2022-12-17
H.E. Irakli Garibashvili, Prime Minister of Georgia:
Dear Colleagues,
Dear Friends,
I am pleased to address the distinguished audience at today's important gathering. At the outset, I would like to thank the Romanian side for hosting and organizing this event, which has a historical importance. I also thank Ursula von der Leyen, President of the European Commission for supporting the project.
Present geopolitical challenges and the war in Ukraine has made the need for diversification and resilience even more imperative, in order to address urgent challenges of energy security. Georgia's strategic geographic location makes us a natural bridge between the West and the East, serving as a gateway for eight landlocked countries of South Caucasus and Central Asia; a crucial link on EU's Global Connectivity map and a game changer, when it comes to diversification of transport routes and energy supply to Europe.
With this in mind, we have made connectivity a top priority, with a special vision of connectivity of the Caucasus region and Europe. We are investing in expanding and modernizing our energy, digital and transport infrastructure; we are bringing these sectors in line with the EU norms and standards according to the commitments under the AA/DCFTA, Common Aviation Area Agreement and within the Energy Community. Extended TEN-T core network and the EaP Economic and Investment Plan provide important tools to facilitate investments in the strategic projects that have national and the wider regional value as well.
Dear Friends, a few years ago, with the initiative of Georgia, work started on the project, which envisages the connection of the electric energy systems of the Caucasus region and Europe by means of a high-voltage underwater power transmission line. Today, by signing the "Agreement on Strategic Partnership in the field of Green Energy Development and Transmission between Azerbaijan, Georgia, Romania and Hungary" we are confirming the readiness of our countries to cooperate closely in terms of "green energy" supply.
As you may be well aware, Georgia has substantial potential for power generation surplus from renewable energy sources that it can supply to neighboring countries. Today, we have the appropriate infrastructure for electricity supply to all our neighbors, except Europe, The Black Sea Underwater Electricity Transmission Cable holds an important prospect to this end. Project will support development of the renewable energy sector and increase transit opportunities/back-to-back trade options between the EU and South Caucasus Region. As a result of this project implementation, by connecting the power systems of Georgia, Romania, Azerbaijan and Hungary, Europe will be able to connect not only with Georgia, but with the entire South Caucasus region.
In June 2020 the World Bank prepared a report on Preliminary Economic Analyses of the Black Sea Submarine Cable project, which proved that the above-mentioned project is economically viable.
On April 26 of 2021, GOG announced a request for expression of interest for the feasibility study of the Black Sea underwater electricity transmission cable and digital line construction project. The selection was carried out in accordance with the World Bank Procurement Procedures. As the result of selection, the winner has been identified. The feasibility study commenced on May 11 of 2022 and will be implemented during an 18 months' period.
To this end, I should emphasize that strengthening the interconnections and energy transit capabilities of the region is of strategic importance for my Government. Being a credible transit partner, Georgia has been a key link for the delivery of hydrocarbon resources via major regional energy transit routes from the Caspian Sea basin to the West.
The implementation of this project, opens a new dimension for the development of strategic partnership between our countries and once again let me reiterate, that Georgia having huge potential for production and export of renewable energy, will contribute to the strengthening of Europe's energy security.
Thank you.
H.E. Klaus Werner Iohannis, President of Romania:
Dear President Ursula Von Der Leyen,
President Ilham Aliyev,
Prime Minister Garibashvili,
Prime Minister Orbán,
Prime Minister Ciucă,
Distinguished Ministers and Participants,
Let me start by saying a warm welcome to Romania, here, to Cotroceni. Thank you for your presence here and your partnership in concluding this crucial quadrilateral document - The Agreement on Strategic Partnership in the Field of Green Energy Development and Transmission between the Governments of Azerbaijan, Georgia, Romania and Hungary.
Our main focus today is energy security and regional cooperation. These topics have been key priorities for Romania, for our foreign policy, but also for our national development strategies. These topics have been key priorities for the European Union as well.
Given the current security context, marked by the military aggression against Ukraine, we need to cooperate better and show more solidarity for mitigating common challenges.
Today's agreement sets-up a framework for a long-term cooperation between our countries in a number of very important areas: first is the production, transportation and trade of clean energy; second is the development of a new transmission infrastructure, namely a Black Sea Green Electricity Submarine Cable; third is the joint projects on the development of Green Hydrogen and fourth is the energy efficiency. This is an ambitious agreement! It shows that we can provide together a valuable contributions to strengthening Europe's energy security. And it will contribute to the sustainable growth for the countries in the region.
We also want to move forward more boldly towards clean energy, but challenges posed by climate change affect all of us.
Dear Colleagues, security, climate and economic challenges require more interconnections and cooperation regionally and globally.
Our energy cooperation responds to a strategic impetus. It will enhance our energy resilience and ensure diversification of supply and transport routes. It is market-driven, given increased energy demand in Europe and the green energy potential in the Caspian Sea region - particularly in Azerbaijan. It takes forward a tangible flagship initiative within the Eastern Partnership.
