AIIB has allocated a $1 million grant to Azerbaijan for the preparation of a "green" energy corridor with the participation of Uzbekistan
A $1 million grant will be allocated for the preparation of the first phase of the feasibility study for the "green" energy corridor between Uzbekistan, Kazakhstan, and Azerbaijan. The project involves laying a 400-kilometer cable across the Caspian Sea and will eventually enable electricity supplies to Europe.
AIIB has allocated a $1 million grant to Azerbaijan for the preparation of a "green" energy corridor involving Uzbekistan
The Asian Infrastructure Investment Bank (AIIB) has secured a $1 million grant for the first phase of the feasibility study for the "Caspian Green Energy Corridor" project, which is designed to integrate the power grids of Uzbekistan, Kazakhstan, and Azerbaijan.
The project involves laying a 400 km undersea electricity cable between Kazakhstan and Azerbaijan across the Caspian Sea. Uzbekistan will connect to the corridor via terrestrial power grids. In the future, this route will enable the supply of electricity from renewable sources to Europe.
The funds are provided by the Finance Facility of the Multilateral Cooperation Center for Development Finance (MCDF). The AIIB and the Government of Azerbaijan have signed the corresponding grant agreement. The Ministry of Energy of Azerbaijan also announced the signing of the documents on October 9.
The grant will be directed toward the first phase of the feasibility study. As part of the study, specialists will assess the project's viability from technical, economic, financial, environmental, and social perspectives. In addition, transmission options and cross-border electricity trading opportunities will be explored.
The Asian Development Bank (ADB) will additionally allocate $1 million for technical assistance. Thus, the total support for the study will amount to $2 million. The two banks will jointly manage the preparation of the project.
The second agreement provides a $100,000 grant to develop a concept for coastal infrastructure for offshore wind farms in Azerbaijan, including port facilities, specialized vessels, substations, and grid connections.
As a reminder, the presidents of Uzbekistan, Kazakhstan, and Azerbaijan signed an agreement on strategic partnership in the development and transmission of "green" energy on November 13, 2024, at the COP29 climate summit in Baku.
In July 2025, National Electric Grid of Uzbekistan, Kazakhstan's KEGOC, and Azerbaijan's Azerenerji established a joint venture, Green Corridor Alliance, in Baku to implement the project. Starting from 2030, Uzbekistan plans to export surplus "green" electricity generated in the country to Europe via Kazakhstan and Azerbaijan.