ADB supports green energy corridor project across the Caspian Sea

The Asian Development Bank (ADB) has allocated $225,000 from its Special Technical Assistance Fund to support the creation of a "green energy corridor" across the Caspian Sea, Azernews reports.

This initiative aims to construct an underwater cable connecting the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan, marking a significant step toward enhancing regional energy cooperation and enabling sustainable cross-border electricity trade.

The governments of the three countries signed a Memorandum of Understanding (MoU) on May 2, 2024, outlining the project’s objectives, which include improving energy security, promoting sustainable energy practices, and stimulating economic growth. Additionally, the project aims to establish a "green corridor," allowing renewable energy from the Caspian region to be transported to Europe through a cable laid in the Black Sea.

ADB’s technical assistance will support the preparation of the project, which requires substantial investment. This includes forming intergovernmental working groups, establishing a special purpose vehicle (SPV) or joint venture, and creating a robust governance structure, along with legal and commercial frameworks. The project will also benefit from detailed operational planning for the SPV, capacity building for country representatives, and high-quality technical assessments and feasibility studies.

This project not only aims to boost energy cooperation across Central Asia but also aligns with the goals of the Paris Agreement by promoting green energy infrastructure and contributing to a reduction in greenhouse gas emissions.