OMM Newsroom
Azerbaijan is seeking international investors for a 3,000-kilometer green energy corridor to Europe. Representatives of banks, investors and energy companies discussed financing for the project in Baku on Thursday, AnewZ reported.
The Caspian-Black Sea-Europe Green Energy Corridor is designed to connect Azerbaijan to European electricity markets via Georgia, Romania and Hungary. The project aims to create a new export route as Azerbaijan expands its renewable energy sector.
The roughly 3,000-kilometer transmission infrastructure will include a cable laid along the bottom of the Black Sea. According to Azerbaijan’s Ministry of Energy, the results of the project’s feasibility study were presented for the first time to international investors, financial institutions and business partners at a forum on October 22.
The ministry said the feasibility study, completed in July 2026, found the project technically feasible and economically attractive. Attention is now focused on securing the financing needed to implement it.
Representatives of the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and the Asian Development Bank attended the forum, along with private investors and international energy companies. Discussions covered financing options, risk-sharing and ways to combine public and private investment.
A separate panel discussed possible ownership structures, private-sector participation and the role of long-term electricity sales in making the project commercially viable. The proposed business model includes long-term power purchase agreements under which buyers would commit to purchasing electricity on agreed terms.
No new financing commitments were announced at the forum. Energy Minister Parviz Shahbazov said the aim was to turn the corridor into a regional infrastructure project with a clear business model, sustainable financing structure and attractive terms for investors.
The corridor is expected to have a transmission capacity of 4 gigawatts and begin operating in stages from 2032. According to the feasibility study cited by the ministry, the project could help develop at least 8 gigawatts of renewable energy capacity in the region.
From 2040, the project could enable annual electricity exports to Europe of about 20 billion kilowatt-hours and cut carbon emissions by up to 3.6 million tonnes. For Azerbaijan, the corridor offers an opportunity to diversify beyond oil and natural gas exports and gain a foothold in Europe’s renewable electricity market.
The initiative is based on a strategic partnership agreement signed by Azerbaijan, Georgia, Romania and Hungary in 2022.
One of the project’s main engineering challenges is laying the cable along the bottom of the Black Sea. Depths along some parts of the proposed route are reported to reach 2,200 meters. At the forum, Belgian marine engineering company “Jan De Nul” presented cable technology designed for use at depths of more than 4,000 meters.
Azerbaijan’s Ministry of Energy described the technology as the first solution of its kind in the world. While the presentation offered a possible way to address the challenges of installing cables in deep water, a supplier has not yet been selected.
The next key milestone is a final investment decision, targeted for 2029. The decision will depend on securing financing, attracting investment partners and concluding long-term commercial agreements.
If completed, the project could strengthen Azerbaijan’s position as a regional energy hub and provide a new route for delivering renewable electricity to European markets.
