(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 4. The
International Finance Corporation (IFC) is well-placed to work with
Azerbaijan in the renewable energy area and help it reach the next
level, by leveraging private investment, Ivana Fernandes Duarte,
IFC's Regional Manager for the South Caucasus, said in an exclusive
interview with Trend.
She pointed out that IFC and the International bank for
Reconstruction and Development (IBRD) are working with the
Azerbaijani government on how to implement an offshore wind
roadmap, to initiate offshore wind development, and attract
developers and private investors to the country.
"While a major boost in oil and gas production played a key role
in strengthening Azerbaijan's economy, energy diversification is
key to its future resilience in a post-COVID world. Moving forward,
Azerbaijan is ready to optimize its non-oil sectors through
innovative private sector initiatives in line with its 2030
national development vision. Diversifying away from oil and gas
will help accelerate the nation's decarbonization efforts,
increasing competitiveness. Azerbaijan has ample renewable energy
resources, with significant potential in offshore wind. The
country's technical potential of 157 gigawatts-as estimated by an
analysis by the World Bank's Energy Sector Management Assistance
Program-is massive, compared to the country's current total
installed capacity of around 8 gigawatts," said Duarte.
She noted that an offshore wind roadmap-released by Azerbaijan's
Ministry of Energy, the IBRD, and IFC-shows the country has the
potential to install 7 gigawatts of offshore wind power by 2040.
"Harnessing this wind power will help create over 69,000 full-time
equivalent years of employment and up to $7 billion in local gross
value added. As Azerbaijan follows a private sector-led growth
model, developing offshore wind generation will allow the country
to make the power sector more competitive, while also helping the
country achieve net-zero emissions in this sector. Ultimately,
Azerbaijan can export renewable energy to its neighbors and to the
rest of Europe, positioning itself as a regional energy
powerhouse," added IFC's Regional Manager for the South
Caucasus.
The country receives great international support in the
development of renewable energy sources.
A number of agreements have already been signed with foreign
partners. Agreements with companies such as Masdar, ACWA Power, bp,
as well as a contract with the Australian company Fortescue Future
Industries for 12 GW, are of strategic importance in terms of
increasing the supply of energy resources to Europe. The first
240-megawatt solar power plant with bp is scheduled for
inauguration by the year's end. Azerbaijan has entered into
Memorandums of Understanding (MoUs) and contracts for a total
capacity of 10 gigawatts.
The main market for green energy from Azerbaijan is Europe and
there is already a specific project within which energy will be
supplied from renewable sources. So, on December 17, 2022,
Azerbaijan, Georgia, Romania and Hungary signed an agreement on
strategic partnership, which provides for the construction of an
energy bridge from the Caucaregion to Europe.
As part of the agreement reached, the construction of a Black
Sea Energy submarine electric cable with a capacity of 1,000 MW and
a length of 1,195 km is expected. The cable will be intended for
the supply of green electricity produced in Azerbaijan through
Georgia and the Black Sea to Romania for onward transport to
Hungary and the rest of Europe. This will allow supplying up to 4
GW of green energy.
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