Kazakhstan, Azerbaijan, and Uzbekistan: Benefits of the “green” agreement
At the COP 29 World Climate Summit, the leaders of Kazakhstan, Azerbaijan, and Uzbekistan—Kassym-Jomart Tokayev, Ilham Aliyev, and Shavkat Mirziyoyev—signed a Strategic Partnership Agreement for the production and transmission of green energy among their countries. A Kazinform News Agency correspondent reviewed some details of this new project and its potential prospects for Central Asia.
Kazakhstan is committed to achieving carbon neutrality, making “green” energy a top priority today.
According to President Tokayev, this agreement marks a new direction in the pursuit of sustainable development, representing a significant step in the tripartite cooperation of Central Asia and the South Caucasus.
“This document opens new opportunities for integrating our energy systems and establishing reliable green energy corridors to Europe and other markets, with Kazakhstan playing a key role as a major transit area,” Tokayev emphasized. “The practical results of this Agreement will contribute to the development of the Middle Corridor as a “green bridge” linking our economies and enhancing energy security.”
According to President Tokayev, Kazakhstan is actively working to reduce its dependency on fossil fuels, introducing technological innovations and new infrastructure to support environmental sustainability. Agreements with international partners have led to the development of green projects with a total capacity of 43 GW.
Kazakhstan’s investment in renewable energy
As of recent data, Kazakhstan has 148 renewable energy facilities with an installed capacity of 2.9 GW, including wind farms, solar power plants, hydropower, and biogas plants. Renewable energy produced in 2023 amounted to 6.675 billion kWh or 5.92% of total electricity production.
The sector includes companies like General Electric, Eni, Total, Hevel Solar, and HydroChina. In 2023, 16 new facilities were commissioned with a total installed capacity of 495.57 MW.
According to data from the Bureau of National Statistics, in 2023 alone, investments directed toward the “green” economy reached 201 billion tenge, which is 3.8 times more than the previous year. Investments in the field of renewable energy sources amounted to 199.8 billion tenge; in the greenhouse gas emissions reduction segment, 1 billion tenge; and in energy-saving technologies and energy efficiency improvement, 186 million tenge.
From January to June 2024, renewable energy generation reached 3.9 billion kWh, a 16.3% increase over the same period in 2023.
By 2030, the country plans to add 7 GW of new renewable capacities, aiming to raise renewables’ share in its energy balance to 15%.
The green corridor project
The “Green Energy Corridor” is an initiative to export renewable energy from Central Asia to Europe. Kazakhstan, Azerbaijan, and Uzbekistan will collaborate to create efficient infrastructure for clean energy exports to European markets.
Azerbaijani expert and director of the Turan news agency, Mehman Aliyev, explained how this process will look in practice.
“After the agreement is signed, work will begin on preparing a feasibility study for the project with the involvement of consulting companies. This stage will take about a year and will include an analysis of needs, opportunities, and risks. A network of high-voltage power lines, including underwater cables, will be built to connect the energy systems of Central Asia and Europe. High Voltage Direct Current (HVDC) technology will be used for the efficient transmission of electricity over long distances,” the expert explained.
The practical implementation will occur in stages, including establishing a joint venture, building infrastructure, and integrating energy systems. Aliyev highlighted that integrating the three countries’ energy systems will optimize green energy trade and ensure reliable deliveries to Europe. Uzbekistan, for instance, plans to increase renewables to 40% of its energy mix by 2030, providing surplus energy for export.
Aliyev noted that building the necessary infrastructure would take approximately 3–4 years after completing the feasibility study. Financing will likely involve international institutions, potentially including loans and investments from organizations like the Asian Development Bank.
Benefits for Central Asia and Europe
With their vast potential, Kazakhstan, Uzbekistan, and Azerbaijan can jointly support Europe’s energy transition by providing clean, reliable, and affordable energy. The three countries are expanding renewable energy capacities, attracting international investments.
According to expert Mehman Aliyev, participation in the project will allow Central Asian countries to contribute to global efforts to combat climate change, aligning with the goals of the Paris Agreement and other international environmental commitments.
Moreover, international financial institutions are now willing to invest in renewable energy projects, opening up opportunities for Central Asian countries to attract capital for the development of their energy systems and infrastructure.
“The European Union is actively striving to reduce its dependence on fossil fuel sources and increase the share of renewables in its energy mix. This creates a high demand for clean energy, which Central Asian countries can supply,” the expert summarized.
According to Ilaha Mammadli, Deputy Editor of Report Agency, the Caspian Sea alone holds significant potential for wind energy production, with an estimated 157 GW capacity. This is a vast amount that is in demand in Azerbaijan but far exceeds its needs.
Azerbaijan’s economic potential in renewable energy (RES) amounts to 27 GW, including 3,000 MW from wind energy and 23,000 MW from solar energy. The government aims to increase the share of renewables in its energy balance to 24%, and to 30% by 2028.
Rustem Kydyrbekov, Deputy Director of Kazakhstan’s Ministry of Energy Renewable Energy Department, explained that the Agreement’s ratification will precede its implementation.
“The Agreement aims to efficiently use renewable energy potential and promote green energy trade among the three countries, Europe, and other regions, thereby reinforcing Central Asia’s role in renewable energy production and connectivity with Azerbaijan for sustainable green energy export,” the expert noted.
According to Kydyrbekov, all parties have agreed to expand internal infrastructure and develop new connections to scale up green energy trade and export to Europe and beyond. European countries have shown interest in collaborating on technical and financial aspects related to joining the “Black Sea Undersea Transmission Line” project.
A preliminary feasibility study is underway, involving the international consulting firm “CESI”. Kazakhstan, Azerbaijan, and Uzbekistan’s energy systems are being modernized to adapt to new challenges and support sustainable development. Under the Agreement, the countries plan to strengthen joint infrastructure development, creating reliable export and transit channels for green energy.
In summary, this Agreement not only diversifies Europe’s energy sources but also opens new opportunities for economic cooperation among the participating countries.
It’s worth noting that, at a meeting in Tashkent on May 1, the heads of the energy ministries of Kazakhstan, Uzbekistan, and Azerbaijan reached an agreement to establish a major energy corridor to Europe, marking the beginning of cooperation to interconnect their energy systems.
