BAKU, Azerbaijan, October 24. The “Caspian–Black Sea–Europe Green Energy Corridor” project could create attractive opportunities for financial investors based on a model that ensures commercial viability and long-term economic results.
This was stated by Head of the European Bank for Reconstruction and Development (EBRD) Resident Office in Azerbaijan, Nataly Mouravidze, in a video posted on the Ministry of Energy’s social media accounts, in which she shared her views on the forum “Green Energy Corridor: From Feasibility Study to Implementation.”
She noted that the project’s commercial viability and long-term economic sustainability are key conditions for ensuring its financial attractiveness.
“This project can indeed be very attractive to financial investors. For this to happen, it is important that the project be commercially viable. It must deliver long-term and sustainable economic results. And most importantly, this project makes it possible to supply significant volumes of renewable ‘green’ energy to the region and integrate it into European markets,” Mouravidze stated.
The head of the EBRD’s office in Azerbaijan emphasized that cooperation between the private sector and international financial institutions is of particular importance for the successful implementation of the project.
“As for cooperation between the private sector and financial institutions, I believe that the project can only be implemented through the joint efforts of all parties. To achieve this, we must combine the financial resources of these institutions with the experience and expertise of the private sector. In this way, we will be able to bring all stakeholders together under a single project and ensure its joint financing,” she noted.
Meanwhile, 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. During the event, the investment attractiveness of the project, its business model, financing opportunities, and the establishment of new partnerships were discussed. In addition, special attention was paid to accelerating preparations for the final investment decision in 2029.
The forum was attended by representatives of government agencies from Azerbaijan and partner countries, the European Union, international financial institutions, investment funds, energy companies, electricity buyers, power transmission system operators, cable manufacturers, technology providers, engineering firms, and insurance companies.
Representatives of the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank, the Black Sea Trade and Development Bank, the Islamic Development Bank, Brookfield Asset Management, ACWA Power, Masdar, SOCAR Green, China Datang, State Grid Corporation of China, PowerChina, Siemens Energy, ABB, Hitachi Energy, TotalEnergies, Prysmian, NKT, Orient Cable, and other international companies were also represented at the event.
Speaking at the forum’s opening ceremony, Energy Minister Parviz Shahbazov emphasized the project’s strategic importance in terms of strengthening regional energy security, diversifying energy supplies, and the “green” transition.
In addition, it was noted that the feasibility study for the project—the foundation for which was laid in 2022 in Bucharest with a strategic partnership agreement between Azerbaijan, Georgia, Romania, and Hungary—was completed in July of this year and confirmed its technical feasibility and economic viability. The minister stated 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.
Attention was drawn to the fact that, during the recent visit of European Commission President Ursula von der Leyen to Baku, political support for the project was once again expressed. It was also noted that ongoing efforts to include the project in the Trans-European Network Development Plan (TYNDP) 2026 and to secure “Project of Mutual Interest” (PMI) status are strengthening its investment prospects.
Meanwhile, the “Green Energy Corridor,” which is approximately 3,000 kilometers long, is scheduled to be commissioned in phases starting in 2032, with a transmission capacity of 4 GW. According to the feasibility study, the project could create conditions for developing at least 8 GW of renewable energy generation capacity in the region, transmitting approximately 20 billion kilowatt-hours of electricity to Europe annually starting in 2040, and reducing carbon emissions by up to 3.6 million metric tons.
Given the technical complexity of the project, the importance of using cutting-edge technological solutions for laying submarine power cables at depths of up to 2,200 meters in the Black Sea was emphasized.
In addition, it was noted that, to ensure the project’s commercial viability, a hybrid business model combining regulated and commercial components is being considered. This model is expected to be based on long-term power purchase agreements, private capital investment, and the development of cross-border electricity trade.
The Minister of Energy stated that the participation of international financial institutions and private investors, a reliable business model, and long-term commercial agreements are key conditions for preparing to make a final investment decision.
“Our goal is to transform the ‘Green Energy Corridor’ into a regional infrastructure project with a clear business model, a sustainable financial structure, and attractive conditions for investors. Azerbaijan’s strategic location, extensive experience in international energy projects, and strong relationships with partner countries provide a solid foundation for achieving this goal. We believe that today’s forum will make an important contribution to establishing new partnerships, identifying concrete investment opportunities, and bringing the ‘Green Energy Corridor’ even closer to the final investment decision scheduled for 2029,” Shahbazov said.
At the conclusion of the forum, further steps were agreed upon as part of the preparations for developing a partnership roadmap and making a final investment decision (FID) on the “Green Energy Corridor” project.