Azerbaijan, Georgia, Romania and Hungary begin process of creating joint venture for Black Sea Energy project

BAKU. May 29 (Interfax) - Energy operators in Azerbaijan, Romania, Georgia and Hungary have signed a memorandum to create a joint venture as part of the implementation of the Black Sea Energy Caspian-Black Sea-Europe Green Energy Corridor project.

The document was signed this week by Romanian power grid operator Transelectrica, Azerenerji, the Georgian State Electric System and Hungary's MVM, Romanian media reported.

The parties will take steps to create a joint venture to implement this project. The joint venture will operate in Romania, the memorandum says.

As previously reported with reference to the Ministry of Energy of Azerbaijan, the energy ministers of the four countries met on May 15 in Tbilisi and noted the need to accelerate processes related to the creation of the joint venture. As a result, it was decided to create a joint venture in Bucharest.

The initial feasibility study report from the Caspian-Black Sea-Europe Green Energy Corridor project prepared by CESI was presented during the discussions in Tbilisi, as well as a presentation of the fiber optic component. The participants agreed that the first task of the feasibility study was complete.

In addition, the meeting welcomed Bulgaria's intention to participate in the joint venture, and discussed the interest and steps taken by Kazakhstan and Uzbekistan in the context of strengthening regional energy security, the transition to green energy and building connections between the Central Asian, Caspian and Black Sea regions.

An agreement on a strategic partnership for the construction of a Black Sea Energy undersea electric cable with a capacity of 1 GW and a length of 1.195 thousand km was signed in Bucharest on December 17, 2022. It was announced that Bulgaria would join the project in June 2023. The cable will supply green electricity produced in Azerbaijan through Georgia and the Black Sea to Romania for onward transport to Hungary and the rest of Europe.

Construction of the facility will take 3-4 years. The European Commission plans to provide 2.3 billion euros for the project.