BAKU, Azerbaijan, May 22. The World Bank’s Board of Executive Directors today approved a $35 million loan for the first phase of the Enhancing Energy Security through Power Interconnection and Renewable Energy (ESPIRE) Program for Georgia, Trend reports via the World Bank.
The ESPIRE Program consists of three phases with a potential financing envelope of up to $500 million that seeks to improve Georgia’s institutional capacity for the development of submarine cable projects, strengthen Georgia’s domestic power transmission system, and establish a direct electricity interconnection between the South Caucasus and Southeast Europe. Additionally, the parallel digital interconnection would reduce internet connection costs, improve bandwidth, and generally enhance international digital connectivity across the Black Sea.
The ESPIRE Program is designed to support the next steps in the preparation of a potential Black Sea Submarine Cable (BSSC) Project, which aims to establish parallel electricity and fiber-optic submarine cable interconnections across the Black Sea, with landing points in Georgia and Romania.
On December 17, 2022, Azerbaijan, Georgia, Romania, and Hungary signed a strategic partnership agreement that provides for the construction of an energy bridge from the Caucasus region to Europe.
As per the agreement, a 1,000 MW Black Sea Energy submarine electric cable spanning 1,195 kilometers is set to be constructed. The cable is intended to transmit 'green' electricity generated in Azerbaijan, routed through Georgia and the Black Sea to Romania, and further distributed to Hungary and the rest of Europe. This infrastructure will facilitate the supply of up to four gigawatts of green energy.
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