(MENAFN- Trend News Agency)
BAKU, Azerbaijan, December 26. Within the
framework of President Ilham Aliyev's visit to Romania, the
'Agreement between the governments of the Republic of Azerbaijan,
Georgia, Romania and Hungary on strategic partnership in the field
of development and transfer of green energy' was signed on December
The agreement essentially opens a new stage in Azerbaijani-EU
energy cooperation, laying the foundation for a 'green corridor'
connecting the South Caucasus with Europe.
As Allan Mustard, co-founder and co-head of the Trans-Caspian
Resources energy startup, Former US Ambassador to Turkmenistan,
told trend ,
Azerbaijan is blessed with abundant potential for solar and wind
energy production, and also has some hydroelectric and geothermal
'Thus, Azerbaijan will likely play a critical role in providing
electricity to Europe. Delivery of electricity is cost-competitive
with pipeline natural gas, since transportation accounts for about
10 percent of the delivered cost, and is even more competitive when
compared to transportation of liquified natural gas,' he said.
According to the ex-ambassador, given the EU's dire need to
replace 155 billion cubic meters per year of Russian natural gas,
as well as the 40 percent of its oil consumption that in recent
years has come from Russia, it is clearly in the best interests of
more European countries to collaborate on the development of green
'The transition to renewable energy from fossil fuels will take
decades and will be a multinational endeavor. Therefore agreements
on cooperation in green energy make complete sense. The investment
required is huge and achieving economies of scale in infrastructure
will be crucial to contain costs,' Mustard noted.
Thus, the agreement signed between Azerbaijan, Georgia, Romania,
and Hungary serve as a joining force between the energy systems of
those countries. As a follow-up of the memorandum on cooperation in
the energy sector signed in July this year between Azerbaijan and
the EU, which, besides doubling the supply of Azerbaijani gas to
Europe, also provides for boosting cooperation in renewables, this
agreement benefits both Azerbaijan and Europe in terms of the
transition to clean energy. Azerbaijan, having established itself
as a reliable gas supplier already, will also assist its partners
in the transition to clean energy sources, and, at the same time,
strengthen its own economy.