Hungarian energy experts are unconvinced by the green and security promises of a new Brussels-backed electricity cable project with Azerbaijan.
Azerbaijan agreed Saturday to supply the European Union with electricity via a subsea cable running through Georgia and Romania to Hungary, inking a deal in Bucharest as the bloc diversifies energy supply away from Russia following Moscow’s invasion of Ukraine.
EU, Azerbaijan launch Black Sea electricity link
Azerbaijan agreed Saturday (17 December) to supply the European Union with electricity via a subsea cable, inking a deal in Bucharest as the bloc diversifies energy supply away from Russia following Moscow’s invasion of Ukraine.
“We will build the world’s longest undersea electricity transmission line, bringing cheap, green energy to Hungary,” Orbán posted on Facebook, describing the project as an “energy megadeal”.
According to Hungarian Foreign Affairs and Trade minister Péter Szijjártó, the deal foresees the creation of 3-gigawatt power with a 1,195-kilometre subsea section running green electricity from wind power generated in Azerbaijan, for which Baku is currently looking for investors.
The minister said the World Bank will cover a €2.5 million feasibility study to be completed by the end of 2023, while the European Commission has earmarked €2.3 billion for the project that should “in principle be ready” after another three to four years.
“The renewables are not only good for our planet, but they are also home-grown, create good jobs at home, independence and security of energy supply,” European Commission President Ursula Von der Leyen said during the signing of the memorandum of understanding in Bucharest.
This project “will help reinforce our security of supply by bringing electricity from renewable sources to the European Union, via Romania and through Hungary,” the EU executive chief added.
However, Hungarian experts remain sceptical about the project, EURACTIV’s media partner Telex reported.
Besides human rights concerns and claims such sums could be better spent on energy production closer to home, Telex sources are worried the power line would decrease Russian dependence for Azeri dependence, and thus potentially excessive Turkish influence in a region prone to local conflicts.
Moreover, experts are worried that since the EU is stepping up gas imports from Azerbaijan, importing electricity could also result in over-dependence rather than diversification.
EU overlooks Azeri energy graft risk
As the EU talks of ‘freedom’ from Russian gas for central and eastern Europe and the Balkans, brought by increased imports from Azerbaijan, sceptics warn it comes at a cost: increased reliance on a country engaged in a conflict and …
Additionally, József Turai, Managing Director of T-Energy Consulting Ltd, told Telex he does not really believe that electricity produced in Azerbaijan and Georgia could be truly green despite promises of wind investments.
Based on 2021 figures, renewables account for less than 5% of Azerbaijan’s electricity generation.
In Georgia, the share of renewables, mainly from hydropower, in the total electricity generation mix is 75%. However, last year the energy generated by domestic power plants was 12.6 TWh while consumption was 13.1 TWh, meaning Tbilisi is a net importer of electricity.
Moreover, getting this amount of electricity once the cable emerges in Romania to Hungary would likely require a new transmission interconnection between two EU member states to be licensed and integrated into the ENTSO-E system, the European association for the cooperation of transmission system operators for electricity, according to Turai.
This is because in the EU’s regionally coupled electricity market, there is no long-term capacity reservation, only short-term algorithmic allocation, and it would not be possible to physically reallocate the already scarce transmission capacity of the existing transmission line between Romania and Hungary.
The EU has increasingly stepped up its energy cooperation with strongman-led Azerbaijan in the wake of Moscow’s invasion of Ukraine. However, sceptics warn it comes at a cost: increased reliance on a country engaged in a conflict and with a recent history of bribery and corruption in Europe.
EU looks to autocracies in search for energy
As gas supplies from Russia dwindle and the summer heatwave is soon to be replaced by the winter cold, Europe is looking for alternative energy supplies.
Source: euractiv.com
