parliamentary debate, the Mazhilis deputies approved the agreement, emphasising its importance for enhancing regional energy security. The project is intended to deepen the interconnection between the power systems of Central Asia and Azerbaijan and create conditions for stable exports of green electricity. At the same time, the initiative highlights the growing role of the Caspian region in emerging energy corridors linking Central Asia with European markets. Alongside transport projects...

Green Energy

Uzbekistan, Azerbaijan, and Kazakhstan Launch Joint Venture for Green Energy Corridor

Energy companies from Uzbekistan, Azerbaijan, and Kazakhstan have launched a joint venture to support the development of the Caspian Green Energy Corridor, according to the press service of National Electric Networks of Uzbekistan. The new company, “Green Corridor Alliance,” was officially established on July 1 in Baku. It brings together three national power operators: Azerbaijan’s Azerenerji, Kazakhstan’s KEGOC, and Uzbekistan’s National Electric Networks. The joint venture is expected to play a pivotal role in exporting green electricity to Europe while bolstering long-term energy security across the region. Officials have highlighted the corridor’s strategic importance in advancing sustainability goals. “This initiative is important for our energy security and green growth,” the Uzbek side stated. As previously reported by The Times of Central Asia, the Caspian Green Energy Corridor is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). In April, the three countries signed a Memorandum of Understanding with both institutions in Baku to initiate a feasibility study. The corridor aims to enhance cross-border electricity trade and promote renewable energy use throughout Central Asia and the Caspian region. The long-term objective is to integrate the power grids of Uzbekistan, Kazakhstan, and Azerbaijan, creating a streamlined route for clean energy exports to Europe. The agreement builds on a strategic partnership formalized by the presidents of the three countries during the COP-29 climate summit held in Baku in November 2024.

Green Future

Central Asia’s Green Energy Dream: Too Big to Achieve?

Although most Central Asian nations are heavily dependent on fossil fuel production and exports, they are aiming to significantly increase the use of renewable energy, hoping to eventually become crucial suppliers of so-called green electricity to Europe. Achieving such an ambitious goal will be easier said than done, given that developing the green energy sector in the region requires massive investment. What Central Asian states – struggling to attract long-term private capital into clean energy projects – need is financing for projects that modernize power networks, improve grid stability, and enable cross-border electricity flows. These upgrades are essential for large-scale renewable energy deployment and regional trade in power. Most actors in Central Asia seem to have taken major steps in this direction. In November 2024, at the COP29 climate conference held in Baku, Kazakhstan signed several deals worth nearly $3.7 billion with international companies and development institutions to support green energy projects. Neighboring Uzbekistan, according to reports, has attracted more than €22 billion ($23.9) in foreign investment in renewable energy, while Kyrgyzstan, Turkmenistan, and Tajikistan – which is aiming to generate all its electricity from green energy sources by 2032 – have developed strategies to help increase their renewable potential. But to turn their goals into reality, all these nations will need funding – whether from oil-rich Middle Eastern countries, China, the European Union, or various international financial institutions. Presently, the development of the Caspian Green Energy Corridor – which aims to supply green electricity from Central Asia to Azerbaijan and further to Europe – remains the region’s most ambitious project. According to Yevgeniy Zhukov, the Asian Development Bank's (ADB) Director General for Central and West Asia, this initiative is a strategic priority for Kazakhstan, Uzbekistan, and Azerbaijan. “While the prospect of exporting green electricity to Europe is part of the long-term vision, the core goal of the initiative is to accelerate green growth within the region,” Zhukov told The Times of Central Asia. Together with the Asian Infrastructure Investment Bank, the ADB is funding a feasibility study for this proposed transmission corridor. The study will assess the technical and economic viability of such a system, along with the environmental and regulatory requirements. In the meantime, the ABD is expected to continue funding other green energy projects in the region. The financial entity, according to Zhukov, invested $250 million in Uzbekistan in 2023 to support renewable energy development and comprehensive power sector reforms, while in other Central Asian countries, it remains “firmly committed to driving the green energy transition.” “For instance, in Tajikistan we are exploring the potential to co-finance the Rogun Hydropower Project alongside the World Bank and other international partners. In Kyrgyzstan, our focus has been on supporting foundational reforms in the energy sector, including strengthening the policy and regulatory environment to attract private investment in renewables. In Turkmenistan, we’ve launched a total of $1.75 million technical assistance initiative to help lay the groundwork for future renewable energy development,” Zhukov stressed, pointing out that these efforts are part...

Renewable energy

Azerbaijan, Kazakhstan, and Uzbekistan Partner on Caspian Green Energy Corridor

Azerbaijan, Kazakhstan, and Uzbekistan have signed a landmark agreement with the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to advance a regional renewable energy initiative known as the Caspian Green Energy Corridor. The Memorandum of Understanding (MoU), signed on April 5 in Baku, outlines plans for a feasibility study to assess the project's potential. The primary objective is to establish a robust legal and institutional framework that will facilitate cross-border electricity trade among the three countries, particularly from renewable sources. The Caspian Green Energy Corridor is part of ADB’s broader regional strategy to promote clean energy and enhance multilateral cooperation. The initiative aims to interconnect the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan, enabling them to share and distribute renewable electricity more efficiently. “This agreement lays the foundation for deeper cooperation and shows our shared commitment to building a clean energy future,” said Yevgeniy Zhukov, ADB Director General for Central and West Asia. A key ambition of the project is to develop a green energy supply route from the Caspian region to Europe via the Black Sea Cable. The corridor is expected to improve energy security, reduce carbon emissions, and support economic development across the region. The initiative is also backed by the Central Asia Regional Economic Cooperation (CAREC) Program, which brings together 11 countries and several development partners to promote regional integration and reduce poverty through economic collaboration.