On March 10, 2025, an international summit was held in Budapest with the participation of representatives from Azerbaijan, Hungary, Georgia, Bulgaria, and Romania. The summit focused on discussing the implementation of the ambitious infrastructure project—the “Green Energy Corridor.” This project involves the construction of an underwater electricity cable connecting the Caspian and Black Seas with Southeastern Europe, significantly strengthening regional energy security and ensuring electricity supplies from renewable sources.
The summit was attended by high-ranking officials from the participating countries, including Azerbaijan’s Minister of Energy Parviz Shahbazov, Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó, Georgia’s First Deputy Prime Minister and Minister of Economy and Sustainable Development Levan Davitashvili, Romania’s Minister of Energy Sebastian-Ioan Burduja, and Bulgaria’s Minister of Energy Zhecho Stankov. Representatives of the European Commission and the leadership of GECO Power Company, a joint venture responsible for the project’s implementation, also participated in the discussions.
Political and Financial Support
Following the meeting, Azerbaijan, Georgia, Romania, and Hungary submitted a joint request to European Commissioner for Energy Dan Jørgensen, asking for the inclusion of the “Green Energy Corridor” in the European Union’s list of “Projects of Common Interest” (PCI). Inclusion in this list would accelerate the project’s implementation and facilitate access to financial and institutional resources from the EU. Additionally, an agreement was reached to include the project in the EU’s Ten-Year Network Development Plan (TYNDP), and the possibility of Bulgaria’s participation in the project was discussed.
The project envisions the construction of a 1,200-kilometer-long submarine cable that will pass through Azerbaijan, Georgia, and then under the Black Sea to Bulgaria and Romania. The estimated cost of implementation is approximately €10 billion. According to technical calculations, the initial electricity transmission capacity will be up to 4 GW, with the potential to increase to 6 GW in the future.
A crucial aspect of the project is its integration into the pan-European energy network. As part of the preparatory phase, Romania’s electricity transmission system operator, Transelectrica, will submit an application to include the project in the TYNDP between April 1 and May 9, 2025. The process will be jointly supervised by the Green Energy Corridor Energy Company (GECO).
Development of Renewable Energy in Azerbaijan
Azerbaijan is actively expanding its renewable energy sector. In 2023, the country commissioned the “Garadagh” solar power plant with a capacity of 230 MW. At the COP29 forum in Baku, President of Azerbaijan Ilham Aliyev announced plans to achieve 6 GW of renewable energy capacity by 2030, significantly surpassing the current generation level of 1.7 GW. A substantial portion of the new electricity will be exported, including through the “Green Energy Corridor.”
According to estimates by the World Bank and the International Finance Corporation, the offshore wind energy potential in the Caspian Sea could reach up to 7 GW by 2040. In 2026, the first large-scale wind farm, with a capacity of 240 MW, is scheduled to be launched in Khizi and on the Absheron Peninsula. Additionally, three new solar and wind power plants with a combined capacity of 1 GW are under development.
The expansion of renewable energy in Azerbaijan is strongly supported by international investments. The UAE-based state company Masdar financed and operates the “Garadagh” solar power plant, while Saudi Arabia’s Acwa Power is involved in the Khizi-Absheron project. Collectively, these companies have already invested more than $6 billion in Azerbaijan’s energy sector, making them key partners for the country.
Challenges and Risks
Despite its significant prospects, the implementation of the “Green Energy Corridor” faces several challenges, including technical, financial, and geopolitical factors. One of the key obstacles is the installation of the submarine cable at great depths, which requires the use of advanced technologies. Currently, only two companies worldwide—Prysmian (Italy) and Nexans (France)—possess the necessary expertise and equipment to carry out such work.
The project also faces potential security risks. The Black Sea remains threatened by drifting mines left over from the onset of the conflict in Ukraine. Moreover, analysts do not rule out the possibility of deliberate sabotage, similar to the damage sustained by the submarine cable between Finland and Estonia in early 2025. In this context, infrastructure security is becoming a crucial factor in the successful implementation of the project.
Conclusion
The realization of the “Green Energy Corridor” will be a major step in the development of transnational energy infrastructure, ensuring reliable supplies of clean electricity to Europe. However, the project requires substantial investments, cutting-edge technology, and effective international cooperation. Given the current geopolitical landscape, protecting energy infrastructure and ensuring its resilience are becoming key factors in the successful completion of this ambitious initiative.
