European Energy Interconnection: Why the Black Sea Matters

European energy interconnection is increasingly viewed as more than an infrastructure objective. As Europe seeks to strengthen energy security, integrate renewable resources and improve market resilience, cross-border electricity projects are becoming strategic assets with long-term economic and geopolitical value.

These themes were explored during Energy Week Black Sea 2026, where regulators, transmission system operators, financiers and industry representatives discussed how the Black Sea Submarine Cable could reshape regional electricity markets.

Financing infrastructure beyond traditional models

One of the central messages was that projects of this scale require new financing structures.

Florin Stanciu, Head of Corporate Finance at Transelectrica, explained that the Black Sea Submarine Cable exceeds the investment capacity of a traditional transmission system operator.

With annual capital expenditure typically ranging between €100 million and €150 million, financing must combine multiple sources, including European grants, multilateral financial institutions and potentially private investors.

Such hybrid structures are becoming increasingly important for delivering large European energy interconnection projects without placing additional pressure on transmission tariffs.

Regulatory convergence remains essential

Infrastructure alone is not sufficient.

Davit Narmania, Chairman of the Georgian National Energy and Water Supply Regulatory Commission, described the ongoing process of aligning Georgia’s electricity legislation with European Union rules.

While significant progress has already been made through the implementation of the Third and Fourth Energy Packages, further reforms are needed in areas including:

• congestion management
• capacity allocation
• balancing markets
• guarantees of origin

These regulatory steps are essential for enabling long-term European energy interconnection between Georgia and the European Union.

Interconnection strengthens energy markets

Beyond physical connectivity, stronger interconnection delivers measurable economic benefits.

Vasiliki Klonari, Director of Energy System Integration at WindEurope, highlighted that greater cross-border capacity contributes to:

• lower wholesale electricity prices
• improved system resilience
• faster renewable energy integration
• increased electrification

Studies referenced during the discussion suggest that additional interconnection capacity in South-East Europe could reduce wholesale electricity prices by approximately €15/MWh.

These long-term market benefits reinforce the strategic importance of European energy interconnection.

Energy security and regional cooperation

The discussion also highlighted the geopolitical dimension of the project.

For Georgia, the cable supports closer integration with European electricity markets and accelerates regulatory convergence.

For Romania and the European Union, it provides access to additional renewable energy resources while strengthening regional resilience and reducing dependence on imported fossil fuels.

In this context, European energy interconnection is becoming an important instrument for both economic cooperation and energy security.

A long-term investment in Europe’s energy future

The panel concluded with a pragmatic assessment.

Projects such as the Black Sea Submarine Cable remain technically complex, capital-intensive and dependent on coordinated implementation.

However, with sustained European support, predictable regulation and disciplined project execution, they have the potential to become foundational elements of a more integrated and resilient European electricity system.

As highlighted during Energy Week Black Sea 2026, European energy interconnection is increasingly recognised as an investment in both market integration and long-term energy security.