Green Energy Corridor Azerbaijan-Central Asia: Prospects for the South Caucasus

The "Caspian Green Energy Corridor" project is a strategic initiative by Azerbaijan, Kazakhstan, and Uzbekistan aimed at strengthening regional energy security through the development of renewable energy sources. The transition from hydrocarbon exports to clean electricity supplies opens a new chapter in the energy and geopolitical architecture of Eurasia.
In April 2025, the three countries signed a Memorandum of Understanding, initiating the creation of a joint venture to implement the project. Its support by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) demonstrates high international interest. The key goal is to establish cross-border trade in green electricity between Central Asian countries and Azerbaijan, with subsequent export to Europe. Specifically, Azerbaijan plans to increase renewable energy production to 6.5 GW by 2030, which will constitute more than a third of the country's total energy capacity.
The project includes the construction of underwater cables across the Caspian Sea, through which electricity produced in Kazakhstan and Uzbekistan will flow to Azerbaijan, and then through existing and new land and sea routes to Europe. The ADB has already announced a tender for developing the technical and economic feasibility study of the "Trans-Caspian Green Energy Corridor," signaling the transition to the practical implementation stage.
This initiative creates additional supply routes, strengthening the resilience of regional energy systems. For Central Asian countries, this is an opportunity to diversify exports, and for the entire Caspian region, a chance to develop institutional forms of long-term cooperation. The formation of a joint venture lays the foundation for a model applicable to other strategic sectors.
Georgia occupies an important place in the region's emerging energy network. Today, it is a key transit hub in the Southern Gas Corridor, through which Azerbaijani gas flows to Europe. Additionally, the country participates in the green energy supply project across the Black Sea as part of a partnership with Azerbaijan, Romania, and Hungary. Thanks to its geographical position and energy infrastructure, Georgia can play an even more important role in overland energy transit between the Caspian and Europe.
Beyond its transit function, Georgia is capable of developing its own renewable energy production. Significant hydroelectric potential, as well as prospects for constructing solar and wind farms, allow the country to be considered as a future supplier of clean energy within the expanding Caspian-Black Sea energy space. Experience in implementing large-scale infrastructure projects, such as the Southern Gas Corridor, makes it a valuable technical partner.
The project opens new economic opportunities. For Kazakhstan and Uzbekistan, green energy exports will become a source of foreign exchange earnings and a stimulus for developing the green economy. Georgia will receive direct transit revenues, as well as strategic advantages: integration into Europe's energy system, enhanced energy security, and attraction of foreign investment.
Furthermore, electricity transit can be optimized considering time zone differences. For example, solar energy produced during peak daylight hours in Central Asia will be used in Georgia and Europe during morning hours when energy system load increases. This will help balance peak loads and enhance the resilience of the regional energy grid.
For Georgia itself, participation in the project could serve as a stimulus for accelerated implementation of green technologies and infrastructure modernization. This will create conditions for transitioning to cleaner energy, strengthen national security, and accelerate economic growth. However, effective inclusion in the project requires active diplomatic efforts, attraction of international financing, and formation of an adequate legal framework.
The "Caspian Green Energy Corridor" project has the potential to transform Georgia into a connecting link between European and Asian energy systems. With a clear strategy, the country can utilize its potential as both a transit and production hub, strengthening the role of the South Caucasus in the global energy transition.
This project demonstrates the importance of a multilateral approach to solving sustainable development challenges and combating climate change. For regional countries, this is not just an infrastructure initiative, but an opportunity to take an active position in the emerging global energy order based on clean technologies and cooperation.
Gulnara Safarli

SR-CENTER.INFO