What is the Caspian Green Energy Corridor and why does it matter?

Kazakhstan, Azerbaijan and Uzbekistan are advancing plans for a new energy corridor beneath the Caspian Sea that could carry renewable electricity from Central Asia to Europe, linking the region's growing clean energy sector with European markets.

How the corridor would work

The project, known as the Caspian Green Energy Corridor, aims to connect Central Asia's expanding renewable energy sector with European electricity markets via Azerbaijan and a planned Black Sea power connection.

The three countries agreed to develop the project after signing a cooperation agreement in Baku in November 2024. Alongside renewable electricity, the corridor could also be used to export green hydrogen and green ammonia.

"The initiative aims to establish a Green Energy Corridor that would enable the export of renewable electricity, hydrogen and green ammonia from Central Asia to Europe via the Caspian Sea," Kazakhstan's Energy Ministry said.

At the heart of the project is a high-voltage direct current (HVDC) submarine cable that would run across the Caspian Sea.

The cable would connect Kazakhstan's electricity network to Azerbaijan, where power could then continue through a separate transmission project planned beneath the Black Sea to Romania and the wider European grid.

According to Kazakhstan's Energy Ministry, this would give the country direct access to European electricity markets for the first time.

To move the project forward, the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and the energy ministries of the three countries agreed in April 2025 to fund a feasibility study. Italian engineering company CESI is leading the work, which is expected to be completed in 2027.

CESI said the study will assess whether the project is technically, economically, environmentally and legally viable.

Why the three countries are backing the project

All three countries are investing heavily in renewable energy, although they are progressing at different rates.

Kazakhstan currently has 169 renewable energy facilities with a combined capacity of around 3.7 gigawatts. The government plans to add a further 10 gigawatts by 2035 as part of its energy transition strategy.

Uzbekistan has set even more ambitious targets, aiming to increase renewable energy capacity to 35 gigawatts by 2030. More than half of the country's electricity is expected to come from renewable sources by the end of the decade.

Azerbaijan, meanwhile, is expected to serve as the bridge between Central Asia and Europe. It already has more than two gigawatts of renewable energy capacity and is developing a Black Sea electricity connection with Georgia, Romania and Hungary.

Speaking at Kazakhstan Energy Week, Azerbaijan's Energy Minister Parviz Shahbazov said the project would strengthen regional cooperation.

"The creation of the Trans-Caspian Green Energy Corridor, which will connect the electricity systems of our countries for the first time in history, is fully consistent with the main priorities of this policy," he said.

Why Europe is watching closely

The project aligns with Europe's broader efforts to diversify energy supplies and cut carbon emissions.

If completed, the corridor could provide European countries with an additional source of low-carbon electricity while reducing dependence on traditional energy imports.

Supporters also see it as an important part of the broader Middle Corridor trade route linking Europe and Asia through the Caspian region.

What challenges remain

Despite strong political backing, the project remains at an early stage.

The biggest questions are whether it will be commercially viable, how much it will cost and whether the necessary infrastructure can be delivered on time.

Kazakhstan is also facing growing pressure on its domestic electricity system. Rising demand and limited flexible power generation have increased the country's reliance on imported electricity, particularly from Russia.

According to S&P Global, Kazakhstan's electricity imports from Russia more than doubled in 2023. The country is also expected to face electricity shortages during the 2025–26 heating season, with imports from Russia and Uzbekistan helping to bridge the gap.

Before the corridor can become a major export route, the three countries will need to expand renewable energy generation, strengthen their domestic electricity grids and complete the cross-border infrastructure needed to reach European markets.

For now, the Caspian Green Energy Corridor remains a long-term project with significant potential, but its technical and commercial viability has yet to be proven.

Read more: 

• Europe needs Azerbaijan more than ever despite political tensions
• Kazakhstan secures $12bn in EU agreements during Brussels visit
• Kazakhstan considers digital map to track shrinking Caspian coastline

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