The European Bank for Reconstruction and Development (EBRD) could potentially participate in the financing of a project to lay a deep-sea electric cable across the Black Sea (Black Sea Energy), Grzegorz Zieliński, director, head of Energy Europe Team at the EBRD, told Report.
He noted that the EBRD acknowledges that this is an extremely complex cross-border infrastructure project: "Feasibility study is an important first step, but it is only the beginning in terms of turning the idea into a bankable project."
He said the EBRD sees the respective transmission system operators in the interested countries as natural project sponsors.
"The EBRD could support project preparation, particularly on environmental and social aspects, and then consider financing once the project is ready. We could also, potentially, help to structure the project as well as arrange the financing - mobilising private-sector lenders alongside the EBRD's own long-term financing." Zieliński told Report.
According to him, technological risks are key for this project as it will be the longest and deepest deep-water electricity cable. "It is also important to align the regulatory environment in the exporting countries with EU regulations."
On December 17, 2022, Azerbaijan, Georgia, Romania, and Hungary signed a strategic partnership agreement for the construction of the Black Sea Energy underwater electric cable with a total length of 1,195 km.
In June 2023, Bulgaria's intention to join the project became known. In May 2024, energy operators of Azerbaijan, Romania, Georgia, and Hungary signed a memorandum on the establishment of a joint venture for the implementation of the Black Sea Energy project.
In September of the same year, a shareholders' agreement was concluded between the energy operators of the four states - Azerenerji JSC, Transelectrica SA, Georgian State Electrosystem, and MVM - on the establishment of the joint venture Green Energy Corridor, which will undertake the implementation of the project. The founding partners of the joint venture are the energy operators Transelectrica (Romania), Georgian State Electrosystem (Georgia), Azerenerji, and MVM Energy (Hungary).
In April 2026, the EU officially included the Black Sea Energy Cable (Black Sea Energy) project in the list of Projects of Mutual Interest (PMI). At the initial stage, the cable will be designed to transmit 4 GW of green energy. The construction cost of the Black Sea Energy Cable is estimated at 3.5 billion euros, with an implementation timeline of 3 to 4 years. The European Commission intends to allocate 2.3 billion euros for the project.