I welcome the presence at today's ceremony of the President of the European Commission - Mrs. Ursula Von Der Leyen. It gives us confidence that a strong and continuous support of the European Commission for our joint endeavors exists.
More concretely, as a next step, our ambition is that a digital cable will be laid alongside the submarine electricity power line and we envisage the expansion of the maritime transportation links towards Georgia from our own harbor in Constanta. These endeavors will enhance connectivity with Azerbaijan and further on to Central Asia.
A lot of work is ahead of us to tap the potential and increase our resilience. I am glad that the agreement we sign today builds for this purpose. Thank you!
H.E. Ursula Von Der Leyen, President of the European Commission:
Thank you very much Mr. President, Dear Klaus! And thank you very much for welcoming all of us to Bucharest. I am very glad to be here for this important day together with leaders from Georgia, Azerbaijan and Hungary.
This agreement will bring the European Union to our partners in the South Caucasus region and it will both help our regions achieve the clean energy transition.
Since the beginning of Russia's war, we have decided to turn our back on Russian fossil fuels and to diversify towards reliable energy partners, like the partners here - around the table. And it is working! The European Union has been able to compensate the cuts in Russian pipeline gas, but this is not just about handling the new geo-political energy situation. It is also about grounding our future in clean, affordable and secure energy sources. And these are the renewables! Renewables are not only good for our planet, but they are also good for home-grown energy, good jobs at home, independence and security of energy supply. I am very glad that our agreement puts so much emphasis on renewable energies.
To integrate the growing share of renewables, we need indeed stronger electricity interconnections and this is why the Black Sea electric cable between Romania, Georgia and Azerbaijan is so important. And I can only say, what an ambitious project!
It would connect us on both sides of the Black Sea and one further - towards the Caspian Sea region, both for digital communication and for energy. It will help reinforce our security of supply by bringing electricity from renewable sources to the European Union via Romania and through Hungary.
The Black Sea electric cable is a new transmission route full of opportunities! This project could bring Georgia - a country with a European destiny - great benefits as well. It could transform the country into an Electricity Hub and integrate it in the EU internal electricity market. And, finally, the Black Sea electricity cable could also help bring the electricity to our neighbors in Moldova and Western Balkans and, of course, to Ukraine. It will help start rebuilding Ukraine's energy system and the reconstruction of the country.
So, as you can see from my words, the project holds a lot of promises. Now it is on us to deliver - to deliver on security of energy supplies and for carbonizing our economies. This is why I look very much forward to the results of the Feasibility Study that is currently ongoing. We will be ready to support, because we now have the possibility to financially support projects of mutual interest with our neighboring countries and mutual interest is very clear and evident.
So, today we can say that the two shores of the Black Sea have never been closer! Finally, allow me a word of thank you for our Romanian hosts. Thank you very much for making this possible today. It is a pleasure to be here.
H.E. Ilham Aliyev, President of the Republic of Azerbaijan:
Dear Colleagues! Ladies and Gentlemen! First of all, I would like to express gratitude to President Iohannis for the invitation and for hosting this important event. Implementation of the Agreement on Strategic Partnership in the Field of Green Energy Development and Transmission, which will be signed today, will be our common contribution to Europe's energy security. This agreement is an important step in creating a Green Energy Corridor. I would like to express special gratitude to the President of the European Commission Mme Ursula Von Der Leyen for her continuous support to Azerbaijan in the projects of energy security and energy diversification.
This July, during the visit of Mme Von Der Leyen to Azerbaijan, we signed a Memorandum of Understanding on Strategic Partnership in the Field of Energy Between Azerbaijan and EU. And I already started to implement this document.
Last year Azerbaijan's export of natural gas to the European Union's market was 8.2 billion cubic meters, this year - 11.3, next year it will be at least 11.6. Total export of natural gas from Azerbaijan next year will be almost 24 billion cubic meters. In comparison, in the year of 2021 it was 19. Yesterday, SOCAR and ROMGAZ signed a contract on gas supply from Azerbaijan to Romania, starting from January 1 of the next year. So, Azerbaijan is expanding the geography of its supplies to European markets. This is a win-win situation. Europe needs to strengthen its energy security, while Azerbaijan needs a reliable market for its huge energy resources.
Today we start to build another energy bridge from Azerbaijan to Europe. Our country plans to become an important supplier of electric energy to Europe, mainly green energy. Azerbaijan's renewable energy potential is more than 27 gigawatts of wind and solar power, onshore and 157 gigawatts of wind power in the Azerbaijani sector of the Caspian Sea.
Together with one of our country's strategic investors we plan to implement 3 gigawatts of wind and 1 gigawatt of solar power by 2027, 80% of which will be exported. By 2037we plan to create an additional capacity of at least 6 gigawatts. Thus, only one global energy company is planning to invest in the creation of 10 gigawatts of green energy in Azerbaijan.
Two days ago, the Ministry of Energy of Azerbaijan signed a Framework Agreement with another global energy company. This company is planning to invest in the creation of up to 12 gigawatts of wind and solar energy in Azerbaijan. So, at least 3 gigawatts of additional transmission capacity should be created for the first phase of Azerbaijani export.
