Baku hosts First International Forum dedicated to the Green Energy Corridor
The Green Energy Corridor: From Feasibility Study to Implementation Forum, dedicated to investment and partnership opportunities for the Caspian-Black Sea-Europe Green Energy Corridor project, is being held in Baku. The Forum aims to accelerate the project's transition from the feasibility study stage to investment and practical implementation, discuss its business model, financing structure and commercial prospects with potential partners, and contribute to preparations for the Final Investment Decision (FID) scheduled for 2029.
The event brings together representatives of government institutions from Azerbaijan and partner countries, the European Union, international financial institutions, investment funds, energy companies, offtakers, transmission system operators, cable manufacturers, technology suppliers, engineering firms and insurance companies. Representatives from 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 participated at the forum.
Speaking at the opening of the Forum, Minister of Energy Parviz Shahbazov emphasized the strategic importance of the Caspian-Black Sea-Europe Green Energy Corridor for regional energy security, diversification of energy supplies and the green energy transition. It was noted that the project, initiated under the Strategic Partnership Agreement signed by Azerbaijan, Georgia, Romania and Hungary in Bucharest in 2022, had been confirmed as technically feasible and economically attractive by the feasibility study completed in July this year. The Minister highlighted the project's special role in the policy pursued by President of Azerbaijan Ilham Aliyev to transform the country into a regional hub for green energy generation, transmission and export. He also noted that political support for the project had been reaffirmed during European Commission President Ursula von der Leyen's most recent visit to Baku. It was stated that the project's inclusion in the draft Ten-Year Network Development Plan (TYNDP) 2026 and ongoing efforts on Project of Mutual Interest (PMI) status were strengthening its investment prospects.
It was noted that the Green Energy Corridor, approximately 3,000 kilometres long, is expected to be commissioned in phases starting in 2032, with its transmission capacity reaching 4 GW. According to the feasibility study, the project will facilitate the development of at least 8 GW of renewable energy capacity in the region, enable the transmission of approximately 20 billion kilowatt-hours of electricity annually to Europe from 2040, and reduce carbon emissions by up to 3.6 million tonnes. The importance of deploying advanced technological solutions for laying the submarine cable at depths of up to 2200 metres in the Black Sea was also emphasized. To ensure the project's commercial viability, a hybrid business model combining regulated and commercial components is under consideration. The model is based on long-term Power Purchase Agreements (PPAs), private equity participation and the development of cross-border electricity trade. The Minister stressed that the involvement of international financial institutions and private investors, a reliable business model and long-term commercial agreements are essential for reaching the Final Investment Decision. "Our objective 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 position, extensive experience in implementing international energy projects, and strong relations built on mutual trust with partner countries provide a solid foundation for achieving this objective. We believe that today’s Forum will make a significant contribution to forging new partnerships, identifying concrete investment opportunities, and bringing the Green Energy Corridor closer to the final investment decision envisaged for 2029,” Minister Parviz Shahbazov stated.
The Forum continues with six thematic sessions.
