Kazakhstan Azerbaijan and Uzbekistan Ratify Green Energy Transmission Deal

Kazakhstan's Senate approved on April 9 a landmark agreement with Azerbaijan and Uzbekistan to transmit green energy across the Caspian Sea via an undersea cable, marking a significant step toward creating a renewable energy corridor linking Central Asia to European markets.

The trilateral project envisions the construction of a submarine power cable across the Caspian Sea bed, carrying renewable electricity generated in Kazakhstan and Uzbekistan to Azerbaijan. From there, the energy could be further exported to Europe via a parallel Black Sea transmission route, positioning the three countries as key nodes in an emerging transcontinental clean energy supply chain.

The agreement, which has been under negotiation since 2024, reflects the growing strategic alignment between Caspian littoral states on energy transition issues. Azerbaijan, which hosted the COP29 climate summit in Baku in November 2024, has been actively positioning itself as a green energy hub connecting the resource-rich Central Asian steppe with energy-hungry European markets.

For Kazakhstan, the deal opens a new export pathway for its rapidly expanding wind and solar capacity. The country has set ambitious renewable energy targets and sees the Caspian cable as a way to monetize surplus green generation that cannot be fully absorbed by domestic demand. Uzbekistan, meanwhile, is investing heavily in solar power and views the trilateral framework as an opportunity to participate in cross-border energy trade.

The technical and financial parameters of the undersea cable remain under development, with feasibility studies expected to be completed by late 2026. Chinese energy companies have expressed interest in participating in the project, with Azerbaijan reportedly in discussions with Beijing-based firms on engineering, procurement, and construction contracts, according to OilPrice.com.

The ratification comes at a time when European buyers are increasingly seeking certified green energy imports to meet tightening emissions reduction targets. If realized, the Caspian green energy corridor could provide a new source of renewable electricity for Southeastern Europe while generating transit revenues for Azerbaijan.

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