Hungary’s MVM: Black Sea green energy cable may cost billions, feasibility study due in 2025

According to the CEO of Hungary’s MVM Group, the feasibility study for the Black Sea Submarine Cable (BSSC) project linking the Caspian region to Central Europe is expected to be completed in the third quarter of 2025.

Speaking at the conference “Innovative Pathways to a Greener Future: Renewable Energy and Emissions Reduction”, Károly Mátrai said the technical and economic assessment is being carried out by Italian consultancy CESI, which has already submitted its initial findings, Caliber.Az reports per local media.

“Even at this early stage, it is clear that the required investment will amount to several billion euros – that’s beyond question,” Mátrai noted. “I fully agree that we have no time to lose. But it’s obvious that executing this project, particularly laying the cable from Baku to Budapest via the Black Sea, will take more than just a year or two.”

According to Mátrai, the construction phase alone could take three to five years.

He also stressed the need to develop a new implementation methodology for what he described as a “large-scale investment project”, potentially costing around €2 billion.

“Before moving forward, we must resolve several critical issues. First, the technical feasibility – can the project be realised at all? Secondly, we need to assess whether there is a genuine market in Europe for such volumes of green electricity,” he said.

Mátrai highlighted the strategic significance of the project’s underwater infrastructure, which he believes could enable two-way energy flows between Europe and the Caspian region.

“There will be times when the Caspian energy market supports Europe, and at other times, the European market can help stabilise the Caspian region. Both scenarios are possible and require thorough analysis.”

He added that CESI has already completed a modelling exercise using the Plexos power market simulation platform and expressed keen interest in seeing the final results.

“Despite the challenges, I remain convinced of the project's enormous potential – particularly if we can secure financing for the infrastructure and construction. From Hungary’s perspective, this is a strategic undertaking, not just for diversifying routes, but the energy sources themselves,” Mátrai concluded.

By Aghakazim Guliyev