Tehran eyes Caspian energy boost, risking deeper dependence on Moscow

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The new push for an electricity grid linking Iran, Russia and Azerbaijan grid promises closer energy integration but could leave Tehran more exposed to Moscow’s leverage as rival corridors threaten to dilute its regional role.

In mid-October 2025, Azerbaijan’s deputy prime minister announced the formal launch of an electricity-linkage project among the three countries.

The plan builds on Iran’s 2024 proposal to route Russian electricity through its territory to Persian Gulf Arab states, advancing earlier diplomatic pledges. Full integration is targeted by late 2025, alongside coordination with Armenia.

Meanwhile, the EU-backed Black Sea Energy Corridor, launched in 2022, will send 4 GW of Azerbaijani wind and solar power to Europe by 2032. Faster, cleaner and politically safer, it already attracts more Western financing.

If momentum shifts toward the Black Sea route, Iran could lose as much as $10–15 billion in potential transit fees and influence, reinforcing its peripheral role in regional trade.

Source: Wikipedia