(MENAFN- AzerNews)
Ulviyya Shahin
Read more
The State Oil Company of Azerbaijan (SOCAR) plans to actively
participate in COP29 and organize discussions to mitigate climate
change effects, Afghan Isayev, Vice President, told Euronews.
Isayev stressed SOCAR's collaboration with national and
international oil companies for sustainable future projects, aiming
to lead regional energy transformation. SOCAR aims to diversify its
energy portfolio by 2035, balancing hydrocarbon and low-carbon
businesses, and align its emissions with global industry
standards.
Head of the Innovative Economic Research Centre of Azerbaijan
Technical University, professor and economist Elshad
Mammadov , stated to Azernews that
increasing the share of the low-carbon business portfolio within
SOCAR's overall business portfolio is positioned as one of its
goals, which is quite understandable.
"This reflects a sensible approach because there is still
significant potential in the country as a whole to achieve optimal
levels of alternative electricity generation. I believe that the
current share of alternative electricity generation is low,
necessitating an increase in the low-carbon generation share within
SOCAR's overall business portfolio. I anticipate that investments
in these fields should yield positive results in the medium term,
given that market saturation levels have not yet reached a point
where investment efficiency would be diminished in these
directions."
According to him, an oil company shouldn't set a critical goal
of matching emissions levels with global industry leaders.
"Global companies operate with diverse approaches and varying
economic impacts. Thus, aligning an oil company's strategy too
closely with global industry standards can lead to significant
issues. Therefore, it's crucial to prioritize local specifics.
While international benchmarks should incorporate scientifically
proven approaches that have shown positive effects, complete
adaptation could result in serious negative consequences.
Currently, many companies have already reached market saturation
in terms of alternative energy generation and low carbon emissions.
SOCAR's advantage lies in exploring investment opportunities in
these areas. Effective investments in alternative energy and low
carbon emissions could yield medium-term benefits, pending market
satisfaction."
Economist considers that the existing and expanding
infrastructure for alternative energy generation certainly holds
promise for returns.
"It will have an impact because, as I mentioned earlier, the
baseline for comparison is low. For example, considering today's
solar or wind electricity generation, since their share in the
country's total energy balance is minimal, appropriate investments
in these areas will be effective. However, it's essential to follow
scientifically grounded approaches. Critical investments in these
directions while reducing investments in traditional electricity
generation could severely disrupt the energy balance."
"In my view, the share of hydro, wind, and solar electricity
generation should be increased to 30%, with hydropower playing a
significant role. This approach is generally optimal and
appropriate under current conditions, and we should aim to achieve
it by 2030. However, pushing for immediate jumps to 60% or 70%
alternative generation, as seen in some European economies with
advanced technological capacities, has caused significant issues.
Therefore, we must ensure our country's energy balance through
scientifically sound and realistic approaches."
MENAFN09072024000195011045ID1108421226
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.