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Ulviyya Poladova

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A formal application has been submitted to the European Commission seeking Project of Mutual Interest (PMI) status for the Green Energy Corridor (GEC), an initiative aimed at delivering renewable electricity generated in the Caspian region to European markets.

The Green Energy Corridor Power Company (GECO) announced that the application was filed under the European Union's Trans-European Networks for Energy (TEN-E) Regulation.

The project envisages establishing a new electricity transmission route linking Azerbaijan, Georgia, Romania and Hungary through a high-voltage direct current (HVDC) submarine cable laid beneath the Black Sea, alongside the necessary onshore infrastructure.

According to GECO, obtaining PMI status would formally recognise the project's strategic importance for the European Union and its partner countries. It would also provide access to broader EU support, help streamline permitting procedures and strengthen investor confidence during the project's development.

The application was prepared through close cooperation among Azerbaijan's AzerEnergy, Georgian State Electrosystem, Romania's Transelectrica and Hungary's MVM.

The company expressed its gratitude to the governments of Azerbaijan, Georgia, Romania and Hungary, the European Commission and its technical partners for their support.

The application is now awaiting the next stage of the assessment process. The project is intended to strengthen energy security in the region and Europe, diversify energy sources and contribute to reducing carbon emissions.

Earlier, the results of the feasibility study for the Caspian-Black Sea-Europe Green Energy Corridor were presented to international investors, financial institutions and business partners at a forum held in Baku.

Discussions focused on the project's investment appeal, business model, financing opportunities, the establishment of new partnerships and preparations for reaching a final investment decision (FID).

According to the feasibility study, investment in electricity transmission infrastructure is estimated at 14.3 billion euros. The study was completed in July 2026 and approved by the governments of Azerbaijan, Georgia, Romania and Hungary. The project is currently in the development phase.

The study estimates that the corridor will have a total transmission capacity of 3.9 gigawatts (GW), with three power lines planned, each with a capacity of 1.3 GW. The project's internal rate of return (IRR) is estimated at 11.7%.

It was noted that that the corridor will be capable of supplying the European Union with 8 terawatt-hours (TWh) of renewable electricity annually from 2032. By 2040, annual transmission volumes are expected to reach 20 TWh.

The feasibility study also forecasts that revenues generated through the management of transmission constraints in the energy system will exceed 315 million euros annually from 2032. In addition, the project is expected to reduce carbon dioxide emissions by 3.6 million tonnes per year by 2040.

The project's annual economic benefits are expected to increase as the power lines are gradually commissioned. Following the launch of the first line in 2032, annual benefits are projected to reach 860 million euros. This figure is expected to rise to 1.8 billion euros after the second line becomes operational in 2036.

With the commissioning of the third line in 2040, the corridor's annual economic benefits are projected to exceed 3 billion euros.