Sunniya Durrani-Jamal: Azerbaijan established itself as strategic energy bridge between regions

If developed in a phased and well-coordinated manner, the Trans-Caspian Green Energy Corridor has the potential to enhance regional energy security, diversify cross-border electricity trade, and support the wider Caspian region's gradual integration into emerging clean energy, Sunniya Durrani-Jamal, the Asian Development Bank (ADB) Country Director for Azerbaijan, told Report.

She was commenting on the results of the 12th Ministerial Meeting of the Southern Gas Corridor Advisory Council and the 4th Ministerial Meeting of the Green Energy Advisory Council held yesterday in Baku.

She noted that yesterday, ADB, together with the governments of Azerbaijan, Kazakhstan, and Uzbekistan, launched the first phase of the feasibility study for the Trans-Caspian Green Energy Corridor project.

During the meeting, approaches to developing the feasibility study were agreed upon, a timeframe was defined, and preparations for the second phase of the study were outlined. The feasibility study is based on the Memorandum of Understanding signed in April 2025, and its development was officially launched in February 2026, she emphasized.

The head of the mission noted that Azerbaijan has confidently secured its status as a strategic energy bridge between the regions.

"In close collaboration with Kazakhstan and Uzbekistan, the Caspian Green Energy Corridor represents a natural progression of this role - building on existing energy connectivity while expanding cooperation toward renewable electricity trade and regional decarbonization.

This initiative could enable the transmission of large-scale renewable power from Central Asia through Azerbaijan and the South Caucasus to European markets. From a technical perspective, it introduces advanced solutions that are relatively new to this region, including subsea transmission and high-voltage direct current (HVDC) systems. These technologies allow efficient long-distance electricity transfer and improved grid stability across borders, which is essential for large-scale renewable integration.

However, infrastructure alone does not define a successful corridor. Cross-border electricity trade requires compatible regulatory frameworks, coordinated transmission planning, commercial clarity, and sustained cooperation among participating countries. In that respect, the project is as much about institutional alignment as it is about engineering.

ADB's contribution is focused on ensuring that this vision is supported by a comprehensive technical assessment, economic analysis, and structured regional dialogue. Through feasibility work and policy engagement, we are helping countries move from strategic intent to practical implementation. Our objective is to ensure that any future investment is technically sound, financially sustainable, and aligned with long-term climate and energy security goals," she added.

"ADB's engagement in Azerbaijan's energy sector is comprehensive and forward-looking. Our support extends beyond renewable energy generation projects to the broader transformation of the energy system, combining investment, policy dialogue, and institutional strengthening.

In renewable energy, we are working to facilitate large-scale private investment and advance bankable projects. A key milestone was the commissioning of the 230 MW Garadagh Solar Power Plant, Azerbaijan's first utility-scale solar facility, which demonstrated the commercial viability of renewable generation at scale. Building on this success, ADB has collaborated with international partners and private sponsors on the 445 MW Bilasuvar and 315 MW Banka, Neftchala solar projects.

Together with Garadagh, these initiatives represent nearly 1 gigawatt of new solar capacity, marking a significant expansion of Azerbaijan's clean energy portfolio.

In parallel, ADB is supporting reforms in the heating sector. Decarbonizing heat supply is critical for improving energy efficiency and reducing emissions. Through technical assistance, we are assisting with the modernization of policy frameworks, strengthening the operational performance of the district heating utility, and promoting the integration of renewable and more efficient technologies.

Azerbaijan's offshore wind potential similarly requires careful system preparation. Large-scale renewable deployment depends on adequate transmission infrastructure and grid readiness. ADB is contributing technical expertise and analytical support to help ensure that future development is technically robust and economically sustainable.

Modernization of the distribution network is another important priority. As renewable penetration increases and electricity demand evolves, the distribution system must become more digital, flexible, and resilient. We remain in active dialogue with our counterparts on how best to support this next phase of system strengthening.

Taken together, these efforts reflect ADB's commitment to supporting Azerbaijan in advancing an energy transition that enhances security of supply, mobilizes investment, and reinforces the country's growing role in regional clean energy development," she said.

Azerbaijan has been a member of ADB since 1999. During this period, the bank has invested approximately $5.6 billion in the country, including $4.4 billion in the public sector and $1.2 billion in the private sector. The largest financing areas are transport ($1.5 billion) and energy ($1.7 billion).

As part of the new partnership strategy, ADB is prepared to invest up to $2.5 billion in Azerbaijan.

ADB was established in 1966 and is headquartered in Manila. The bank brings together 69 member countries, 50 of which are from the Asia-Pacific region.