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A meeting of energy and economy ministers from the three countries, held in Azerbaijan's capital Baku in November last year, established the basic conditions for energy cooperation between the three nations.
But now it's official: Azerbaijan's Minister of Economy, Mikayil Jabbarov, announced the end of negotiations on his official X page.
“At the trilateral meeting of the ministers of economy and energy of Azerbaijan, Uzbekistan and Kazakhstan, which was held as part of our working visit to Uzbekistan, we signed the memorandum of understanding on the merger of the energy systems of Azerbaijan, Kazakhstan and Uzbekistan,” Jabbarov wrote after the Tashkent International Investment Forum
A key component of the plan involves investigating the feasibility of laying a high-voltage cable along the seabed of the Caspian Sea alongside ventures within other territories. This move primarily aims to optimize the trade of green energy among the three countries, harnessing technical and economic efficiencies.
Central Asia is rich in traditional energy resources such as oil and natural gas, but it is also faced with an increasing demand for energy, growing environmental concerns and the need to diversify its energy sources. In this context, exploring new avenues of collaboration in the energy field is of particular interest to all three countries, in order to ensure energy security and promote sustainable development in the region.
The merger of the energy systems of Azerbaijan, Kazakhstan and Uzbekistan has several strategic objectives:
1. Promoting green energy: One of the main aims of this collaboration is to encourage the production and use of renewable energies, such as wind and solar power. By integrating these clean energy sources into their energy systems, the three countries hope to reduce their dependence on fossil fuels and contribute to the global fight against climate change.
2. Regional integration: Merging their energy systems strengthens the economic and political ties between the three nations, fostering regional integration. By working together to develop and exploit their energy resources, they strengthen their cooperation and interdependence, which could have positive implications for the stability and prosperity of the region as a whole.
3. Market diversification: By exporting energy to Europe via Azerbaijan, the three countries are diversifying their energy markets and reducing their dependence on traditional markets. This opens up new economic opportunities and strengthens their position on the global energy scene.
This fusions offers several important benefits and impacts:
1. Energy stability: By combining their energy resources and infrastructures, the three countries strengthen their energy stability and reduce the risks associated with energy supply failures or disruptions.
2. Economic development: Collaboration in the energy field creates new economic opportunities, notably by stimulating investment in energy infrastructure, creating jobs in the renewable energy sector and promoting regional economic development.
3. Reducing emissions: By promoting the use of renewable energies, merging energy systems helps to reduce greenhouse gas emissions and mitigate the effects of climate change, benefiting both the environment and public health.
4. Strengthening international relations: Energy collaboration between Azerbaijan, Kazakhstan and Uzbekistan strengthens their relations with other nations and international organizations, reinforcing their position on the world stage and promoting energy diplomacy.
Despite the many potential benefits of merging energy systems, several challenges and obstacles also need to be overcome:
1. Technical complexity: Integrating the energy infrastructures of three different countries presents complex technical challenges, particularly in terms of interoperability, safety and reliability.
2. CAPEX: The development and implementation of energy infrastructure projects requires significant capital investment, which can be a financial obstacle for some countries, particularly in a difficult economic climate.
3. Geopolitical issues: Geopolitical relations between countries in the region and with other international players could influence the successful implementation of energy system mergers, particularly with regard to issues of sovereignty, security and governance.
In the midst of an energy and electricity crisis, Uzbekistan, for example, is seeking to develop renewable energies to meet the threat of climate change. The country has set itself the ambitious target of achieving a renewable energy power generation capacity of over 30% (around 15 gigawatts) by 2030. Uzbekistan has an average of 330 days of sunshine a year, and the potential for solar energy is enormous. At present, the country has only two large-scale solar farms, each with a capacity of 100 megawatts.
If climate change is everyone's business, Peers is delighted that an agreement has been reached and that the region is taking the necessary steps to anticipate the material and human needs that this great cause entails.
