New steps towards a green energy corridor between the Caspian Sea, the Black Sea and Europe

The 10th meeting of the Ministerial Committee was convened in Budapest with the aim of implementing the 'Strategic Partnership Agreement on Green Energy Development and Transmission between the Governments of the Republic of Azerbaijan, Georgia, Romania and Hungary.
The Azerbaijani delegation was led by the Minister of Energy, Parviz Shahbazov, while the Hungarian delegation was represented by the Minister of Foreign Affairs and Trade, Péter Szijjártó; the Georgian delegation was led by the First Deputy Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili; the Romanian delegation was led by the Minister of Energy, Sebastian-Ioan Burduja; and the Bulgarian delegation was led by the Minister of Energy, Zhecho Stankov. The meeting was also attended by representatives of the European Commission, the joint venture (GECO Power Company) and CESI.
In the course of the meeting, the development of Azerbaijan's renewable energy potential was reviewed, as were the project's current progress and future prospects. In addition to this, issues pertaining to the activities of the Green Energy Corridor Energy Company (GECO) were discussed, as well as the involvement of Bulgaria in the project. Furthermore, the current status of the feasibility study (FS) conducted by CESI was reviewed, as was the cooperation with the European Union (EU) on project financing.
In a statement delivered in Budapest, the Minister of Foreign Affairs and Trade asserted that the future of the Hungarian economy and environmental protection is contingent upon the adoption of green energy, and that the country has taken a significant step towards achieving related objectives through the establishment of extensive international cooperation. Addressing the press following the steering committee meeting of the so-named «green energy corridor», Peter Szijjártó stated that a declaration of intent on cooperation in the domain of green energy had been signed by Hungary, Azerbaijan, Georgia, Romania, Bulgaria and Hungary. This will facilitate the coordination of their green energy strategies, developments and innovations through a common platform. Electricity companies from the five countries will establish a joint venture to oversee the technical and technological implementation of the project, he stated during a joint press conference with the energy ministers of Azerbaijan, Georgia and Romania, as well as Bulgaria's deputy energy minister, according to the ministry. Furthermore, a tender for a joint feasibility study will be announced, with the winner to be determined in the early stages of next month, he stated. Szijjártó further elaborated that the participating countries would be taking joint measures to ensure the project's financial resources are secured. It is noteworthy that the European Commission was also in attendance at the meeting. The minister observed that Hungary's electricity consumption is increasing and the country intends to generate this electricity without carbon dioxide emissions. Consequently, it is expanding its nuclear and solar power capacity. Szijjártó emphasised the significance of ensuring that the electricity imported by Hungary is also carbon neutral, underscoring the pivotal role of the green energy corridor in this regard. In this regard, he has collaborated with Azerbaijan, Georgia, Romania and Bulgaria to facilitate the importation of substantial quantities of green energy to Europe. Szijjártó further elaborated on the strategic importance of this initiative, highlighting the substantial investments made by Azerbaijan and Georgia in their hydro and wind power sectors. He also emphasised the ongoing development of infrastructure in Central Europe, underscoring the region's commitment to processing a significant portion of the green energy imported from the South Caucasus for domestic consumption and further transportation westward. The project, he stated, necessitates the establishment of a connection between Georgia and Romania with the world's most extensive submarine cable, which measures 1,100 kilometres in length. If all goes according to plan, energy deliveries along this route could begin as early as the beginning of the next decade. In response to a query regarding the project's implications, Szijjártó emphasised that the initiative underscores the tangible nature of energy imports, de-emphasising their political connotations or idealistic aspirations. Szijjártó also stated that the matter of European Union funding for the project was a European issue and that support for the modernisation of the infrastructure would be required.
Energy Minister Parviz Shahbazov has announced that work is underway on the relevant contractual documentation with a number of international wind energy companies in four identified areas in the Azerbaijani segment of the Caspian Sea. These agreements will also support plans to develop green hydrogen. He drew attention to the study recommendations related to the components of the power generation and transmission project, as well as business models and the distribution of potential Caspian Sea green energy volumes in the region. In close collaboration with GECO and CESI, it was proposed to establish two working streams within the working group: firstly, a stream that would concentrate on the business models of the project and undertake preparatory work to establish contacts with potential investors and buyers; and secondly, a stream that would examine technical details, compliance with the requirements of ENTSO-E and other relevant institutions. The Minister also emphasised the necessity of implementing decisive measures to incorporate the fibre optic component of the project within the scope of work related to the feasibility study.
In the aftermath of the deliberations, the Ministers of the four countries proceeded to affix their signatures to the Protocol on the outcomes of the meeting and the 'Joint Letter from Azerbaijan, Georgia, Romania, Hungary, to the European Commissioner for Energy Dan Jorgensen'. The purpose of the latter was to provide appropriate support for the granting of the status of Project of Common Interest (PCI) to the project entitled 'Caspian-Black Sea-European Green Energy Corridor'. It was agreed that the relevant application for inclusion of the project in the EU Ten Year Network Development Plan (TYNDP) will be submitted by Transelectrica as the transmission system operator between 1 April and 9 May 2025, and that the whole process will be jointly monitored with GECO. Furthermore, the initiation of the procedure for Bulgaria's accession to the Intergovernmental Agreement was also agreed. The Joint Venture has been granted the requisite authority to incorporate Bulgaria in the project and to address matters pertaining to the fibre optic cable (FOC) component of the feasibility study works. The meeting also saw the signing of the relevant document on the transfer of the main powers and obligations under the contract between the Ministry of Energy and CESI to GECO.
It should be noted that on 17 December 2022, a strategic partnership agreement was signed by Azerbaijan, Georgia, Romania and Hungary. This agreement includes plans to construct an undersea energy cable measuring 1,195 kilometres in length and with a capacity of 1,000 MW, which will run under the Black Sea. The cable will transmit green electricity generated in Azerbaijan and Georgia to Romania, with subsequent transport to Hungary and other European countries, thereby increasing Europe's access to renewable energy from the Caucasus region.

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