Black Sea Submarine Power Cable Project: Georgia's New Transit Perspective

Abstract

In the modern world, along with the growth of the population and the production process, the demand for energy increases, which consequently causes a shortage of energy resources and exacerbates the problems related to climate change. In order to solve the problem of exhaustible resources, the world began to use renewable energies: wave, wind, biomass, solar, geothermal, and hydropower. Sustainable energy development implies a synergy of energy efficiency, renewable energies, and policy development, which in turn requires the availability of resources, significant investments, strong political will, and cooperation between different regions and countries.
The Black Sea underwater electric cable project provides a new opportunity for the development of the energy sector of Georgia. The project implementation initiative that belongs to Georgia is already a reality today. On December 17, 2022, the "Project of the Century" was signed, which ensures the export of green energy to the European Union through the Black Sea. The project aims to connect the South Caucasus region with South-Eastern Europe. It will contribute to the strengthening of energy security, the development of the renewable energy sector, and the increase of transit opportunities between the mentioned regions.
The Black Sea submarine electric cable project will connect the electrical systems of Georgia, Azerbaijan, Romania, and Hungary. The project is significant for all parties involved in it. However, there are relevant questions, in particular, what economic benefits the project can bring to Georgia and what should be done to get the maximum benefits. It is important that Georgia is represented in the project not only as a transitor but also as an exporter.
The article evaluates the transit potential of the Black Sea submarine electric cable project and the stimulating role of the project on participating countries' energy security and green energy production. Opinions are expressed about the challenges and economic benefits related to the implementation of the project.