ASTANA, Kazakhstan, June 18. Kazakhstan and Azerbaijan lay the groundwork for large-scale renewable energy cooperation centered around the Trans-Caspian Power Line, a joint report by the Astana International Financial Centre (AIFC) and the Institute for Development and Diplomacy (IDD) at ADA University said, Trend reports.
Analysts pointed out that this submarine high-voltage cable will
tie the power systems of the two countries together and will be a
piece of the bigger puzzle—a submarine cable project across the
Black Sea that bridges the South Caucasus with Europe.
The rollout of this project will pave the way for the export of
clean electricity, mainly from solar and wind sources, generated in
Central Asia to the European Union. This move will not only help
diversify energy sources but also play a crucial role in hitting
the EU's climate targets for decarbonization.
The report emphasized that Kazakhstan aims to increase the share of renewable energy sources in the balance to 15 percent by 2030, using its solar and wind energy potential. Meanwhile, Azerbaijan has one of the world's largest offshore renewable energy potentials and is actively developing onshore solar and wind power plants, especially in Karabakh and Eastern Zangezur.
The laying of the Trans-Caspian cable will provide a stable export channel and increase the investment attractiveness of renewable energy projects. In addition to bilateral cooperation, the region is promoting the idea of creating a single electricity market for Central Asia and the South Caucasus with harmonized standards and the development of intra-city energy trade. These initiatives are supported by the EU, the World Bank and the EBRD.
The report also noted the significant investment needs of the project, especially for the subsea and cross-border sections, and points to the need for a combination of financing—concessional lending, sovereign guarantees, and 'green' bonds. The European Investment Bank, the EBRD, and climate funds can play an important role in financing. The Global Gateway initiative is seen as a potential mechanism for strategic support.
AIFC and IDD experts emphasize that this project reflects the strategic transition of Kazakhstan and Azerbaijan from hydrocarbon trade to low-carbon electricity exports, which will strengthen the sustainability of the energy architecture of the Silk Road region and create new economic opportunities.
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