(MENAFN- AzerNews)
Nazrin Abdul
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Azerbaijan is adapting to emerging global challenges by
transitioning from its historical reliance on oil and gas
resources. While the country has traditionally depended on these
energy sources, it is now effectively pursuing economic
diversification. Promoting a sustainable energy future and
advancing a green Economy have become central priorities in
Azerbaijan's recent strategic initiatives.
Azerbaijan: From green energy producer to European
exporter
According to the "Agreement on Strategic Partnership in the
Field of Development and Transmission of Green Energy," signed in
Bucharest on December 17, 2022, Azerbaijan, Georgia, Romania, and
Hungary have established a cooperative framework. This project,
known as the "Caspian-Black Sea-Europe Green Energy Corridor" or
"Black Sea Cable," aims to transport green energy generated from
Azerbaijani wind power plants to Romania and, eventually,
Europe.
The agreement outlines the construction of an energy bridge from
the Caucasus region to Europe, connecting Azerbaijan, Georgia,
Romania, and Hungary. The project includes the development of the
"Black Sea Cable," a 1,195-kilometer submarine electric cable with
a capacity of 1,000 megawatts. This cable will transport green
electricity produced in Azerbaijan through Georgia and across the
Black Sea to Romania, Hungary, and the rest of Europe, enabling up
to four gigawatts of green energy supply.
On September 3, the 8th Ministerial/Steering Committee meeting
was held in Bucharest to advance the implementation of this
agreement. Azerbaijan was represented by Energy Minister Parviz
Shahbazov, Romania by Energy Minister Sebastian-Ioan Burduja and
Secretary General Mircea Abrudean, Georgia by First Deputy Prime
Minister and Minister of Economy and Sustainable Development Levan
Davitashvili, and Hungary by Foreign Affairs and Trade Minister
Peter Szijjártó. Representatives from Bulgaria, the European
Commission, transmission system operators, and the "CESI" company
also participated.
The meeting addressed the status of the technical and economic
justification (TEJ) conducted by the CESI company, progress on
establishing the Joint Venture, the fiber-optic component of the
green energy corridor, and the potential integration of Bulgaria
into the project.
Minister Shahbazov highlighted that the preliminary results of
the feasibility study for the "Caspian-Black Sea-European Green
Energy Corridor" will be presented at COP29 in Baku this November.
He also offered recommendations to ensure the project's
progress.
Shahbazov emphasized Azerbaijan's role as the primary resource
provider for the Green Energy Corridor and its future as a key
partner in renewable energy for Europe. He noted that with the
signing of the founding documents for the Joint Venture, the
project has entered a new phase. The "Joint Enterprise - Green
Energy Corridor Energy Company" will finance the technical and
economic evaluations, oversee project preparation and
implementation, and manage measures entrusted by the participating
countries.
Joint Venture established in Bucharest
Following the discussions, the "Shareholder Agreement" was
signed, establishing a Joint Venture in Bucharest between
Azerbaijan's "Azerenergy," Georgia's "Georgia State Electrosystem,"
Romania's "Transelectrica," and Hungary's "MVM." Additionally, a
Protocol on the results of the meeting was signed. The Joint
Venture and the Working Group were tasked with accelerating
processes with the consulting company to complete the technical and
economic feasibility study within the specified timeframe,
preparing the Joint Venture's action plan ahead of the next
ministers' meeting, and initiating consultations on business models
for the project.
It was agreed that the leadership of BM-Green Corridor Energy
Company would follow a rotational basis. Tasks related to the Fiber
Optic Cable Line (FOC) and the integration of Bulgaria into the
project will be incorporated into the feasibility study of the
quadrilateral project.
Furthermore, the parties agreed to collectively apply for status
under the European Commission's process launched in September 2024
concerning the second list of Projects of Common Interest (PCI/PM).
Support was also expressed for hosting a high-level event dedicated
to the Project during the COP29 Climate Leaders Summit.
Hungary seeks European Union support for Black Sea Cable
project
At a meeting in Bucharest focused on the
Hungarian-Azerbaijan-Georgia-Romania "green energy" partnership,
Hungarian Minister of Foreign Affairs and Trade, Peter Szijjártó,
highlighted the need for financial support from the European Union
for the Black Sea Cable project.
Minister Szijjártó emphasized that the project, which aims to
export "green" electricity from Azerbaijan and Georgia to Hungary
and Romania, is nearing a critical juncture. He underscored that
energy security is a fundamental aspect of national security during
these challenging times.
Hungary's energy strategy revolves around four key pillars:
expanding nuclear power, significantly increasing solar power
capacity, seeking cooperation with reliable energy suppliers, and
exploring new supply routes.
The "Green Energy Corridor" project is expected to introduce new
"green" energy sources from Georgia and Azerbaijan, enhancing the
sustainability of Hungary's electricity consumption. Szijjártó
noted that the project is advancing swiftly, with energy companies
from the participating countries having established a joint venture
and planning to sign a partnership agreement in the near future. He
expressed hope that the European Union will provide the necessary
financial support to develop the infrastructure for this
initiative.
The European Commission is anticipated to allocate €2.3 billion
to support the project.
World Bank Loan Supports Regional Energy
Projects
The World Bank's Board of Executive Directors recently approved
a $35 million loan for the first phase of the Enhancing Energy
Security through Power Interconnection and Renewable Energy
(ESPIRE) Program for Georgia. This initiative is a key part of a
broader $500 million program aimed at boosting Georgia's
institutional capacity for submarine cable projects, enhancing its
domestic power transmission system, and establishing a direct
electricity interconnection between the South Caucasus and
Southeast Europe.
The ESPIRE Program also focuses on improving digital
connectivity by reducing internet costs and enhancing bandwidth
through parallel fiber-optic interconnections across the Black Sea.
This support aligns with the goals of the Black Sea Submarine Cable
(BSSC) Project, which aims to create an integrated network of
electricity and fiber-optic cables linking Georgia and Romania,
further integrating regional energy and digital
infrastructures.
Romanian Energy Minister: Caucasian energy market to
lower prices in Europe
Romanian Energy Minister Sebastian-Ioan Burdujan has highlighted
the potential impact of the Black Sea Energy Cable project on
energy costs in Europe. Speaking about the project, Burdujan
emphasized that accessing energy from the Caucasian market,
specifically Azerbaijan, could lead to significant benefits for
European countries.
"The availability of energy from a distinct market like the
Caucasian region will diversify supply sources and contribute to
lowering energy prices in our region," Burdujan stated. He added
that the project's presentation at COP29 in Baku this November will
provide further insights.
While acknowledging that the Black Sea Cable project is costly,
Burdujan noted that the exact cost will be determined once the
Technical Impact Assessment (TIA) is complete. He estimated that
the construction of the submarine cable line between Georgia and
Romania will require approximately €3.5 billion. Despite the high
cost, he affirmed that the project will enhance energy security and
market stability.
Additionally, Burdujan mentioned that the project includes the
installation of a fiber-optic communication cable. The TIA will
assess the feasibility of this component, which aims to connect the
four participating countries and support regional information flow
and digitalization.
In conclusion, the collaboration among Azerbaijan, Georgia,
Romania, and Hungary underscores a commitment to enhancing energy
security and sustainability across the region. As the project
progresses, with financial backing from the European Union
anticipated, it is expected to play a crucial role in diversifying
energy sources, reducing costs, and supporting regional digital
infrastructure. The forthcoming presentation of the Technical
Impact Assessment at COP29 will provide further insights into the
project's impact and future developments.
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