ESCAP proposes a phased model for the integration of energy systems of Central Asia and Azerbaijan

The Trans-Caspian Green Corridor, which will connect Central Asia with Azerbaijan, could become a long-term strategic route for exporting surplus electricity generated from renewable energy sources (RES).

As reported by BAKU.WS with reference to Report, this was stated by Sergey Tulinov, Project Manager at the Secretariat of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), at the annual meeting and business forum of the Eurasian Development Bank (EDB).

According to him, the development of RES in Central Asia should proceed in stages, which will allow for the gradual expansion of regional cooperation opportunities and the formation of a mutually beneficial electricity market.

"The first stage is the improvement of existing interaction mechanisms. The second is the launch of a pilot day-ahead market, which is actively developing in Europe. The third stage involves the creation of a real-time electricity market and the development of system services. The fourth is the formation of a common capacity market based on regional assessment of capacity adequacy, recognition of the contribution of various resources to the reliability of the energy system, and mechanisms for payment of available and deliverable capacity," noted S. Tulinov.

He emphasized that such a sequence makes it possible to reduce the risks of premature decisions and create a sustainable foundation for the integration of the region's energy systems.

"Central Asia can become an energy hub between several regional electricity systems, and the Trans-Caspian Green Corridor can serve as a long-term strategic option for exporting surplus electricity from RES," stated the ESCAP representative.

The feasibility study for the project is being developed by the Italian consulting company CESI. The cost of preparing the feasibility study is estimated at approximately 1 million euros and is financed through grants from international financial institutions.

In addition, on July 1, 2025, the system operators of Kazakhstan, Azerbaijan, and Uzbekistan established a joint venture called Green Corridor Alliance to coordinate the implementation of the project and hold regular working meetings of experts from the participating countries. Each of the three countries holds a 33.3% share in the joint venture.