Total investment in the Caspian-Black Sea-Europe Green Energy Corridor, designed to deliver renewable electricity generated in Azerbaijan to European markets via Georgia and the Black Sea, is estimated at €22 billion.
According to the project’s feasibility study, the document has been completed and approved by the governments of Azerbaijan, Georgia, Romania and Hungary. The project is now moving into the design phase.
Of the total investment, €14.3 billion will be allocated to developing the electricity transmission system, while €7.8 billion will go towards building renewable energy generation capacity.
The project envisages a transmission corridor with a total capacity of 3.9 gigawatts (GW), comprising three power lines, each with a capacity of 1.3 GW. The study estimates the project’s internal rate of return (IRR) at 11.7%.
According to projections, the corridor will enable the export of 8 terawatt-hours (TWh) of renewable electricity to the European Union annually by 2032. This volume is expected to rise to 20 TWh per year by 2040.
Congestion revenues — generated by price differences between electricity market zones or regions connected through transmission infrastructure — are forecast to exceed €315 million annually from 2032. The project is also expected to reduce carbon dioxide (CO₂) emissions by 3.6 million tonnes per year by 2040.
The corridor’s annual economic benefits are projected to increase as additional transmission lines enter service. The first line, scheduled for 2032, is expected to generate €860 million in annual economic benefits. The launch of the second line in 2036 is projected to raise the figure to €1.8 billion per year, while the third line, planned for 2040, is expected to push annual benefits above €3 billion.
The Caspian-Black Sea-Europe Green Energy Corridor is a cross-border electricity transmission project involving Azerbaijan, Georgia, Romania and Hungary. It was established under a Strategic Partnership Agreement signed in Bucharest on December 17, 2022, in the presence of the European Commission.
The project is being developed by Green Energy Corridor Power Company (GECO), a joint venture registered in Bucharest and owned by the national electricity transmission system operators of the four participating countries.
Azerbaijan’s AzerEnerji, Georgia’s Georgian State Electrosystem, Romania’s Transelectrica and Hungary’s MVM each hold a 25% stake in the company.
The project has also been included in the European Network of Transmission System Operators for Electricity (ENTSO-E)’s 2026 Ten-Year Network Development Plan (TYNDP) under project numbers 1248 and 1244.