First international forum on the Green Energy Corridor opens in Baku
The first international forum on the Green Energy Corridor is taking place in Baku. It is dedicated to investment and partnership in the Khazar–Black Sea–Europe project, which the Ministry of Energy of Azerbaijan organised.
Gurban Gurbanzadeh3 min read
The first international forum dedicated to the Khazar–Black Sea–Europe Green Energy Corridor project is taking place in Baku. Its theme is "Green Energy Corridor: from technical and economic justification to implementation." The forum is dedicated to investment and partnership opportunities of the project.
According to the Ministry of Energy, speaking to the APA-Economics agency, the goal of the forum is to speed up the project's transition from the technical and economic justification stage to investments and practical implementation. The forum is planned to discuss with potential partners the business model, the financing structure and commercial prospects. The forum should also help prepare for a final investment decision scheduled for 2029.
Representatives of government agencies of Azerbaijan and partner countries, the European Union, international financial institutions, investment funds, energy companies, transmission system operators, cable manufacturers, technology suppliers, engineering and insurance companies are taking part in the event. Among the participants are the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), the Black Sea Trade and Development Bank, the Islamic Development Bank, as well as a number of international companies, including SOCAR Green, ACWA Power, Siemens Energy, ABB and TotalEnergies.
Key project parameters
Minister of Energy Parviz Shahbazov, speaking at the opening of the forum, stressed the strategic importance of the project for regional energy security, diversification of supply routes and the green transition. According to him, the feasibility study of the project, completed in July of this year, confirmed that the project can be implemented technically and is attractive from an economic point of view. The project was launched in 2022 in Bucharest, where Azerbaijan, Georgia, Romania and Hungary signed a memorandum on strategic partnership.
According to the technical and economic justification, the length of the Green Energy Corridor will be about 3,000 kilometres. Phased commissioning is planned from 2032, with a transmission capacity of 4 GW. According to estimates, the project will allow the region to develop at least 8 GW of renewable energy, and from 2040 to transmit to Europe about 20 billion kWh of electricity per year and reduce carbon dioxide emissions by up to 3.6 million tonnes.
The minister also said that a hybrid business model combining regulated and commercial components is under consideration. It relies on long-term electricity purchase and sale contracts, private capital participation and the development of cross-border electricity trade.
"Our goal is to turn the Green Energy Corridor into a regional infrastructure project with a clear business model, a sustainable financial structure and attractive conditions for investors," said Parviz Shahbazov.
According to the minister, 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.
Source: apa.az
