BAKU, Azerbaijan, October 24. Siemens Energy is exploring opportunities to provide solutions for converter substations based on high-voltage direct current (HVDC) technology within the framework of the Caspian–Black Sea–Europe Green Energy Corridor project.
This was announced by the company’s Vice President for Türkiye, Central Asia, and Western Europe, Maxim Zubov, in a video posted on the Azerbaijani Ministry of Energy’s social media accounts, in which he shared his views on the forum “Green Energy Corridor: From Feasibility Study to Implementation.”
He noted that the company is also prepared to assist in establishing connections with potential electricity buyers in Europe. According to Zubov, the company views the project as a significant international initiative that supports the development of renewable energy sources, contributes to the diversification of Europe's energy supply, and strengthens ties among the participating countries. He noted that the project could also contribute to strengthening Azerbaijan's electricity grid.
"As one of Europe's leading suppliers of high-voltage direct current (HVDC) technologies, we are exploring opportunities to provide technological solutions for the project's HVDC converter substations," Zubov said.
According to him, the company's technical team is holding discussions with the client, representatives of the Green Energy Corridor project, and the design institute to identify optimal solutions for the project.
Zubov added that the company could support the implementation of the project by leveraging its network of clients and partners in Europe.
"We have an extensive network of clients and partners in Europe. In this regard, we are prepared to assist in organizing discussions and establishing connections with potential electricity buyers. We believe that, by doing so, we can make an additional contribution to the successful implementation of the project," the company executive emphasized.
Siemens Energy is an international company operating in the fields of power generation, electrical grids, energy storage systems, and the electrification of industrial processes. According to the company, it possesses over 150 years of experience in energy technologies. Siemens Energy operates in 90 countries and has approximately 100,000 employees.
Investment prospects for project
At a forum held in Baku, the results of the feasibility study for the Caspian–Black Sea–Europe Green Energy Corridor project were presented for the first time to international investors, financial institutions, and business partners. The event covered the project's investment attractiveness, business model, financing opportunities, and the establishment of new partnerships, as well as preparations for reaching the Final Investment Decision (FID).
According to the project's feasibility study, investments in electricity transmission infrastructure are projected to amount to 14.3 billion euro. The document was finalized in July 2026 and approved by the governments of Azerbaijan, Georgia, Romania, and Hungary. The project is currently in the development phase.
The study indicates that the project will have a total transmission capacity of 3.9 gigawatts (GW), involving the construction of three power lines, each with a capacity of 1.3 GW. The project's internal rate of return (IRR) is estimated at 11.7%.
Projections suggest that, starting in 2032, the corridor will be capable of transmitting 8 terawatt-hours (TWh) of renewable electricity annually to the European Union. By 2040, the annual transmission volume is expected to reach 20 TWh.
The feasibility study forecasts that revenues generated from managing transmission constraints within the energy system will exceed 315 million euro per year, starting from 2032. It is also noted that the project will enable a reduction in carbon dioxide emissions by 3.6 million tons per year by 2040.
The annual economic benefit of the project is expected to increase as the power lines are commissioned in stages. It is projected that this figure will reach 860 million euro following the commissioning of the first line in 2032, and 1.8 billion euro after the second line becomes operational in 2036. With the commissioning of the third line in 2040, the annual economic benefit is expected to exceed 3 billion euro.
Speaking at the forum, Azerbaijan’s Minister of Energy, Parviz Shahbazov, stressed the strategic importance of the project in terms of strengthening regional energy security, diversifying energy supplies, and facilitating the green transition.
The minister noted that the project holds a special place in Azerbaijan’s strategy to become a regional hub for the production, transmission, and export of green energy. The reaffirmed political support for the project during the recent visit of European Commission President Ursula von der Leyen to Baku was also highlighted. Strengthening the project’s investment prospects through efforts to include the project in the draft TYNDP 2026 (Ten-Year Network Development Plan) for the European electricity grid, as well as the attainment of "Project of Mutual Interest" (PMI) status, was noted.
The Green Energy Corridor, envisioned to span approximately 3,000 kilometers, is planned to be commissioned in phases starting from 2032, with a target transmission capacity of 4 GW. According to the feasibility study, the project could facilitate the development of at least 8 GW of renewable energy generation capacity in the region, enable the transmission of approximately 20 billion kilowatt-hours of electricity to Europe annually from 2040 onwards, and contribute to a reduction in carbon emissions by up to 3.6 million tons.
One of the primary technical challenges of the project involves the planned installation of subsea power cables at depths of up to 2,200 meters in the Black Sea. Consequently, the necessity of employing advanced technological solutions to carry out operations at such depths has been emphasized.
The consideration of a hybrid business model combining regulated and commercial components to ensure the project’s commercial sustainability was pointed out. This model is intended to be based on long-term power purchase agreements, the participation of private capital, and the development of cross-border electricity trade.
Shahbazov said that the involvement of international financial institutions and private investors, a robust business model, and long-term commercial agreements are essential prerequisites for reaching a final investment decision.
"Our goal is to transform the Green Energy Corridor into a regional infrastructure project characterized by a clear business model, a sustainable financial structure, and attractive terms for investors. Azerbaijan’s strategic location, extensive experience in international energy projects, and reliable relationships with partner countries provide a solid foundation for achieving this objective," noted Shahbazov.
At the conclusion of the forum, the development of a partnership roadmap and the next steps toward reaching a Final Investment Decision (FID) for the Green Energy Corridor project were agreed upon.
Project participants
The Caspian–Black Sea–Europe Green Energy Corridor is a cross-border electricity transmission project involving Azerbaijan, Georgia, Romania, and Hungary. The initiative was established under a strategic partnership agreement signed in Bucharest on December 17, 2022, with the participation of the European Commission.
The development of the project is being handled by Green Energy Corridor Power Company (GECO), a joint venture registered in Bucharest. The company is owned by the national electricity grid operators of the four participating countries: AzerEnerji (Azerbaijan), Georgian State Electrosystem (Georgia), Transelectrica (Romania), and MVM (Hungary). Each participant holds a 25% stake in the company.
The project has been included in the Ten-Year Network Development Plan (TYNDP) 2026 of the European Network of Transmission System Operators for Electricity (ENTSO-E), under project numbers 1248 and 1244.
The next phase of the project involves the preparation of an implementation plan, the clarification of financing options, and the continuation of preparatory work for the final investment decision in 2029.