(MENAFN- AzerNews)
Nazrin Abdul
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Despite its wealth of energy resources and global recognition as
an energy exporter, Azerbaijan remains committed to developing its
renewable energy sector. This strategic decision isn't just about
enhancing energy security, it is also fostering new industrial
sectors, creating jobs, and promoting sustainable economic
growth.
Under President Ilham Aliyev's leadership, Azerbaijan's energy
security policy prioritizes expanding the usage of renewable energy
sources. As reported by Azernews , in the first
five months of this year, the share of green energy in Azerbaijan's
electricity production reached 14%. The country's installed
capacity for renewable energy sources stands at 1748.6 megawatts,
constituting 20.86% of its total electricity production
capacity.
The head of state has emphasized Azerbaijan's shift towards
green energy in his interviews with the international media. He
highlighted Azerbaijan's appeal to investors in both the
traditional energy sectors and renewable energy projects,
positioning the country for sustainable economic development.
President Aliyev underscored Azerbaijan's key partnerships in
renewable energy projects, particularly mentioning "Masdar" as a
strategic partner. He noted the recent inauguration of three solar
and wind energy stations with a combined capacity of 1 gigawatt,
illustrating Azerbaijan's commitment to sustainable energy
production.
"Masdar is our strategic partner in the field of renewable
energy. Last October, we inaugurated the first 230-megawatt solar
power station. Today, we marked the groundbreaking ceremony for
three solar and wind power stations with a total capacity of 1
gigawatt."
Notably, in collaboration with Masdar from the UAE, Azerbaijan
commenced operations at the Garadagh Solar Power Station (GES) last
year, marking a significant milestone. The Garadagh GES is the
first station built in Azerbaijan with foreign investment.
Moreover, during Baku Energy Week on June 4, Azerbaijan laid the
foundation for the Neftchala, Bilasuvar Solar Power Stations, and
Absheron-Gobustan Wind Power Station in cooperation with Masdar.
Together, these stations will boast a total installed capacity of
1000 MW.
The stations are expected to generate 500 million kilowatt-hours
of electricity annually, save 110 million cubic meters of natural
gas, and reduce carbon emissions by more than 200,000 tons.
Azerbaijan's commitment to reducing greenhouse gas emissions is
reflected in its pledge to cut emissions from energy production by
40% by 2050 and establish "zero-emission" zones in recently
liberated territories. Significant strides are already underway in
this direction.
President Ilham Aliyev also highlighted commitments related to
transitioning to a green economy.
"This is just the beginning, as we plan to implement all the
contracts and MoUs, and that means up to ten gigawatts in mid-term
and up to five gigawatts until 2030," the head of state said.
Besides, the President emphasized Azerbaijan's potential in
renewable energy and the importance of attracting investments in
the country's capital environment. Investments in this sector are
currently among the top priorities.
It's worth noting that Azerbaijan offers a favorable capital
environment. According to the World Bank, Azerbaijan ranks 30th
globally in terms of business opportunities, aligning with its
strategy and potential for attracting investments in renewable
energy.
Azerbaijan's primary strategy in transitioning to green energy,
despite its reputation as an oil and gas nation, involves directing
revenues towards renewable energy fields as planned. This approach
effectively utilizes oil revenues to diversify the economy.
"There is a good investment climate. It really demonstrates how
a country that generated wealth from fossil fuel is now channeling
this wealth into renewable energy. As a host country of COP29, this
is also our obligation to be among the frontrunners on green
transition," the President said.
While discussing significant efforts towards transitioning to
green energy, it's important to acknowledge initial challenges
within the country. The President noted that every new venture
carries uncertainties, but Azerbaijan benefits from strong
partnerships.
"We have great partners, Masdar, as I said, is a strategic
partner but we have also ACWA Power, bp among our investors, and
many more companies from different countries that are planning to
work with us. So, in oil and gas, we know the whole alphabet. Here
we just start. Therefore, the challenges could be with the national
energy grid, because we need to reinforce it to be able to absorb
as much as we can offer to investors"
It's important to highlight that ACWA Power, a prominent Saudi
Arabian company, is currently implementing a 240 MW wind power
station project in Azerbaijan.
In 2022, Azerbaijan's Ministry of Energy and ACWA Power signed a
Memorandum of Understanding on cooperation in offshore wind energy.
The memorandum aims to establish basic principles for collaboration
in offshore wind energy, evaluate potential profitable investments
in Azerbaijan's renewable energy projects, and facilitate
cooperation.
On January 13, 2022, the foundation laying ceremony for the
"Khizi-Absheron" Wind Power Station, built by ACWA Power in
Azerbaijan, took place with the participation of President Ilham
Aliyev and Prince Abdul Aziz bin Salman Al-Saud, Saudi Arabia's
Minister of Energy.
The "Khizi-Absheron" WPS, with a capacity of 240 megawatts, will
be Azerbaijan's largest electric power station in the renewable
energy sector. Operations are slated to commence in 2025.
The station is expected to produce one billion kilowatt-hours of
electricity annually, save approximately 220 million cubic meters
of natural gas, and prevent over 400,000 tons of carbon emissions
from entering the atmosphere.
This joint project with Saudi Arabia holds significant
importance, contributing to Azerbaijan's energy security, creating
numerous jobs, conserving natural gas, and reducing environmental
impact.
The "Shafag" solar-electric station, planned in collaboration
with bp on recently liberated lands, will play a crucial role in
achieving these goals and contribute to initiatives in Garabagh and
Eastern Zangazur.
When discussing substantial efforts towards transitioning to
green energy, it's crucial to mention SOCAR's plans to connect
electricity cables to offshore platforms, aiming to reduce natural
gas consumption at facilities within Azerbaijan's territory. SOCAR
also plans to construct an underwater cable project across the
Black Sea for transporting green energy from Azerbaijan to
Europe.
President Ilham Aliyev emphasized that the primary goal is
exporting energy derived from renewable sources, necessitating
robust collaboration with neighboring countries to strengthen
energy grids. He reiterated the importance of international
partnerships and highlighted the role of direct foreign investments
in Azerbaijan's energy sector during Baku Energy Week.
In conclusion, Azerbaijan's strides towards renewable energy,
despite its oil and gas prominence, signify a strategic shift
towards sustainability. President Ilham Aliyev's commitment
positions Azerbaijan as a key player in the global energy
transition and a pivotal hub for international cooperation in the
energy sector.
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