The forum titled "Green Energy Corridor: From Feasibility Study to Implementation," dedicated to investment and partnership opportunities of the "Caspian-Black Sea-Europe Green Energy Corridor" project, is being held in Baku, the Ministry of Energy told APA-Economics.
The forum aims to accelerate the project's transition from the feasibility study stage to the investment and practical implementation stage, discuss its business model, financing structure, and commercial prospects with potential partners, and contribute to preparations for the final investment decision scheduled for 2029.
The event is attended by representatives of government institutions of Azerbaijan and partner countries, the European Union, international financial institutions, investment funds, energy companies, electricity buyers, transmission system operators, cable manufacturers, technology suppliers, engineering companies, and insurance companies. The World Bank, European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), Black Sea Trade and Development Bank, Islamic Development Bank, Brookfield Asset Management, ACWA Power, Masdar, SOCAR Green, China Datang, State Grid Corporation of China, PowerChina, Siemens Energy, ABB, Hitachi Energy, Xlinks, Zhero, TotalEnergies, Jan De Nul, Prysmian, NKT, Hellenic Cables, ZTT, Hengtong, Orient Cable, Mitsui, CESI, and other international companies are represented at the forum.
Speaking at the opening of the forum, Energy Minister Parviz Shahbazov emphasized the strategic importance of the "Caspian-Black Sea-Europe Green Energy Corridor" in terms of regional energy security, supply diversification, and the green transition. It was stated that the study of the project, which was launched under the Strategic Partnership Agreement signed between Azerbaijan, Georgia, Romania, and Hungary in Bucharest in 2022 and completed in July of this year, confirmed its technical feasibility and economic attractiveness.
The minister noted that the project holds a special place in the policy of President of Azerbaijan Ilham Aliyev to transform the country into a regional hub for green energy production, transmission, and export. It was highlighted that political support for the project was once again expressed during European Commission President Ursula von der Leyen's latest visit to Baku. It was stated that the project's inclusion in the draft TYNDP 2026 and efforts to obtain PMI (Project of Mutual Interest) status strengthen its investment prospects.
It was noted that the approximately 3,000-kilometer-long Green Energy Corridor is planned to be commissioned in stages starting from 2032, with its transmission capacity reaching 4 GW.
According to the feasibility study, the project will enable the development of at least 8 GW of renewable energy capacity in the region, the transmission of approximately 20 billion kilowatt-hours of electricity annually to Europe starting from 2040, and a reduction in carbon emissions of up to 3.6 million tons.
The importance of applying advanced technological solutions for laying a submarine cable at depths of up to 2,200 meters in the Black Sea was emphasized.
It was stated that a hybrid business model combining regulated and commercial components is being considered to ensure the project's commercial sustainability. The model is based on long-term electricity purchase and sale agreements, private capital participation, and the development of cross-border electricity trade.
The minister 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 the final investment decision.
"Our goal is to transform the Green Energy Corridor into a regional infrastructure project with a clear business model, a sustainable financing structure, and attractive conditions for investors. Azerbaijan's strategic position, extensive experience in international energy projects, and reliable relations with partner countries provide a solid foundation for achieving this goal. We believe that today's forum will make a significant contribution to establishing new partnerships, creating concrete investment opportunities, and bringing the Green Energy Corridor closer to the final investment decision scheduled for 2029," Energy Minister Parviz Shahbazov said.
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