Two Asian banks agree to support export of green energy from Kazakhstan

The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have signed a memorandum of understanding with the ministries of energy of Kazakhstan, Uzbekistan and Azerbaijan to support the feasibility study of the export corridor for green electricity from Kazakhstan and Uzbekistan via the Caspian Sea and Azerbaijan to Europe, as reported by the ADB.

«The Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the energy ministries of Azerbaijan, Kazakhstan, and Uzbekistan today signed a Memorandum of Understanding (MOU) to support the Feasibility Study for the Caspian Green Energy Corridor Project. The initiative is part of ADB’s regional technical assistance for the project,» the financial organization said in a statement.

The Caspian Green Energy Corridor project aims to bolster regional energy cooperation and promote green energy trade among most of the Central Asia Regional Economic Cooperation Program (CAREC) member countries.

«The Caspian Green Energy Corridor initiative is a strategic priority for three countries, as well as ADB, as it directly advances our core mission of fostering cross-border cooperation on clean energy infrastructure while simultaneously addressing multiple regional challenges,» said ADB Director General for Central and West Asia Yevgeniy Zhukov.

He also noted that the document will be a defining moment in collaboration and sets the foundation for deeper cooperation between Azerbaijan, Kazakhstan and Uzbekistan, and the two multilateral partners — ADB and AIIB — ensuring a structured and coordinated approach as we move forward. It reflects our collective commitment to turning this vision into a transformative regional initiative.

The project will involve the interconnection of energy systems and the establishment of a green corridor for renewable energy transmission and trade. It envisions comprehensive transmission of green energy from the Caspian region to Europe via the Black Sea Cable. The initiative aligns with ADB’s mission to support sustainable development and regional cooperation, promoting energy security, sustainability, and economic development in the region.

CAREC is a partnership of Afghanistan, Azerbaijan, the People’s Republic of China, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, Uzbekistan, and development partners working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction.

The ADB was founded in 1966 and is controlled by 69 countries, including 49 within the region. The bank supports sustainable, inclusive and resilient growth in the Asia-Pacific.

A list of renewable energy sources (RES) that may obtain the right to export energy to Europe via the Caspian Sea and Azerbaijan has yet to be compiled, Kazakhstan’s Ministry of Energy told Kursiv.media. According to the ministry, the RES eligible to export electricity to Europe will be selected during the feasibility study process and through further negotiations with partners.

A memorandum on interconnecting energy systems of Kazakhstan, Azerbaijan and Uzbekistan was signed on May 1, 2024, in Tashkent, Uzbekistan. On November 13, the three countries signed the agreement regulating such interconnecting during the 2024 United Nations Climate Change Conference in Baku, Azerbaijan.