The development of energy corridors between the South Caucasus and Europe is entering a new stage. One of the key projects capable of changing the region’s energy map is the Black Sea Submarine Cable, which is expected to connect the energy systems of the South Caucasus and the European Union (EU). The project opens up new opportunities for exporting green electricity from Azerbaijan and Georgia to European markets, strengthening energy security and forming new transit routes.
In an interview with Report as part of Baku Energy Week, Georgia’s Deputy Minister of Economy and Sustainable Development Inga Pkhaladze spoke about prospects for implementing the Black Sea Cable, commercial expectations from electricity supplies to Europe, opportunities for cooperation between Azerbaijan and Georgia in renewable energy and green hydrogen, as well as attracting Azerbaijani investment to Georgia’s energy sector.
Here is the interview:
– Ms Pkhaladze, the Black Sea Cable project is described as historic for the region. At what stage are the feasibility study and cooperation with the Azerbaijani side?
– Two projects are currently being implemented in parallel. The first is the Black Sea Submarine Cable, a joint initiative of Georgia and Romania. The second is the Green Energy Corridor project, which brings together Azerbaijan, Georgia, Romania and Hungary. Both envisage laying energy infrastructure along the bottom of the Black Sea.
The capacity of the submarine cable between Georgia and Romania is 1,300 MW, while the transmission capacity of the Green Energy Corridor project reaches 4,000 MW.
In addition to the electricity cable, the possibility of building a pipeline to transport green hydrogen with a capacity of around 950,000 tons per year is also being considered. This pipeline would also connect the South Caucasus with the European market.
These projects open up new opportunities for the region to access European markets, strengthen supply reliability, improve energy security and diversify energy sources.
– What are Georgia’s commercial expectations from the transit of Azerbaijani electricity to the European Union? What benefits will the country gain as a transit hub?
– Georgia will become an important bridge between East and West, ensuring the transportation of electricity produced in the South Caucasus countries to European markets.
We are currently carrying out detailed calculations of potential revenues and economic benefits from the implementation of the project. Much will depend on its final model – whether it will be implemented with the participation of private capital, states or through a mixed financing mechanism. These issues are still under discussion.
At the same time, the feasibility study completed in 2026 confirmed the viability and feasibility of the project. The next important stage will be geophysical and geotechnical studies of the Black Sea seabed, which are expected to begin this year.
It is the results of these studies that will make it possible to finally assess the technical possibilities of laying both the energy cable and the hydrogen pipeline along the bottom of the Black Sea.
We see strong commercial interest in electricity supplies from the South Caucasus region to Europe. However, the significance of the project goes far beyond its commercial component. Its key value lies in strengthening energy interconnectivity between the countries of the region and Europe, diversifying electricity supply sources and increasing the resilience of the energy systems of all project participants.
– Azerbaijan is actively investing in the development of renewable energy, implementing large-scale solar and wind power plant projects jointly with international companies. Are Tbilisi and Baku discussing the possibility of launching joint projects in the production and export of green hydrogen?
– As I have already noted, there are a number of Azerbaijani companies in Georgia that are interested in building solar and wind power plants in our country. We have not yet discussed specific joint projects in this area, but such a possibility exists and looks quite realistic.
As for green hydrogen, this issue is also under discussion. We are aware of the strong interest of our Azerbaijani colleagues in developing this area. For our part, I would note that with the support of the Asian Development Bank, Georgia has already developed a hydrogen energy development strategy, as well as the relevant road map and action plan.
It cannot be ruled out that, in the future, we will move to the implementation of joint initiatives, especially if a decision is made to build cross-border infrastructure for hydrogen transportation.
– Is Georgia considering attracting Azerbaijani investment in the construction of small and medium-sized hydropower plants, with subsequent export of the generated electricity to foreign markets?
– Of course, such a scenario is quite possible. We welcome any investment from our strategic partner and friendly neighbor, Azerbaijan, in the development of Georgia’s energy sector, including hydropower projects.
Such cooperation would contribute not only to attracting investment and developing energy infrastructure, but also to strengthening regional energy integration and expanding the export potential of our countries.
