Azerbaijan, ADB discuss expanding energy cooperation

Azerbaijan and the Asian Development Bank (ADB) have discussed expanding cooperation in the energy sector.

According to Report, citing the Azerbaijani Ministry of Energy, the discussions took place during a meeting between Energy Minister Parviz Shahbazov and an ADB delegation led by Satya Srinivas, executive director on the bank's Board of Directors.

The sides highly assessed the long-standing energy cooperation between Azerbaijan and ADB and discussed developing partnerships in renewable energy, regional green energy corridors, strengthening power grids, offshore wind projects and heat supply.

Shahbazov provided information on Azerbaijan's role in energy security, the diversification of its energy system and efforts to develop renewable energy.

It was noted that the share of renewable energy sources in the country's total installed capacity is expected to exceed 30% next year. A grid study is also being carried out to determine the potential for integrating additional green energy capacity into the system.

Against the backdrop of rising electricity demand driven by artificial intelligence, data centers and digitalization, the sides stressed the importance of developing transmission capacity and regional interconnectors alongside new generation capacity.

They reviewed work on the Caspian-Black Sea-Europe, Azerbaijan-Georgia-Türkiye-Bulgaria, Azerbaijan-Central Asia and green energy corridors toward Türkiye and Europe via Nakhchivan.

It was noted that the feasibility study for the green energy corridor between Azerbaijan, Kazakhstan and Uzbekistan, being carried out with ADB support, is expected to be completed in May 2027.

The sides were also briefed on the results of the feasibility study for the Caspian-Black Sea-Europe Green Energy Corridor. The project is planned to be implemented in three stages with a total transmission capacity of around 4 GW, and opportunities for the participation of international financial institutions in its financing were discussed.

The meeting also covered private-sector participation in renewable energy projects, possibilities for ADB financial support and a technical assistance project for the development of the heat supply sector.

The sides noted that ADB's priorities in climate action, private-sector development and regional cooperation are aligned with Azerbaijan's energy agenda, with significant potential to expand cooperation particularly in renewable energy and regional connectivity.