Trans-Caspian Green Corridor: Central Asia’s Renewable Energy Bridge to Europe

The establishment of Green Corridor Union LLC in Baku represents a pivotal development in global energy geopolitics, forging a new interregional pathway for renewable electricity from Central Asia to Europe. This strategic initiative, spearheaded by Uzbekistan, Kazakhstan, and Azerbaijan, aims to diversify Europe’s energy supply while leveraging Central Asia’s vast untapped solar and wind resources. Beyond merely connecting grids, the project signifies a profound commitment to sustainability, regional economic integration, and enhanced energy security for all participants.

• Green Corridor Union LLC has been formally established in Baku to facilitate renewable electricity exports from Central Asia to Europe.
• The initiative is driven by Uzbekistan, Kazakhstan, and Azerbaijan, seeking to diversify Europe’s energy supply.
• Its origins trace back to a declaration on strategic green energy cooperation signed at COP29 in Baku.
• Founding documents were formally signed by the national grid operators: Uzbekistan’s National Electric Grids, Kazakhstan’s KEGOC, and Azerbaijan’s AzerEnergy.
• The proposed corridor involves a trans-Caspian subsea cable, connecting through Azerbaijan and Georgia to Romania’s grid.

The genesis of this ambitious undertaking traces back to COP29 in Baku, where the leaders of the three nations signed a declaration on strategic cooperation in green energy. This foundational vision recently materialized with the signing of founding documents by Uzbekistan’s National Electric Grids, Kazakhstan’s KEGOC, and Azerbaijan’s AzerEnergy, formally establishing the Green Corridor Union LLC. The new entity, now led by Farhad Mammadov, is tasked with coordinating the complex efforts required to export surplus green electricity across continents.

The proposed energy corridor is designed as an intricate chain of high-voltage transmission infrastructure, spanning across Kazakhstan, beneath the Caspian Sea via a subsea cable, through Azerbaijan and Georgia, and ultimately connecting to Romania’s grid. This comprehensive plan aims to link the resource-rich Caspian Basin directly to the heart of the European Union, underscoring a collaborative effort to overcome significant geographical and engineering challenges and create a pioneering trans-Caspian green energy link.

Regional Pillars of the Corridor

Azerbaijan: The Crucial Gateway

Azerbaijan is strategically positioned to serve as the crucial final connector in the Green Corridor, owing to its expanding renewable energy capacity and direct access to the Black Sea. Power generated in Central Asia will traverse the Black Sea via a proposed subsea cable to Romania. Azerbaijan’s Energy Minister Parviz Shahbazov underscored the strategic and historic nature of the initiative, stating, “The unification of our energy systems is both a strategic and historic step. This initiative marks the beginning of the Caspian Green Energy Corridor — the first of its kind.” With an impressive energy capacity of 8.4 GW, over 21% of which is renewable, Azerbaijan exported more than 1.2 billion kWh of electricity in the first nine months of 2024 alone. Feasibility studies for the Caspian subsea cable and the Georgian transit route are currently underway, paving the way for this ambitious infrastructure project.

Uzbekistan: Driving Renewable Investment

Uzbekistan has rapidly escalated its green energy transformation efforts, positioning itself as a significant potential exporter. According to Uzbekistan’s Energy Minister Jurabek Mirzamakhmudov, the nation anticipates producing over 135 billion kWh of electricity by 2030, with a substantial 10-15 billion kWh allocated for export, primarily derived from solar and wind sources. Foreign direct investment (FDI) in Uzbekistan’s green energy sector has witnessed a sharp increase, tripling in a single year to €1.2 billion in 2023, with projections indicating an excess of €4.23 billion by the end of 2024. The country currently boasts over 4.2 GW of operational renewable capacity and aims for an ambitious 20 GW by 2030, which would account for 40% of its total electricity generation. These advancements have already yielded substantial environmental benefits, including savings of 1.3 billion cubic meters of gas and a reduction of 1.8 million tons of CO₂ emissions this year.

Kazakhstan: From Transit to Green Growth

For Kazakhstan, the Green Corridor transcends a mere transit route; it represents a strategic investment in regional leadership and sustainable growth. Kazakhstan’s Energy Minister Erlan Akkenzhenov underscored the project’s strategic importance, stating, “It allows us to capitalize on our renewable potential and establish a sustainable export route for clean electricity to Europe.” KEGOC, responsible for national grid operations, will play a central role in facilitating the country’s position as a key transit hub within this corridor. While definitive financial commitments are still being finalized, Kazakhstan has successfully secured Memoranda of Understanding with various partners and influential financial institutions, including the Asian Development Bank and the Asian Infrastructure Investment Bank, both of which are actively supporting the ongoing feasibility studies. Akkenzhenov affirmed that technical barriers are not considered insurmountable, anticipating the project to serve as a pioneering model for future cross-border energy cooperation.

European Engagement and Future Outlook

The Green Corridor initiative aligns strategically with the European Union’s broader objectives of achieving climate neutrality and enhancing energy security. This proposed interconnection promises not only greater supply diversification for Europe but also significant long-term geopolitical and economic benefits for both the EU and the participating Central Asian nations. The project resonates strongly with key European policy frameworks, including the EU Green Deal and the Global Gateway strategy, which prioritizes sustainable infrastructure investments in partner regions. Discussions with European institutions are ongoing, with all three Central Asian countries expressing considerable interest in attracting European investors and developers to the initiative.

Despite its ambitious promise, the project faces several notable challenges. The construction of extensive undersea transmission cables demands substantial investment and advanced engineering expertise. Furthermore, navigating complex political coordination, particularly concerning transit routes and potential regional sensitivities, will be crucial for successful implementation. Securing the multi-billion-euro financing for this extensive infrastructure will undoubtedly require sustained international support and multilateral collaboration. Nevertheless, the foundational steps have been taken: the joint venture has been established, feasibility studies are progressing, and momentum for this transformative energy initiative continues to build steadily.