Memorandum of Understanding on the implementation of a green energy corridor

Representatives of Transelectrica, AzerEnerji, Georgian State Electrosystem and MVM recently signed a Memorandum of Understanding (MoU) in which they agree to make the necessary efforts to establish a joint venture based in Romania to implement the green energy corridor project.

The document was initialed in connection with the implementation of the Agreement between the Governments of Azerbaijan, Georgia, Romania and Hungary on the Strategic Partnership for the Development and Transport of Green Energy – Green Energy Corridor Project.

The joint venture agreed to be established would ensure the implementation of the Green Energy Corridor project in line with the agreement between the four countries.

The Memorandum of Understanding signed in Bucharest lays the foundations for an overall framework of agreement between the four relevant parties to commence the procedures for establishing a joint venture, subject to each company’s prior statutory agreements. Therefore, after establishing complete and appropriate information regarding the new joint venture, Transelectrica is to convene a General Meeting to obtain consent to participate in its share capital.

The Green Energy Corridor is an ambitious project agreed by the governments of Azerbaijan, Georgia, Romania and Hungary with the support of the European Commission, which will integrate regional energy capacities and ensure a competitive price for renewable electricity, in line with the EU’s current energy transition goals.

The Romanian Transmission System Operator, designated by the Romanian Government as the relevant party in this project, is working closely with other relevant parties in the partner countries to achieve the objective of this very complex project, i.e. assessing the potential of clean energy production and exchange in the Caucasus/Europe and design related infrastructure, taking into account technical, economic and regulatory aspects.