Azerbaijan says Black Sea green power cable needs billions in funding

BAKU, Azerbaijan, October 22. Billions of dollars will be needed to implement the green energy corridor project designed to transmit electricity from Azerbaijan to Europe via an undersea cable across the Black Sea, Azerbaijani Deputy Energy Minister Elnur Soltanov told Trend on Thursday.

He said the project's feasibility study had confirmed its technical and economic viability.

“Azerbaijan began its journey as an oil-producing country around 150 years ago and, after gaining independence, also became a natural gas producer. In the 21st century, the next logical step is for Azerbaijan to become a green energy country. The country has significant renewable energy resources, particularly offshore wind power, whose potential can be scaled up,” he noted.

According to Soltanov, the feasibility study showed that Azerbaijan's renewable energy could be supplied to European countries westward, much like its oil and natural gas.

He also recalled the establishment of a joint venture involving Azerbaijan, Georgia, Romania and Hungary to advance the project.

“First came the idea, then the concept, followed by a feasibility study that confirmed the project's technical and economic viability. The next step is to determine how to implement it. We need to identify funding sources, including international financial institutions, to move from the idea, concept and feasibility study results to implementation,” Soltanov said.

He stressed that projects of this scale require investments worth billions of dollars and several years to complete.

“Rather than expecting quick results, we need to maintain a strategic vision and focus on it,” he said.

On December 17, 2022, Azerbaijan, Georgia, Romania and Hungary signed a strategic partnership agreement providing for the construction of a 1,000-megawatt undersea power cable stretching 1,195 kilometers across the Black Sea.

The cable is intended to transmit green electricity generated in Azerbaijan and Georgia to Romania, from where it would be transported to Hungary and other European countries. The project aims to expand European countries' access to renewable energy resources in the Caucasus region.

In September 2024, electricity transmission system operators Transelectrica of Romania and Georgian State Electrosystem, Azerbaijan's AzerEnerji and Hungary's MVM established a joint venture to implement the Black Sea undersea cable project.