Budapest: The 10th Ministerial Meeting/Steering Committee held in Budapest highlights an important regional transformation in energy policy. Discussions within the framework of the ‘Agreement on Strategic Partnership in the field of development and transfer of green energy between Azerbaijan, Georgia, Hungary, and Romania’ are of great significance for the large-scale implementation of green energy exports from the Caspian Sea to Europe.
According to Azeri-Press News Agency, on March 10, in Budapest, the capital of Hungary, at the 10th Ministerial Meeting/Steering Committee for the implementation of the Agreement on Strategic Partnership in the field of development and transfer of green energy between Azerbaijan, Georgia, Hungary, and Romania, Azerbaijan was represented by Minister of Energy Parviz Shahbazov, Hungary by Minister of Foreign Affairs and Trade P©ter Szijj¡rt³, Georgia by First Vice Prime Minister, Minister of Economy and Sustainable Development Levan Davitashvili, Romania by Minister of Energy Sebastian-Ioan Burduja, and Bulgaria by Minister of Energy Rumen Radev. The meeting was also attended by representatives of the European Commission, the Joint Venture (GECO Power Company), and ‘CESI’ company.
At the meeting, the development of Azerbaijan’s renewable energy potential, progress and prospects on the Caspian-Black Sea-European Green Energy Corridor project were reviewed. The issues related to the activities of the Green Energy Corridor Power Company (GECO), Bulgaria’s involvement in the project, the current state of the feasibility study implemented by CESI, and cooperation with the European Union (EU) on project financing were discussed.
After the discussions, the ministers of the four countries signed a Protocol on the results of the meeting and a Joint Letter from Azerbaijan, Georgia, Romania, and Hungary to the Commissioner of the European Union (EU) for Energy, Dan Jorgensen. The purpose of the letter is to provide appropriate support for granting the Caspian-Black Sea Green Energy Corridor project with Project of Mutual Interest (PMI) status.
During the meeting, a corresponding document was signed with the aim of transferring the main powers and obligations under the contract between the Ministry of Energy and CESI to GECO.
The Agreement on Strategic Partnership between the Governments of the Republic of Azerbaijan, Georgia, Romania, and Hungary in the field of Development and Transmission of Green Energy was signed on 17 December 2022 in Bucharest.
This strategic energy project not only aims to develop Azerbaijan’s renewable energy potential but also makes a significant contribution to Europe’s energy security and green energy transition. The energy corridor established between Azerbaijan, Georgia, Hungary, and Romania aligns with the European Union’s (EU) energy strategy, helping to diversify Europe’s energy supply and reduce dependence on Russia.
In addition, this project creates conditions for expanding regional cooperation by including Bulgaria. Bulgaria’s participation in the energy project will strengthen its integration into the EU’s energy network and further solidify the green energy supply chain.
Azerbaijan’s identification of wind energy zones in the Caspian Sea and its cooperation with international companies in this field demonstrate the country’s intention to become a strong player in the renewable energy market. As noted by Minister of Energy Parviz Shahbazov, the development of green hydrogen is one of the main directions of this project. This will represent a new stage in Azerbaijan’s energy strategy. The production and export of green hydrogen to Europe could gradually help reduce the country’s dependence on the oil and gas sector.
Economist-expert Eldaniz Amirov, in his statement to APA, expressed hope that Azerbaijan would successfully implement the Caspian-Black Sea-European Green Energy Corridor project. This initiative, as a key project at the initial stage of Azerbaijan’s alternative energy strategy, lays the foundation for a new era in the country’s energy sector.
Hungary, in cooperation with other partner countries, is actively pursuing diplomatic efforts to integrate the project into the European Union’s energy infrastructure plans. Hungary views strengthening collaboration with the EU as essential for the project’s implementation. At the same time, by promoting regional cooperation in the development and transmission of green energy, the country believes that this initiative will enhance stability in Europe’s energy market.
Demko Attila, Head of the Strategic Foresight Programme at John Lukacs Institute of Hungary, stated in a statement to APA that the “Caspian-Black Sea Green Energy Corridor” project holds strategic significance for Europe’s energy security and green transition.
The expert also highlighted Azerbaijan’s crucial role in Hungary’s energy security, noting that Azerbaijani energy already contributes to Hungary’s energy diversification. The new initiative will further strengthen cooperation with Azerbaijan.
For Georgia, the Caspian-Black Sea Green Energy Corridor project is of great importance in terms of strengthening the country’s strategic position as a regional energy transit and logistics hub. Georgian expert Levan Mamaladze stated that the Green Energy Corridor project will make significant contributions to Europe’s energy diversification, regional stability, and the economic well-being of the participating countries.
The Budapest meeting showed that Azerbaijan and partner countries have made significant progress in the transition to green energy and energy security. The implementation of the project will strengthen Azerbaijan’s role in the international energy market, increase its access to alternative energy sources for Europe, and create new opportunities for energy transit in the Caspian-Black Sea region.