Expansion of energy cooperation with ADB was discussed

Energy Minister Parviz Shahbazov met with a delegation led by Satya Srinivas, Executive Director on the Board of Directors of the Asian Development Bank (ADB).

During the meeting, the long-standing energy cooperation between Azerbaijan and ADB was highly valued, and the development of partnership in renewable energy, regional green energy corridors, strengthening of electricity grids, development of offshore wind energy projects and heat supply was discussed.

The Minister provided information on Azerbaijan’s role in energy security and the work being carried out to diversify the energy system and develop renewable energy. It was noted that the share of renewable energy sources in total installed capacity is expected to exceed 30% next year. A grid study is being conducted to determine the potential for integrating additional green energy capacity into the power system. Against the backdrop of growing electricity demand driven by artificial intelligence, data centres and digitalisation, the importance of developing transmission capacity and regional interconnectors alongside new generation capacity was emphasised. Progress on the Caspian-Black Sea-Europe, Azerbaijan-Georgia-Türkiye-Bulgaria and Azerbaijan-Central Asia green energy corridors, as well as the green energy corridor towards Türkiye and Europe via Nakhchivan, was reviewed. It was noted that the feasibility study for the green energy corridor between Azerbaijan, Kazakhstan and Uzbekistan, being carried out with ADB support, is scheduled for completion in May 2027.

Information was provided on the results of the feasibility study for the Caspian-Black Sea-Europe Green Energy Corridor. The possibility of involving international financial institutions in financing the project, which is envisaged to be implemented in three phases with a total transmission capacity of approximately 4 GW, was also discussed.

The meeting also included an exchange of views on private sector participation in renewable energy projects, opportunities for ADB financial support, and the technical assistance project for the development of the heat supply sector.

It was noted that ADB’s priorities in climate action, private-sector development and regional cooperation are aligned with Azerbaijan’s energy agenda, and that there is significant potential to expand cooperation, particularly in renewable energy and regional connectivity.