Azerbaijan has signed two grant agreements totaling $1.1 million with the Asian Infrastructure Investment Bank to advance a Caspian green energy corridor and offshore wind development, according to Vesti Baku.
The larger grant, worth $1 million, will support preparation of the Caspian Green Energy Corridor project. A separate $100,000 grant will fund a conceptual study of the onshore infrastructure needed to support large offshore wind farms in the Caspian Sea.
Agreements Cover Early-Stage Work
The agreements were signed by Azerbaijani Energy Minister Parviz Shahbazov and Konstantin Limitovskiy, AIIB’s chief investment officer for public-sector clients in Region 2 as well as project and corporate clients. AIIB is acting as an implementing partner for the Multilateral Cooperation Center for Development Finance.
The grants cover preparatory work rather than construction of power plants or transmission infrastructure. The studies are intended to define technical requirements, assess feasibility and create a basis for later investment decisions.
Trans-Caspian Energy Link
Before the signing, the sides discussed technical and economic preparations for a Central Asia-Azerbaijan energy corridor and broader cooperation on offshore wind resources.
The planned corridor is intended to connect the electricity systems of Azerbaijan, Kazakhstan and Uzbekistan and facilitate the transmission of renewable power across the Caspian. Azerbaijan’s Energy Ministry has said the project could link Central Asian clean-energy resources to wider export routes through Azerbaijan and onward to European markets. The ministry has also confirmed AIIB and Asian Development Bank support for the project’s feasibility work in an official statement.
The two new grants are part of Azerbaijan’s broader effort to develop offshore wind capacity and position the Caspian region as a source and transit hub for renewable electricity.