Kazakhstan and Azerbaijan are laying the foundation for extensive renewable energy collaboration centered around the Trans-Caspian Power Line, according to a joint report published by the Astana International Financial Centre (AIFC) and the Institute for Development and Diplomacy (IDD) at ADA University.
The initiative envisions a high-voltage submarine cable that will link the power systems of both countries and serve as a key component of a broader infrastructure plan—a submarine electricity connection across the Black Sea, aimed at linking the South Caucasus to Europe.
This cross-regional energy corridor is expected to enable the export of clean electricity, primarily derived from solar and wind power generated in Central Asia, to the European Union. The project supports the diversification of energy sources and plays a pivotal role in advancing the EU’s climate and decarbonization goals.
The report highlights Kazakhstan’s commitment to boosting its share of renewables in the national energy mix to 15% by 2030, leveraging its abundant solar and wind potential. At the same time, Azerbaijan is actively developing both onshore and offshore renewable energy, with significant projects underway in the Karabakh and Eastern Zangezur regions—areas identified as green energy zones.
The implementation of the Trans-Caspian Power Line will ensure a reliable energy export route and enhance investor confidence in the region’s renewable energy sector. Beyond bilateral cooperation, the report also outlines ambitions for a unified electricity market across Central Asia and the South Caucasus, supported by harmonized standards and regional energy trade. These efforts have attracted the backing of major international institutions such as the European Union, the World Bank, and the European Bank for Reconstruction and Development (EBRD).
The report further underscores the considerable investment required for the project, particularly in its subsea and cross-border segments. A mix of financing tools—including concessional loans, sovereign guarantees, and green bonds—will be essential. Institutions like the European Investment Bank, the EBRD, and global climate funds are expected to play a key role, with the EU’s Global Gateway initiative positioned as a potential strategic support mechanism.
According to AIFC and IDD analysts, this project marks a significant shift in the energy strategy of Kazakhstan and Azerbaijan—from hydrocarbon exports to low-carbon electricity trade—paving the way for a more sustainable energy future along the Silk Road and unlocking new economic opportunities across the region.
https://renewables.az/en/news/astana-international-financial-centre-envisages-kazakh-azerbaijani-renewables-to-europe