ESCAP proposes phased model for integrating energy systems of Central Asia and Azerbaijan

The Trans-Caspian Green Energy Corridor, which will connect Central Asia with Azerbaijan, may become a long-term strategic route for exporting surplus electricity produced from renewable energy, Sergey Tulinov, Project Manager for the Secretariat of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), said at the Annual Meeting and Business Forum of the Eurasian Development Bank (EDB), Report informs.

According to him, the development of renewable energy in Central Asia should occur 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 energy system reliability, and mechanisms for payment of available and deliverable capacity," noted 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 electric power systems, and the Trans-Caspian Green Corridor can serve as a long-term strategic option for exporting surplus electricity from renewable energy," 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 funded 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 conduct regular working meetings of experts from the participating countries. Each of the three countries holds a 33.3% share in the joint venture.