Empowering the European Super Grid: Azerbaijan's Strategic Role as a Hub Connecting Europe to Central Asia.

While researching the impact of political factors on energy transition investments for my master's thesis, I came across several articles discussing the European Super Grid. Simultaneously, I found another article about European Commissioner for Energy Kadri Simson's visit to Azerbaijan during the last week of February 2024.

Herein, I tried to connect the dots.

The European Super Grid:

In the dynamic landscape of global energy transitions, the emergence of the European Super Grid stands out as a transformative initiative with the potential to reshape the way energy is produced, transmitted, and consumed. Linked to the renewable energy projects like DESERTEC & Medgrid across North Africa, the Middle East and Europe, the European Super Grid hypotetically looks as following (Picture 1).

A recent study by academicians from the Univeristy Collge of Dublin, Energy Institute suggests that implementing a European-wide 'supergrid' has the potential to reduce energy costs by nearly one-third. The picture below shows the current state of supergrid systems accross the Europe (Picture 2).

EU Electricity Consumption Projections:

As the world grapples with the imperative of reducing carbon emissions, the European Union aims to meet ambitious energy consumption targets. Projections indicate that EU electricity consumption will range between 645 and 665 TWh by the year 2030, emphasizing the urgency of adopting sustainable energy solutions*.

Commissioner Kadri Simson's Visit to Azerbaijan:

During the visit to Azerbaijan in the scope of the 10th Southern Gas Corridor Advisory Council Ministerial Meeting and 2nd Green Energy Advisory Council Ministerial Meeting, the European Commissioner for Energy Kadri Simson was recieved by The President of the Republic of Azerbaijan Ilham Aliyev as well. The Commissioner Kadri Simson emphasized the importance and stability of Azerbaijan's role in Europe's energy supply.

What could be the role of Azerbaijan in the empowering Energy Transition of Europe?

At the heart of Europe's energy transition, the European Super Grid, a visionary project envisions an interconnected energy network spanning from the West in Iceland to the regions surrounding Europe's borders, including North Africa, the Middle East, and Turkey. Azerbaijan seems as a hub connecting dots in this grand scheme, positioned connecting Europe to Central Asia through a high-voltage direct current (HVDC) power grid, also potentially to become a new regional Super Grid (Picture 3).

How? And what is Azerbaijan's strategic significance?

The techinical estimations of 135 GW onshore and 157 GW offshore underscores Azerbaijan's crucial role not only in the region but also as a potential powerhouse in supplying clean and sustainable energy to the Europe*.

In Bucharest, on December 17, 2022, the presidents of Azerbaijan and European Commission and prime ministers of Georgia, Hungary, and Romania signed a strategic collaboration agreement pertaining to the development and transportation of green energy. Among other initiatives, the plan envisions the building of a 1 GW underwater electrical connection connecting Azerbaijan, Georgia, Romania, and Hungary. The intended link will be 1195 kilometres long. The EU will fund the €2.3 billion project, and work on it will take six years; a feasibility assessment is due by September 2023. In the end, the project will enable the EU to import "green" electricity generated in Azerbaijan*.

"The South Caucasus-EU green electricity bridge plan" is potentially a basement to accelerate and empower the European Super Grid by adding the renewable energy potential of the Central Asia, beyond Azerbaijan's borders, five Central Asian countries - Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan have a wealth of renewable energy resources. Herein, the combined potential of 30 GW for small hydropower, 3,760 GW for solar power, 354 GW for wind power, 54 GW for geothermal power, and 800 MW for bioenergy positions Central Asia as an added potential contributor to the European Super Grid*. .

So far, Azerbaijan has been particularly successful in attracting investors to its renewable projects; the country' RES potential first was caught the eye by Saudi Arabia’s ACWA Power and the United Arab Emirates’ Abu Dhabi Future Energy Company (Masdar). Masdar signed two solar and one onshore wind power agreement with a total capacity of 1 GW, while ACWA is developing a 240-megawatt wind power plant.

As a passionated person in climate tech and energy transition, I truely believe that Azerbaijan has this potential and by being hosted country for the COP29 (UN Climate Change Conference 2024), we will see impact on the approach to renewable energy and climate action in the region. Moreover, it will significantly influence and increase the potential to attract foreign direct investments, supporting the growth of the renewable energy industry in the region.

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