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Tuesday, 17 May 2022 07:15 GMT

Azerbaijan stakes on alternative energy - prospects and new opportunities


(MENAFN- Trend News Agency)

BAKU, Azerbaijan, Jan. 16

Trend:

A significant event occurred in Azerbaijan last week. The groundbreaking ceremony for the 240 MW Khizi-Absheron wind farm, which will be built by the Saudi Arabian ACWA Power company, was held.

President of Azerbaijan Ilham Aliyev and Minister of Energy of the Kingdom of Saudi Arabia, Prince Abdulaziz bin Salman al-Saud attended the ceremony and delivered speeches. It is important to stress that this is the first such project in Azerbaijan, which will be fully implemented through foreign investments.

The project will be implemented in Sitalchay and Perekeshkul villages of Absheron district. The wind farm will generate about 1 billion kwh of electricity per year, save 220 million cubic meters of gas and prevent emissions of more than 400,000 tons of CO2 into the atmosphere. Moreover, this project envisages new jobs and a prospect for the manufacturing and service sectors.

Moreover, a memorandum of understanding on cooperation in the field of offshore wind energy was signed between the Ministry of Energy of the Republic of Azerbaijan and ACWA Power company of the Kingdom of Saudi Arabia on the same day in Baku.

The memorandum envisages the cooperation in determining the main principles of cooperation in the field of offshore wind energy, assessing the potential and creating the conditions for profitable investments in renewable energy projects in Azerbaijan.

The steering committee and a working group will be established to guide and control the activity being carried out within the memorandum.

The topic of the so-called 'green transition' - reducing of environmental pollution in connection with energy production has become one of the most relevant topics in the modern world.

As for Azerbaijan, a number of extremely important decisions were made in Azerbaijan in 2021 to stimulate the alternative energy sector, which has great potential for the future development of the national economy.

In particular, the mechanisms were determined to support the use of renewable energy sources in electricity generation.

According to the Azerbaijani legislation, several mechanisms, which will encourage businessmen to invest in the production of electricity from renewable sources, are planned to be implemented at once.

In particular, the matter rests in the guaranteed tariffs, support for active consumers, scientific research in the field of renewable energy sources, as well as tax incentives.

Moreover, the procedure for setting tariffs for electricity which is produced from renewable energy sources has been determined.

Power engineering is traditionally one of the most important sectors of the Azerbaijani economy.

This sector will be greatly changed in 2022 even despite the ongoing COVID-19 pandemic. Azerbaijan is actively and intensively developing such a new and extremely promising sector as alternative energy.

President Ilham Aliyev pays great attention to the development of the sector and foreign investors are already investing hundreds of millions of dollars in the Azerbaijani economy.

The specialists were holding discussions a few years ago whether it is so necessary to invest huge funds in the development of the sector while today the importance of renewable energy sources is well known.

Azerbaijan, despite the big oil and gas reserves, is investing in the development of alternative energy, relying not only on traditional sources, but also on the development of advanced spheres.

Azerbaijan's potential in the field of alternative energy is very high and certainly is the highest in the region.

Most of the total potential of alternative and renewable energy sources in Azerbaijan accounts for solar energy - 5,000 megawatts.

Wind energy – 4,500 megawatts ranks second while the rest part is biomass (1,500 megawatts), geothermal energy (800 megawatts) and the potential of small rivers (350 megawatts).

It is important that along with the development of the domestic market, Azerbaijan is actively negotiating with foreign partners in the field of renewable energy.

For example, the Montenegrin Adriatic Capital company is interested in joint participation with Azerbaijan in the projects on the use of solar energy.

The company's delegation has recently held the talks in Baku at the Azerbaijani Ministry of Energy and has already inspected some areas of the country's territory that may have potential.

As far as the sector is being developed, the costs of its development are being reduced. This is explained not only by the global trend to reduce costs for the development of this sector, but also by the work that is being carried out and will be carried out in Azerbaijan in the field of establishing the production of the necessary equipment and technologies.

The huge potential of this sphere in Azerbaijan is obvious, but the most important factor in the future development of renewable energy in Azerbaijan is the policy being pursued under the leadership of President Ilham Aliyev.

Azerbaijan has achieved great success in developing the business climate thanks to President Ilham Aliyev's efforts and attention.

This attracted the world's biggest investors to Azerbaijan, who are ready to invest huge funds in promising projects not only in power engineering, but also in many other sectors.

The stability, excellent business and investment climate and the great political will which is shown by the country's leadership are the key to the success of the Azerbaijani economy.

Emin Aliyev

Editor-in-chief of Trend news agency

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