Int'l study finds project to supply green energy to EU via Black Sea to be feasible - Georgian govt
TBILISI. Aug 13 (Interfax) - An international study has found the Black Sea Submarine Cable Project to supply green energy to Europe to be promising and feasible, the Georgian Economy Ministry said.
"The Black Sea Submarine Cable Project is promising and feasible from both a technical and economic standpoint, according to the study, prepared by the Italian consulting company CESI and commissioned by the Georgian State Electrosystem with support from the World Bank and the Georgian Economy and Sustainable Development Ministry," the ministry said in a statement.
The study determined the optimal characteristics of the electric cable, calculated the cost of construction and conducted an economic analysis of the project. A preliminary route for the land and sea sections of the cable was also determined, and a project implementation plan and procurement strategy were drafted, as were a description of the work required to conduct geotechnical, geophysical, environmental and archaeological studies of the seabed, and terms of reference for a tender.
The feasibility study for the project began in 2022. Environmental and social impact assessments, as well as seabed studies, are planned for 2025-2026.
Romania's Financial Intelligence reported that shareholders of Transelectrica (TEL) approved its participation in the joint venture that will be created to lay the submarine cable.
"Transelectrica shareholders on August 12 voted in favor of the company's participation in the share capital of a new joint venture that will be created together with energy operators from Azerbaijan, Georgia and Hungary to deliver the project for a green energy corridor to Europe," the report says.
Romanian Energy Minister Sebastian Burduja said that for his country, the new interconnector will mean access to a new market, increased security for the national energy system, and "in the medium and long term, greener energy at a more affordable price for all Romanians."
The four countries signed an agreement in Bucharest on December 17, 2022, on strategic partnership, which includes the construction of an energy bridge from the Caucasus region to Europe. This involves laying the 1,195 km Black Sea Energy undersea cable with capacity of 1 GW. A decision was reached in June 2023 for Bulgaria to join the project.
Romanian power grid operator Transelectrica, Azerbaijan's Azerenerji, Georgian State Electrosystem (GSE) and Hungary's MVM signed a memorandum on May 27, 2024 to set up a joint operating company for the project. The name of the new company is not yet known, but it will be headquartered in Bucharest.
The cable will supply "green" electricity produced in Azerbaijan through Georgia and the Black Sea to Romania for subsequent transportation to Hungary and other European countries. Laying the cable will take three or four years. The European Commission plans to provide 2.3 billion euros for the project.