Hungarian company CEO announces start of talks for investments in Azerbaijan's renewable energy sector

Károly Mátrai, the CEO of Hungarian energy company MVM, announced that the company has begun negotiations regarding potential investments in Azerbaijan's renewable energy sector.

He made this statement during an event titled "Innovative Pathways to a Greener Future: Renewable Energy Sources and Emission Reduction" on April 7 in Baku, Caliber.Az reports, citing local media.

"We started our activities in Azerbaijan thanks to our business relationships with partners on the Shah Deniz project. We are currently in the early stages of negotiations regarding potential investments in the country’s renewable energy sector. Although no final decisions have been made yet, we are confident that the ‘Green’ energy corridor from the Caspian Sea to the Black Sea and Europe presents significant opportunities for us," said Mátrai.

According to him, the company hopes to make a substantial contribution to the development of green energy in Azerbaijan: 

"We view Azerbaijan as one of the key partners in the region and hope to become part of its sustainable energy future."

He emphasized that the creation of the "green energy corridor" under the Black Sea has strategic significance for Hungary.

"Just as the Shah Deniz project opened the way for our country to diversify gas supplies, the green corridor represents a new strategic opportunity—this time in the electricity sector," the CEO pointed out.

Mátrai explained that Hungary does not produce enough electricity and covers 20-25% of its needs through imports, depending on weather conditions.

"The green energy corridor will provide access to affordable electricity from the Caspian region. This will create both an economic and political foundation for further diversification of supplies. This is where its strategic importance for Hungary lies," he said.

Additionally, the head of MVM emphasized that the implementation of this project could become a turning point for the entire region.

"In the Balkans, due to a lack of generating capacity, electricity prices sometimes reach extremely high levels. If we can establish electricity supplies from Azerbaijan through the green corridor, it will help stabilize and possibly reduce tariffs compared to current levels," Mátrai added.

By Khagan Isayev