Europe turns to Caspian green power as Turkey, Bulgaria, Azerbaijan and Georgia advance new energy corridor

Turkey, Azerbaijan, Georgia and Bulgaria agreed on Friday to establish a joint company that will supervise the financing and implementation of a green electricity transmission corridor linking the Caspian region with European markets, marking the most concrete step so far in a project that has steadily gained strategic relevance amid continued turbulence in global energy markets.

The decision was taken during a quadrilateral ministerial meeting in Istanbul attended by Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar, Azerbaijan’s Energy Minister Parviz Shahbazov, Georgia’s Minister of Economy and Sustainable Development Mariam Kvrivishvili and Bulgaria’s Deputy Energy Minister Kiril Temelkov.

According to Azerbaijan’s state news agency AZERTAC, the four countries’ electricity transmission system operators agreed to create the joint company in order to manage the technical feasibility study and coordinate the implementation of the project. The feasibility work is already underway and is expected to conclude within the coming months.

The initiative foresees renewable electricity generated in Azerbaijan and Georgia being transmitted through Turkey’s national grid to Bulgaria’s interconnection points and onward into wider European electricity markets. The framework also includes a connection through Nakhchivan, Azerbaijan’s exclave bordering eastern Turkey, as well as possible future links through the Zangezur Corridor that could eventually facilitate Central Asian electricity flows toward Europe.

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The project has been developing since at least May 2025, when the four countries first discussed the concept during an Istanbul energy forum. A memorandum of understanding signed in Baku on 4 April 2025 formalised the framework and instructed transmission operators to begin technical preparations. Friday’s meeting in Istanbul was the third ministerial-level gathering linked to the initiative, but the first to produce a concrete institutional mechanism through the establishment of a joint company.

The memorandum covers joint investment projects, electricity infrastructure development and integration with the European Network of Transmission System Operators for Electricity (ENTSO-E), positioning the corridor within the EU’s broader energy connectivity framework.

Azerbaijan is expected to serve as the main source of electricity for the corridor. The country plans to develop more than 10,000 megawatts of renewable energy capacity and intends to export around 4,000 megawatts to European markets. Officials in Baku have presented the project as a natural extension of Azerbaijan’s existing cross-border energy infrastructure, including the Southern Gas Corridor and the Trans-Anatolian Natural Gas Pipeline (TANAP).

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Turkey occupies a dual position in the project, acting both as a transit country for electricity moving toward Europe and as a destination market able to use part of the corridor’s capacity domestically. In April 2025, the Turkish Electricity Transmission Corporation TEIAŞ signed an operational cooperation agreement with Azerbaijan’s state electricity producer Azerenerji, laying the institutional basis for the transit arrangement. Under the existing Nakhchivan connection, Turkey currently holds 75 megawatts of import capacity and 40 megawatts of export capacity.

For Bulgaria, the corridor represents a strategic entry point for Caspian-sourced renewable electricity into southeastern and central European markets. As an EU and NATO member with established grid connections across the region, Bulgaria is positioned as the European anchor of the initiative.

The project also fits into the EU’s broader efforts to diversify energy supply routes and reduce dependence on Russian energy imports through alternative corridors and sources.

The agreement in Istanbul came as Europe continues to grapple with the consequences of disruptions linked to the Strait of Hormuz. Since late February, Iran’s effective closure of the strait has removed around 20 percent of global liquefied natural gas supply from circulation, according to the International Energy Agency, contributing to a sharp rise in European gas and electricity prices. The European TTF gas benchmark remains roughly 50 percent above pre-conflict levels.

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Against that backdrop, alternative overland energy corridors have acquired increasing strategic importance.

Speaking a day before the ministerial meeting at the International Natural Resources Summit in Istanbul, Bayraktar said the world had entered “an age of uncertainty marked by wars, supply chain disruptions, energy crises and intensifying global competition over critical minerals and strategic infrastructure”. He pointed to the green electricity corridor as part of Turkey’s broader ambition to reshape regional energy routes.

Shahbazov similarly described Azerbaijan as helping shape “new regional cooperation through green energy”, underlining Baku’s role as a reliable energy partner for southeastern Europe. He also argued that future electricity links through the Zangezur Corridor could strengthen Turkey’s position as a regional energy hub and eventually support the westward transmission of Central Asian electricity.

The electricity initiative forms part of a wider energy architecture promoted by Turkey during this week’s Istanbul summit. On the same day as the ministerial meeting, state pipeline operator BOTAŞ signed a memorandum of understanding with Italy’s Edison S.p.A. on possible cooperation in natural gas and LNG, including a study into a hydrogen-ready gas interconnection between Turkey and Italy.

Bulgarian Deputy Energy Minister Temelkov said a roadmap would now be prepared in order to identify and accelerate implementation activities related to the green energy corridor between Azerbaijan and Bulgaria. He stressed that the energy ministries of the four participating countries had reaffirmed both their commitment to the project and its strategic importance for strengthening energy connectivity between southeastern Europe and the Caspian region.

Temelkov also argued during a panel discussion in Istanbul that supply security depended above all on connectivity and diversification, while affordability and decarbonisation remained equally important elements of the transition.

According to him, a balanced energy strategy requires a combination of reliable and environmentally sustainable solutions, including nuclear power, gas, hydropower, wind and solar energy. He added that stronger grid interconnectivity would allow countries to use their available resources more efficiently while sharing energy across borders in a way that delivers wider socio-economic benefits.

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The full article in Turkish by EUalive’s partner Bosphorus News – here. Additional source: Bulgarian Energy Ministry.

Caption: The quadrilateral ministerial meeting in Istanbul was attended by Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar, Azerbaijan’s Energy Minister Parviz Shahbazov, Georgia’s Minister of Economy and Sustainable Development Mariam Kvrivishvili and Bulgaria’s Deputy Energy Minister Kiril Temelkov./Bulgarian Ministry of Energy