BAKU, Azerbaijan, June 1. Central Asia is
transforming the Caspian into an energy bridge, opening a direct
From June 1 to 3, Baku will once again become a key platform for
discussing the future of regional energy within the framework of
Baku Energy Week. The event combines the 31st Caspian Oil & Gas
International Exhibition, the 14th Caspian Power International
Exhibition for Clean Energy, and the 31st Baku Energy Forum. The
forum has long expanded beyond the traditional oil and gas agenda,
serving as a practical platform to discuss specific integration
mechanisms for Central Asia, the South Caucasus, and Europe through
energy transit, green generation, and new infrastructure
projects.
For Central Asia, this is a matter of both energy transformation
and the diversification of export routes. Kazakhstan, Uzbekistan,
and Turkmenistan possess significant potential in solar and wind
energy; however, tapping into external markets requires a reliable
transit route. Azerbaijan already acts as a connecting hub due to
the existing infrastructure of the Southern Gas Corridor, its
geographical location, and extensive experience working with
international energy companies.
The central project remains the Trans-Caspian Green Energy
Corridor. The joint venture for the Green Corridor Union,
established by Azerbaijan, Kazakhstan, and Uzbekistan, is already
working on the project's feasibility study with support from the
Asian Development Bank and the Asian Infrastructure Investment
Bank. The completion of this study is expected in 2026–2027.
The project outlines the deployment of a subsea cable across the
Caspian Sea with an initial transmission capacity of around 4
gigawatts starting from 2032, expanding to 6 gigawatts in later
stages. By 2030, the integration of up to 5 gigawatts of renewable
energy capacity is expected. This is no longer just a political
declaration, but an infrastructure initiative backed by concrete
financial and institutional support.
Economic indicators confirm the accelerating pace of this
integration. During the first nine months of 2025, Azerbaijan's
trade turnover with Central Asian countries grew by 58%, exceeding
$1 billion. Kazakhstan accounted for approximately $600 million of
this total, marking an increase of $224.5 million compared to the
previous year. Trade with Uzbekistan reached $472.5 million. The
long-term goal is to scale up mutual trade turnover in the "Central
Asia plus Azerbaijan" format to $20 billion.
The expansion of cooperation is accompanied by large-scale
investments. Foreign direct investment from Asian countries into
Central Asia increased 2.3 times - rising from $29.9 billion in
2016 to $68 billion by mid-2025. Energy remains the main driver of
this growth. The Eurasian Development Bank has already formed a
green portfolio worth $2 billion, half of which is directed toward
renewable energy sources (RES) projects. Since 2015, the bank has
financed the creation of 1.2 gigawatts of renewable capacity.
Azerbaijan is actively boosting its own energy potential,
reinforcing its role as a reliable link. The country's installed
RES capacity grew from 1,184 megawatts (MW) in 2016 to 1,826 MW in
2025. The share of renewable sources in the overall generation mix
increased from 5.5% in 2020 to 13.5% in 2024. Among the largest
ongoing projects are the 445 MW Bilasuvar solar power plant, the
315 MW Neftchala solar power plant, the 240 MW "Shafag" solar power
station, and the 240 MW Khizi wind power plant.
The vast potential of the Caspian itself serves as an additional
catalyst. Estimates for offshore wind energy in the Caspian Sea
reach up to 845 GW, while the solar potential of Central Asia,
including Turkmenistan, is estimated in hundreds of gigawatts.
Against this backdrop, planned investments in the energy
infrastructure of Central Asia and the Caucasus have already
reached $289 billion.
During Baku Energy Week 2026, the signing of new memoranda on
the development of the Trans-Caspian Green Energy Corridor,
agreements on solar and wind projects, and the hosting of a
dedicated Central Asia Energy Transition Investment Forum with the
participation of the International Renewable Energy Agency (IRENA)
are expected. The agenda will focus on energy storage, grid
digitalization, green hydrogen, and the development of the Middle
Corridor.
Such platforms demonstrate how the region is shifting from
declarations to active implementation. Azerbaijan performs a vital
binding function here, not only as the host of the forum but as a
strategic energy and logistics hub. By connecting the resource
potential of Central Asia with European markets, Baku is
translating its geographical position into working infrastructure
and shaping the foundation for a new energy architecture across the
entire region.