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Ulviyya Poladova

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Azerbaijan has signed two grant agreements with the Asian Infrastructure Investment Bank (AIIB) to support the development of offshore wind energy infrastructure and the Caspian Green Energy Corridor project.

The agreements were signed during an online meeting between Energy Minister Parviz Shahbazov and delegations from the AIIB and the Multilateral Cooperation Center for Development Finance (MCDF).

According to the Energy Ministry, the meeting highlighted the bank’s support for the feasibility study of the Central Asia-Azerbaijan Green Energy Corridor project, as well as opportunities to expand cooperation in harnessing offshore wind energy potential.

The agreements were signed by Energy Minister Parviz Shahbazov on behalf of the Azerbaijani government and Konstantin Limitovski, AIIB Chief Investment Officer for Public Sector (Region 2) and Project and Corporate Finance (Global) clients.

The agreements cover the "Project Preparation for the Caspian Green Energy Corridor" and the "Concept for Coastal Infrastructure Supporting a Large-Scale Offshore Wind Farm in Azerbaijan."

"These agreements represent further international support for Azerbaijan’s strategic goals of large-scale offshore wind energy development in the Caspian Sea and the transmission of green energy across regional and intercontinental routes," Shahbazov said.

He noted that the cooperation would support the development of coastal infrastructure required to harness offshore wind energy and help establish a green energy corridor linking Azerbaijan, Kazakhstan and Uzbekistan.

According to the minister, both projects are important for turning Azerbaijan’s substantial renewable energy potential into economic value, facilitating exports of green energy resources from the Caspian region and Central Asia, and strengthening the country’s strategic role in regional energy integration.

Shahbazov also expressed appreciation for the AIIB’s support for Azerbaijan’s green energy initiatives.

Limitovski said the agreements were the first two grant agreements signed between the AIIB and Azerbaijan for projects supported by the MCDF. He added that the milestone would create new opportunities for cooperation in project preparation, help attract future investment in sustainable energy infrastructure and strengthen regional connectivity.

Under the agreements, $1 million will be allocated to the preparation of the Caspian Green Energy Corridor project, while $100,000 will support a conceptual study for coastal infrastructure designed to serve large-scale offshore wind farms in Azerbaijan.