ADB and AIIB back Caspian green energy corridor project

The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have signed a memorandum of understanding (MoU) with the energy ministries of Azerbaijan, Kazakhstan, and Uzbekistan. The agreement supports the feasibility study for the Caspian Green Energy Corridor Project.

This MoU outlines a joint effort to create the legal and institutional setup needed for cross-border electricity trade among the three Central Asian nations. The project aims to boost regional energy ties and promote renewable energy trade across much of the Central Asia Regional Economic Cooperation Program.

One of the main goals is to build an electricity transmission corridor from the Caspian region to Europe. This will be achieved by connecting the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan and transmitting green electricity via a proposed Black Sea Cable.

The three countries signed their own MoU on 2 May 2024 to launch the Caspian Sea electricity cable initiative. The cable will help secure energy supplies, encourage sustainable energy use, and support economic growth in the region.

To move forward, the countries have asked ADB to support a small-scale technical assistance (SSTA) project. This will include a detailed study and preparation work for the cross-border infrastructure, which will need large-scale investments.

The plan also supports broader regional goals—energy security, sustainability, and economic growth—while advancing renewable energy use and cutting emissions in line with the Paris Agreement.