Romanian minister: Eastern Europe needs additional energy sources due to high prices

The Green Energy Corridor launched in Bucharest two years ago, entered a new phase on Tuesday with the establishment of a joint venture company to carry out the feasibility study and oversee the implementation of the gas supply initiative from the Caspian region to Eastern European countries.

CNTEE Transelectrica, Georgian State Electrosystem, AzerEnerji and MVM Electrical Works signed the founding documents for the Green Energy Corridor Power Company, which will be based in Romania and will be responsible for implementing the Green Energy Corridor project. The signing took place during the 8th Ministerial Meeting of the Green Energy Corridor Project, which involves Azerbaijan, Georgia, Romania and Hungary.

During the meeting, the energy ministers of the four countries also signed a protocol amending the original agreement. The protocol clarifies that EU legislation and Romania’s and Hungary’s obligations as EU member states take precedence over the agreement’s provisions.

Bulgarian officials were also present at the meeting to discuss the possibility of Bulgaria joining the feasibility study and the infrastructure project.

The project foresees the construction of a high-voltage direct current (HVDC) submarine cable through the Black Sea, connecting Romania and Georgia and extending to Hungary and Azerbaijan.

This energy infrastructure project aims to interconnect energy markets in the Black Sea region and increase supply diversity. Romanian Energy Minister Sebastian Burduja said that energy prices in Eastern Europe are currently higher, partly due to “insufficient diversification”.

Burduja said that the European energy market is not functioning “well enough, with cheaper energy sources not always reaching Eastern Europe”. “That’s why we need additional routes” for security, competitiveness, and green energy, Burduja said at a joint press conference after the meeting.

In addition, the project will support the decarbonisation of the energy sector by transporting mainly energy from renewable sources, Burduja said.

The feasibility study’s initial results are expected to be announced at the ninth ministerial meeting in Baku, Azerbaijan, in November.

Azerbaijani Energy Minister Parviz Shahbazov suggested that this corridor should be linked to another corridor between Europe and Central Asia, creating a single energy corridor between Asia and Europe.

The project could allow Georgia to “become part of the European energy market”, an important step as Georgia seeks EU membership, said Levan Davitashvili, Georgian Minister of Economy and Sustainable Development.

The Green Energy Corridor is supported by the European Commission, with Ursula von der Leyen personally attending the signing of the agreement at the Cotroceni Palace on 17 December 2022. According to the Romanian Energy Ministry, the European Commission has also participated in all ministerial and technical meetings.

(Catalina Mihai | Euractiv.ro)