BAKU, Azerbaijan, September 2. Azerbaijan and Uzbekistan are emerging as regional leaders in renewable energy development, Trend reports via Moody’s.
“The constraints of existing power generation capabilities are putting focus on greater regional interconnectedness and the need to develop vast renewable energy potential, particularly the opportunity for wind power in the north and solar power in the south.
Intergovernmental plans are underway to establish a Caspian Green Energy Corridor to facilitate cross-border electricity trade in Azerbaijan, Kazakhstan and Uzbekistan. At the same time, many countries in the region have initiated energy sector reforms aimed at creating competitive power sectors and attracting private investment. Azerbaijan and Uzbekistan are emerging as regional leaders in renewable energy development,” Moody’s said in its latest report.
The rating agency notes that recent diplomatic breakthroughs — including border agreements between Kazakhstan and Uzbekistan in 2022, Kyrgyz Republic and Uzbekistan in 2023, and Kyrgyz Republic and Tajikistan in March 2025 — have laid the groundwork for enhanced energy connectivity.
The peace agreement initialed between Armenia and Azerbaijan on 8 August 2025 further supports regional stability, notes Moody's.
Moody’s analysts believe that growing intraregional trade across Central Asia and the Caucasus underscores the potential for greater energy interconnectedness.
“Trade volumes within the region nearly doubled between 2017 and 2023 as a result of improved relations, infrastructure investment and the development of the Middle Corridor — a multimodal trade route linking China and Europe via Central Asia and the South Caucasus. Inbound and intraregional travel also rose by 40%, to 31.5 million arrivals in 2023 from 22.5 million in 2015,” said the report.