The feasibility study results of the Green Energy Corridor were presented to international investors for the first time in Baku

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, was held in Baku. The results of the project's feasibility study were presented for the first time at the forum to international investors, financial institutions, and business partners. The project's investment attractiveness, business model, financing opportunities, and the establishment of new partnerships were discussed, with a focus on accelerating preparations for the final investment decision in 2029.

The event brought 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.

Six thematic sessions were held within the forum. In the first session, the main results of the project's feasibility study, including its technical and economic indicators, were presented by representatives of CESI. In the second session called Business Mmodel and Investment Opportunity, representatives from SOCAR Green, Xlinks, Zhero, and DNV Global discussed the proposed commercial model of the project, management and ownership structure options, the development roadmap, and opportunities for strategic investor participation. In the third session called Off-take and Market Opportunities, a discussion was held among representatives of MVM, Transelectrica, Masdar, ACWA Power, and PowerChina regarding the demand for green electricity in European markets, long-term power purchase agreements, cross-border electricity trade, and commercial partnerships. In the fourth session called Financing the Green Energy Corridor – Investment and Partnership Roundtable, which was moderated by the World Bank, representatives from the European Investment Bank, European Bank for Reconstruction and Development, Asian Development Bank, Black Sea Trade and Development Bank, and Brookfield Asset Management discussed project financing models, risk-sharing mechanisms, opportunities for combining public and private financial resources, and ways to increase the project's attractiveness to banks and investors. In the fifth session called Risk, Insurance and Bankability, representatives from Marsh McLennan, Straife, Gala Insurance, PASHA Insurance, and KPMG discussed project risk assessment and sharing, insurance solutions, creditor claims, and strengthening the project's financing readiness. In the sixth session called Technology and Supply Chain, representatives from Siemens Energy, Jan De Nul, Prysmian, NKT, ZTT, Hengtong, Hellenic Cables, and Orient Cable discussed high-voltage direct current (HVDC) technologies, the production and installation of subsea power cables, engineering and technological solutions, supply chain capabilities, and the practical readiness of the project. Within the session, Jan De Nul presented a cable technology, the first in the world, applicable at depths exceeding 4,000 meters. It was reported that this technology has proven its effectiveness by successfully passing tests. If there is an appropriate financing mechanism, the application of this technology in the Green Energy Corridor project may also be possible.

At the end of the forum, the next steps regarding the preparation of the Partnership Roadmap and the adoption of the Final Investment Decision (FID) on the Green Energy Corridor Project were agreed upon.