Central Asia is transforming the Caspian into an energy bridge, opening a direct path to the European market via Azerbaijan.
From June 1 to 3, Baku will once again become a key platform for discussing the future of regional energy within the framework of Baku Energy Week. The event combines the 31st Caspian Oil & Gas International Exhibition, the 14th Caspian Power International Exhibition for Clean Energy, and the 31st Baku Energy Forum. The forum has long expanded beyond the traditional oil and gas agenda, serving as a practical platform to discuss specific integration mechanisms for Central Asia, the South Caucasus, and Europe through energy transit, green generation, and new infrastructure projects.
For Central Asia, this is a matter of both energy transformation and the diversification of export routes. Kazakhstan, Uzbekistan, and Turkmenistan possess significant potential in solar and wind energy; however, tapping into external markets requires a reliable transit route. Azerbaijan already acts as a connecting hub due to the existing infrastructure of the Southern Gas Corridor, its geographical location, and extensive experience working with international energy companies.
The central project remains the Trans-Caspian Green Energy Corridor. The joint venture for the Green Corridor Union, established by Azerbaijan, Kazakhstan, and Uzbekistan, is already working on the project's feasibility study with support from the Asian Development Bank and the Asian Infrastructure Investment Bank. The completion of this study is expected in 2026–2027.
The project outlines the deployment of a subsea cable across the Caspian Sea with an initial transmission capacity of around 4 gigawatts starting from 2032, expanding to 6 gigawatts in later stages. By 2030, the integration of up to 5 gigawatts of renewable energy capacity is expected. This is no longer just a political declaration, but an infrastructure initiative backed by concrete financial and institutional support.
Economic indicators confirm the accelerating pace of this integration. During the first nine months of 2025, Azerbaijan's trade turnover with Central Asian countries grew by 58%, exceeding $1 billion. Kazakhstan accounted for approximately $600 million of this total, marking an increase of $224.5 million compared to the previous year. Trade with Uzbekistan reached $472.5 million. The long-term goal is to scale up mutual trade turnover in the "Central Asia plus Azerbaijan" format to $20 billion.
The expansion of cooperation is accompanied by large-scale investments. Foreign direct investment from Asian countries into Central Asia increased 2.3 times - rising from $29.9 billion in 2016 to $68 billion by mid-2025. Energy remains the main driver of this growth. The Eurasian Development Bank has already formed a green portfolio worth $2 billion, half of which is directed toward renewable energy sources (RES) projects. Since 2015, the bank has financed the creation of 1.2 gigawatts of renewable capacity.
Azerbaijan is actively boosting its own energy potential, reinforcing its role as a reliable link. The country's installed RES capacity grew from 1,184 megawatts (MW) in 2016 to 1,826 MW in 2025. The share of renewable sources in the overall generation mix increased from 5.5% in 2020 to 13.5% in 2024. Among the largest ongoing projects are the 445 MW Bilasuvar solar power plant, the 315 MW Neftchala solar power plant, the 240 MW "Shafag" solar power station, and the 240 MW Khizi wind power plant.
The vast potential of the Caspian itself serves as an additional catalyst. Estimates for offshore wind energy in the Caspian Sea reach up to 845 GW, while the solar potential of Central Asia, including Turkmenistan, is estimated in hundreds of gigawatts. Against this backdrop, planned investments in the energy infrastructure of Central Asia and the Caucasus have already reached $289 billion.
During Baku Energy Week 2026, the signing of new memoranda on the development of the Trans-Caspian Green Energy Corridor, agreements on solar and wind projects, and the hosting of a dedicated Central Asia Energy Transition Investment Forum with the participation of the International Renewable Energy Agency (IRENA) are expected. The agenda will focus on energy storage, grid digitalization, green hydrogen, and the development of the Middle Corridor.
Such platforms demonstrate how the region is shifting from declarations to active implementation. Azerbaijan performs a vital binding function here, not only as the host of the forum but as a strategic energy and logistics hub. By connecting the resource potential of Central Asia with European markets, Baku is translating its geographical position into working infrastructure and shaping the foundation for a new energy architecture across the entire region.
