The energy system operators of Romania, Azerbaijan, Georgia, and Hungary will form a joint-venture company to establish a submarine cable in the Black Sea

Energy System Operators from Romania, Azerbaijan, Georgia, and Hungary are forging an unprecedented alliance, and now Bulgaria has expressed keen interest in joining their ranks. Together, they are embarking on an ambitious project to establish a joint-venture company for the construction of a groundbreaking submarine cable in the Black Sea. This remarkable cable, stretching nearly 1,200 kilometers with a transfer capacity of 1,000 MW, aims to interconnect the national energy networks of the South Caucasus with continental Europe. The ultimate vision is to facilitate the seamless transmission of renewable energy generated by Azerbaijanis and Georgians to the EU, the Balkans, and the Republic of Moldova.

The project was formally initiated in Bucharest last December during a meeting of heads of state and government, marked by the initialing of the Agreement between the Governments of the Republic of Azerbaijan, Georgia, Romania, and Hungary. The agreement centers around a Strategic Partnership in Green Energy Development and Transport, underscoring the joint commitment to combat global warming, promote renewable energy, and enhance energy efficiency.

Adding to the momentum, Bulgaria has expressed its strong desire to participate in this momentous initiative at a later stage. The memorandum of understanding, which serves as the foundation for the joint-venture company, was recently signed in Bucharest by the relevant ministers from the four participating governments. The esteemed transmission and system operators involved in this game-changing endeavor include Transelectrica from Romania, AzerEnergi from Azerbaijan, Georgian State Electrosystem (GES) from Georgia, and MAVIR from Hungary.

As negotiations continue to advance, the consortium aims to complete the feasibility study by the end of this year. Azerbaijan has set an even more ambitious deadline of September 2023. While the total investment required for constructing the submarine cable is estimated to exceed 2 billion euros, its commissioning could significantly impact the energy landscape by the end of 2029.

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