ADB to support preparation of "Green Energy Corridor" project across Caspian Sea

The Asian Development Bank (ADB) has allocated $225,000 through a special technical assistance fund for the implementation of a project to create a "green energy corridor" across the Caspian Sea.

Report informs citing ADB that this project involves the construction of an underwater cable that will connect the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan, marking an important step in strengthening regional energy cooperation and establishing sustainable cross-border electricity trade.

The memorandum of understanding was signed by the governments of the three countries on May 2, 2024, and the project aims to ensure energy security, develop sustainable energy practices, and support economic growth in the region.

The project also plans to create a "green corridor" through which renewable energy will be transmitted from the Caspian region to Europe via a cable in the Black Sea.

This initiative aligns with the goals of the Paris Agreement and promotes the development of green energy infrastructure.

ADB is providing technical support to the project through various measures, including assistance in forming intergovernmental working groups, establishing a special purpose vehicle (SPV) or joint venture, developing a transparent and efficient governance structure, legal and commercial frameworks, a detailed SPV operations plan, and providing additional advisory support. The bank is also working on capacity building for country representatives to ensure high-quality technical assessments and feasibility studies.

This project not only strengthens energy cooperation in Central Asia but also contributes to the reduction of greenhouse gas emissions.