Orkhan Zeynalov: Launch of Caspian-Black Sea-Europe energy corridor planned for 2032

The launch of the Caspian-Black Sea-Europe green energy corridor is planned for 2032, Azerbaijani Deputy Minister of Energy Orkhan Zeynalov said in an interview with NE Global, Report informs.

Zeynalov recalled that within the framework of this project, Azerbaijan is working with Georgia, Romania and Hungary.

"We plan to export up to four GW but in a phased approach – 1.3 GW, 1.3 GW, 1.3 GW. So, at each phase, there will be one cable, and the start is planned for 2032,” he said.

According to the deputy energy minister, the feasibility study is already underway and in the concluding phases, in the coming months, a commercial investment model will be ready. “The potential here is very good, the source will be windfarms offshore Azerbaijan going all the way though the HVDC (high voltage direct current) cable to Georgia and the subsea cable through the Black Sea to Romania and entering Hungary. Bulgaria has expressed interest," he said.

"We have already submitted the application to the 10-year network development plan and our joint venture, which has been established in Bucharest this year, the GECO Green Energy Corridor Power Company and next year we will also apply for PMI – Project of Mutual Interest from the Commission. This is a strategic project because first it provides connectivity between the Caspian Sea, Black Sea and Southeast Europe. Second, if you see the prices generally in Southeast Europe are a bit high so the extra energy can also stabilize the market and lower the prices so it’s very good for the end customers," Zeynalov noted.

In December 2022, Azerbaijan, Georgia, Romania and Hungary signed a strategic partnership agreement for the construction of the Black Sea Energy Submarine Cable. In 2023, Bulgaria's intention to join the project was announced. That same year, the Bulgarian Council of Ministers approved the participation of Bulgarian Energy Holding EAD in the joint venture to implement the project.

In May 2024, energy operators of Azerbaijan, Romania, Georgia and Hungary - Azerenergy OJSC, Transelectrica SA, Georgian State Electrosystem and MVM - signed a memorandum on the establishment of a joint venture, and in September, a shareholder agreement was concluded on the establishment of a joint venture, Green Energy Corridor.

At the initial stage, the cable will be designed to export 4 GW of green energy. Construction is estimated at 3.5 billion euros and will take 3-4 years. The European Commission plans to allocate 2.3 billion euros for the project.