MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Registration process for a joint venture, Green Energy Corridor Power Company-GECO POWER COMPANY, was successfully completed in Bucharest, Romania, with the participation of transmission system operators from Georgia, Azerbaijan, Romania, and Hungary.

At this stage, the joint venture will be engaged in research and design activities for the green energy corridor. Accordingly, its purpose is to implement the green energy corridor project, which includes the construction of a high-voltage underwater transmission cable across the Black Sea.

To implement the objectives defined by the Strategic Partnership Agreement and the Memorandum on Cooperation in the Field of Green Energy, a Memorandum of Understanding on the establishment of a joint venture was signed on July 25, 2023, between the governments of Azerbaijan, Georgia, Romania, and Hungary, which outlined the general principles for the creation of the joint venture.

The Black Sea Submarine Cable Project is the largest infrastructure project that will directly connect the power systems of Georgia and Romania, and in a broader context, the power systems of the South Caucasus and Southeast Europe. The length of the underwater power cable will be more than 1155 km (1115 km underwater and 40 km on land), the voltage will be 525 kV, and the capacity will be 1300 MW. The project also includes the construction of a fiber-optic telecommunications cable, which will be installed in the corridor selected for the underwater power cable. The estimated completion date for the construction of the underwater power cable is 2030. The project's feasibility study, conducted by the Italian consulting company CESI, determined that the project is technically and economically viable.

The Black Sea Submarine Cable Project contributes to strengthening national and regional energy security, increasing Black Sea connectivity, diversifying energy sources, capitalizing on renewable energy generation potential, and increasing the share of renewable energy in the energy mix. It also combines regional energy capabilities to ensure electricity generation at competitive prices from renewable sources.

It should be noted that the project is included in ENTSO-E 10-year network development plan for 2024-2034, and in November 2024, the project was submitted to the European Commission for Project of Common Interest status, as it is a cross-border energy infrastructure project between the EU and non-EU countries that contributes to the achievement of energy and climate policy objectives.

The founding companies of Green Energy Corridor Power Company - GECO POWER COMPANY are: from the Republic of Azerbaijan - "Azerenerji" OJSC, from Georgia - "Georgian State Electrosystem" JSC, from Hungary - MVM Energy Private Limited Company, and from Romania - National Power Grid Company Transelectrica S.A. The joint venture was founded with equal shareholding participation, and accordingly, all involved parties will participate equally in the management of the company.