BAKU, Azerbaijan, November 16. Black Sea Energy Submarine Cable can stabilize and reduce power generation costs in the Caucasus and Central Asia, Felix Chang, a Senior Fellow at the US Foreign Policy Research Institute’s Asia Program, told Trend.
According to the expert, governments in both regions would find it easier to industrialize and perhaps attract foreign direct investment if electricity generation prices were more reliable and lower.
"However, for any benefits to materialize in the foreseeable future, Brussels will have to devote greater attention and resources to the Black Sea Energy Submarine Cable and the Global Gateway Initiative," he stated.
Further speaking, Chang thinks that Brussels would be interested in involving Central Asian countries in operation of the Black Sea Energy Submarine Cable.
“However, I do not think Brussels is practically prepared to expand its Global Gateway Initiative, across the Caspian Sea, into Central Asia at this time,” he explained.
The expert stressed that EU has yet to commit meaningful funding for the initiative even for the Caucasus, and such funding is unlikely to be completed until after the technical study for the Black Sea Energy Submarine Cable is complete.
Meanwhile, Azerbaijan, Romania Georgia and Hungary signed an agreement to build a Black Sea sea-belt electric cable from the Black Sea coast of Georgia to the Black Sea coast of Romania on December 17, 2022.
The Black Sea Energy Submarine Cable project intends to provide Europe with secure energy sources. In order to assist the initiative, the European Commission, Azerbaijan, Romania, Hungary, and Georgia signed a Strategic Partnership Agreement in Bucharest.
The main priority of the project is to deliver renewable energy to Romania through underwater electrical cables passing through Azerbaijan and Georgia. It is anticipated that the project, with an initial budget of $2.3 billion, will be operational by 2029.
As part of this project, it is planned to lay a 1,195-kilometer power transmission line with a capacity of 1,000 MW between Georgia and Romania and install a digital connecting cable. To this end, with the support of the World Bank, it is planned to prepare a technical and economic justification for the project by the end of 2023.
Alongside Azerbaijan, two Caspian Sea countries, namely Turkmenistan and Kazakhstan, may also join this green corridor initiative to bring their vast green energy resources to Europe.
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