Azerbaijan, Kazakhstan, and Uzbekistan have made a necessary move to secure funding for a far-reaching project in the creation of renewable energy from renewables to Europe, by signing a framework agreement with the Asian Development Bank and Asian Infrastructure Investment Bank. The framework agreement sets out a "strong institutional and legal framework to support electricity trade across borders," said the ADB.
ADB Director General for Central and West Asia Yevgeniy Zhukov called the agreement "a defining moment" for developing a green energy corridor from Central Asia to the South Caucasus via a line running under the Caspian Sea. The Caspian endeavor is initiated to connect to another process that is considering running a line under the Black Sea and connecting up to the EU for electricity export from Central Asia.
“Our joint cooperation will enable us to start feasibility studies of the project soon. Thanks to this regional green energy initiative, Azerbaijan and Central Asia will realize the first trans-Caspian Energy Corridor,” the Azernews agency quoted Azerbaijani Energy Minister Parviz Shabazov as saying following the MOU signing ceremony in Baku.
Last May, Azerbaijan, Kazakhstan and Uzbekistan disclosed their trans-Caspian plan, which contemplates the transfer of renewable sourced electricity from Central Asia - particularly solar and wind - to Azerbaijan, who would then transmit the electricity to the EU. There have been no publicized nor discussed estimates of costs or timing of the project.
Around the same time, Azerbaijan Turkey, Georgia and Bulgaria signed a MOU in early April and were exploring “technical work” required for the feasibility study for the Black Sea power cable project, according to an Azerbaijani media source. In March, Azerbaijan and Georgia requested special status from the EU which would fast track the regulatory and financing processes of the Black Sea consortium process.