BAKU, Azerbaijan, October 24. The Green Energy
Corridor project, designed to connect Azerbaijan’s renewable energy
resources with European markets via Georgia and the Black Sea,
requires €14.3 billion in transmission investment, according to the
project’s feasibility study.


The feasibility study has been completed and endorsed by the
governments of Azerbaijan, Georgia, Romania and Hungary, with the
project now entering its development phase.


The planned multi-terminal high-voltage direct current (HVDC)
transmission corridor will comprise three links with a combined
capacity of 3.9 gigawatts (GW), or 1.3 GW each. The project’s
economic internal rate of return (IRR) is estimated at 11.7%,
according to the study.


The corridor is expected to enable the export of 8 TWh of
renewable electricity annually to the European Union (EU) by 2032,
rising to 20 TWh per year by 2040.


Congestion revenues are projected to exceed €315 million
annually from 2032.


The project is also expected to reduce carbon dioxide (CO₂)
emissions by 3.6 million tonnes per year by 2040.







Annual economic benefits are projected to increase as additional
links become operational. The first link, scheduled for 2032, is
expected to generate annual benefits of €860 million. Following the
planned commissioning of the second link in 2036, annual benefits
are projected to reach €1.8 billion. With the third link scheduled
for 2040, annual benefits are expected to exceed €3 billion.


The Green Energy Corridor is a cross-border electricity
transmission initiative involving Azerbaijan, Georgia, Romania and
Hungary. It was established under a Strategic Partnership Agreement
signed in Bucharest on December 17, 2022, with the participation of
the European Commission.


The project is being developed by Green Energy Corridor Power
Company (GECO), a Bucharest-based joint venture owned by the four
countries’ national electricity companies.


Its shareholders each hold an equal 25% stake: Azerbaijan’s
AzerEnerji, Georgia’s Georgian State Electrosystem, Romania’s
Transelectrica and Hungary’s MVM.


The project is included in the European Network of Transmission
System Operators for Electricity (ENTSO-E) Ten-Year Network
Development Plan (TYNDP) 2026 under project numbers 1248 and
1244.