In order to achieve our goals, we must work efficiently. Azerbaijan, Georgia, Hungary, Romania should work as one team and in close cooperation and coordination with the European Union.
I wish all of us success!
H.E. Viktor Orbán, Prime Minister of Hungary:
Let me welcome you and thank Romania for the invitation.
I visited Romania after eighteen years and have witnessed an outstanding transformation. Progress is very vivid and I congratulate the country with this advancement. Development of the country evidences that Romania's Application for the Schengen Zone is truly deserved. We made a wrong decision at the EU and this should be corrected. Romania should become a member as soon as possible. I assure my Romanian friends that you can rely on us. We will achieve this goal by all means.
As for the current situation, the situation is so confusing and we have not witnessed it in our neighborhood. Serious energy crisis is witnessed in neighboring countries, which is manifesting in the crisis of supply and prices. At the same time, the entire European economy is challenged with inflation and European leaders - whether they like it or not - will have to make a decision and choose between Russian or European economies. At the same time, we have to make unprecedented measures to safeguard our markets more than ever before.
Economic history evidences that when cheap energy and row materials were imported to Europe from Russia, it is already a past and does not belong to the present. Our economic growth and security should be based on new efforts.
We did not have a new strategy. Now we have a signing ceremony of a new Strategic Agreement and our leaders should ensure that our nations - our countries - are given economic and energy security. We have gathered here as we have agreed that this is the solution. We have identified renewable energy resources as the solution and way for the future. Diversification is a dream only until the physical condition and interconnection is achieved.
We have an opportunity for energy supplies from the Caspian Sea within reasonable reach to the territory of Europe and this cooperation initiative is coming from Azerbaijan with support of the European Commission. I am delighted that President Aliyev has always been open to the idea of cooperation with the EU. Europe can always count on Azerbaijan as a reliable partner and supplier.
We may carry out a unique investment in the entire world to make a difference. When imports will increase it will be a desired solution to the problem. We plan to build the longest electricity cable. It is an innovation. Were I 30 years younger, I would have said that it is a true rock and roll that the longest cable will be built under the surface of the Black Sea.
I wish to thank our friends in Azerbaijan, Georgia and Romania, as well as the President of the European Commission for having an opportunity to sign this agreement in the energy sector.
H.E. Nicolae Ciucă, Prime Minister of România:
Thank you very much, Your Excellency! Good morning! Your Excellences! Distinguished Participants! I might add my voice to the welcome already addressed to all of you by His Excellency President Iohannis.
As a contribution to this discussion, I intend to focus on our perspective of the Intergovernmental Agreement to be signed soon. This agreement responds to the urgent need of greening of the energy sector, while enhancing the energy security.
Your presence here, Mme President Von Der Leyen is also a confirmation of the strategic importance of the Agreement from the EU connectivity perspective. In times of crisis, we need to stay united and bring together our potential and resources. Romania is committed to investing in energy production and energy infrastructure, and in cooperation with our partners to promote energy security for us and for the entire region.
As a consequence, Romania will play an important role as a transit country and the regional energy hub, offering alternatives to our neighbors and partners in the European Union, but to the Republic of Moldova and Ukraine.
The Agreement represents an important step forward towards strengthening the mutual long-term cooperation in the field of energy.
The signing of this document represents an important milestone in the framework of EU efforts aiming at increasing the role of Green Electricity in fighting global warming and strengthening the resilience of the energy systems.
The agreement will also enable us to better confront the current challenges impacting our energy security. These are the current energy crisis, exaggerated by the Russian Federation's unprovoked war in Ukraine, the effects of the COVID-10 pandemic on our economies, as well as the inflationary pressures.
The energy sector has been stressed by turbulence in the energy market, highly volatile energy prices and energy insecurity across the world.
As we assume, the regional meeting of Energy Ministers hosted in Bucharest in September, we can contribute together to the necessary solutions for consolidating the energy supplies for our economies, as well as for our western partners and friends, whose efforts are closely connected with our region.
It has never been more important than nowadays to capitalize on the existing potential related to renewable energy generation capacity in view of developing a green electricity trade between the Republic of Azerbaijan and Georgia - on the one hand - and Europe - on the other hand.
This is especially important as here together with EU and international partners work towards advancing their contributions to achieving the energy and climate ambitions enshrined in the 2015 Paris Agreement and the European Green Deal.
Romania expresses full commitment to translating the provisions of the Intergovernmental Agreement into action. Thanking once again the parties for their cooperation and perseverance in laying the foundation to the Quadrilateral Strategic Partnership.
Last, but very important, I would like to warmly welcome the progress in agreeing the delivery of Azeri gas to Romania as early as the beginning of 2023. This is great news as Romania will have additional safeguards in terms of energy security. Before concluding, a particular thanks goes to Ministries of Energy and Foreign Affairs that work intensively to find the bilateral and regional solutions for our regional security. Thank you very much!