| Project Detail |
Project Name
Central Asia Regional Economic Cooperation (CAREC) Program: The Caspian Sea Green Energy Corridor Project
Project Number
58386-001
Country / Economy
Regional
Azerbaijan
Kazakhstan
Uzbekistan
Project Status
Active
Project Type / Modality of Assistance
Technical Assistance
The governments of Azerbaijan, Kazakhstan, and Uzbekistan signed a Memorandum of Understanding (MOU) on 2 May 2024, initiating a Caspian Sea electricity transmission cable project. This endeavor seeks to bolster regional energy collaboration and establish a solid foundation for cross-border electricity trade. The proposed cable will interconnect the energy systems of the three nations, fostering energy security, sustainable practices, and economic growth in the area. It also aims to create a green corridor for the transmission of renewable energy from the Caspian region via Black Sea Cable to Europe. To commence this project, the governments of Azerbaijan, Kazakhstan, and Uzbekistan have requested ADB support, wherein an SSTA is required to conduct a study and prepare this intraregional project, which will entail significant investments for successful execution. The SSTA will support the project through the following measures: (i) aiding the intergovernmental Working Group and Steering Committee in facilitating dialogue, incorporating expertise, best practices, and knowledge-sharing to expedite the decision-making process; (ii) assisting in the formation of a Special Purpose Vehicle (SPV) or Joint Venture (JV), including the development of a transparent and efficient governance structure, legal and commercial frameworks, a detailed roadmap for SPV operations, and additional advisory services; and (iii) providing technical oversight and capacity building for country representatives as the Owners Engineer to ensure high-quality technical assessments and feasibility studies.
Project Rationale and Linkage to Country/Regional Strategy
The Caspian undersea electricity cable crosses many borders, as well as the Caspian Sea. It involves a range of stakeholders and requires interconnection of the energy systems. Through this SSTA, ADB can support regional energy cooperation and establish a robust framework for cross-border electricity trade among Azerbaijan, Kazakhstan, and Uzbekistan. This will promote the regions energy security, sustainability, and economic development, creating a green corridor for renewable energy transmission from the Caspian region to Europe. These initiatives are crucial for the projects success and align with ADBs mission to support sustainable development.
Impact
The TA impact is strengthened regional cooperation in the energy sector through the development of green energy infrastructure, the diversification of energy supplies, and the reduction of greenhouse gas emissions in the region in accordance with the goals set in the Paris Agreement and to cooperate in the development of long-term low-carbon development strategies. |
