The recent and profound shifts in the geopolitical landscape of the Middle East have created an unprecedented vacuum in regional infrastructure, particularly within the energy sector. Following the extensive degradation of Iran’s domestic power generation capabilities during the recent military escalations, the question of regional energy security has moved to the forefront of economic discussion. As the summer months approach, a period traditionally marked by extreme thermal stress and peaking electricity demand across the Iranian plateau, Azerbaijan finds itself in a unique position to act as a stabilizing economic conduit. The existing electricity export and exchange frameworks between Baku and Tehran, which have functioned with technical efficiency for years, are now poised to undergo their most significant test.

From an objective economic standpoint, the destruction of large-scale generation assets within a country does not merely represent a loss of physical capital; it creates a massive supply-demand imbalance that must be corrected to prevent a total systemic collapse. While reports suggest that the cross-border distribution networks and high-voltage substations connecting Azerbaijan and Iran remain intact, the loss of internal Iranian power plants means that the "source" of the grid has been severed while the "vessels" remain open. For Azerbaijan,........

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