Caspian Energy Media — Oil, Gas & Energy News from the Caspian Region

Bakielektrikshebeke OJSC modernizing  energy system in capital
Baba Rzayev, Chairman of the Board, Bakielektrikshebeke OJSC

Caspian Energy (CE): Mr. Rzayev, how do you assess the work that Bakielektrikshebeke OJSC is carrying out for modernization of the energy supply system of the capital of Azerbaijan? 

Baba Rzayev, Chairman of the Board, Bakielektrikshebeke OJSC: The history of creation of sovereign Azerbaijan’s energy system has inseparably been associated with the name of All-National Leader Heydar Aliyev and is modernized within the framework of state programs approved by President of the Republic of Azerbaijan Ilham Aliyev in different years. The energy system passes the stage of development and creation in accordance with world standards. This sector’s development strategy which has been determining the basic directions of the 10-year development period of the energy system of the country was set by the “State program of development of the fuel-energy complex of the Republic of Azerbaijan for 2005-2015”. This program is a strategic document as it laid the foundation for general development of the fuel-energy complex of the republic as well as for dynamic development of energy distribution networks within the city of Baku. 

Purposeful work carried out within the framework of this program ensured macroeconomic stability, encouraged dynamic development of the economy and improved living standards of the population as well. The “state program of social-economic development of regions of the Republic of Azerbaijan for 2009-2013”, the “state program of social-economic development of Baku and its settlements for 2011-2013” as well as other state programs concerning the development of the country economy have always played an important stimulating role in successful implementation of the tasks envisa­ging modernization of the energy system in whole. The introduction of program requirements enabled to ensure development of social-economic infrastructure of Baku and its settlements, improve the work of services bearing responsibility for gas, thermal and road systems, transport sector, water supply and sewerage as well. 

In view of implementation of the abovementioned state programs Bakielektrikshebeke OJSC is conducting large-scale reconstruction work for supplying qualitative and stable electricity to the capital and its settlements, provi­d­­­­i­­ng high quality services to subscribers and modernizing electricity network in accordance with world standards’ requirements. 

Bakielektrikshebeke OJSC which aims mainly at provision of an uninterrupted and qualitative electricity specializes in power supply and is an enterprise that gained broad experience and went through a long way of historical development. It should be noted that the electricity network system of the capital was in extremely tight situation during the period it was controlled by foreign investors and the first years of the country’s independence with no funds allocated for strengthening material-technical base, modernization and expansion of electricity systems and networks. 

Considering that hard situation in the energy supply sphere, President of the Republic of Azerbaijan Ilham Aliyev signed an order dated August 10, 2006 on recovery of  Bakielektrikshebeke OJSC to improve the network operation, electricity supply and provide timely collection of fees for electricity consumption. 

With the purpose to overcome the crisis in the field of electricity supply, Bakielektrikshebeke OJSC worked out an investment program for fulfillment of tasks envisaged in the order.  Large-scale work on reconstruction and upgrading of electricity networks of the capital was commenced so that to fully meet the needs of the capital, create a center of new capacities, modernize networks through usage of new technologies and change the personnel for raising the skills of employees. 

CE: Could you please tell about the work performed for non-break and high-quality electricity supply to the population?

Baba Rzayev: It is possible to supply high quality electricity to consumers only through creation of the ring energy system complying with international standards. In this regard, construction of 110 kV substations plays a priority role in the investment program. The project on creation of the 110 kV ring system will enable to meet electricity needs of Baku city. Apart from this, the system will guarantee meeting of electricity needs of the capital in future. 

President of the Republic of Azerbaijan Ilham Aliyev attended (January 31) opening of a 110/35/6 kV substation of Bakielektrikshebeke OJSC in Narimanov district of the capital. By means of a video conference he viewed opening of 35 kV substations in Nasimi district (substation #117), Surakhany district (Hovsan), Binagadi district (#207), Bibiheybat settlement of Sabayil district (substations #102 and 118), as well as opening of administrative buildings in Khazar, Surakhany, Sabunchu, Garadagh, Yasamal districts and the Control departments building as well. 

The transmission and distribution network has been fully modernized since 2006 in accordance with the directions of President Ilham Aliyev. The investments to this sphere totaled over 606 mln AZN. 20 units of 110kV substations were built over the past period. All the mentioned played an important role in ensuring regular, sustainable and high quality power supply to the capital and Absheron peninsula. 51 units of 35 kV substations have been built so far. The receiving and distribution capacity of the power grid of the capital increased by almost 80% owing to complex measures introduced. Installed capacity of the power grid has grown from 3048 up to 5245 megavoltampere since 2006. Technical losses reduced down to 8%. A modern dispatching control room and a circular supply scheme were created. Bakielektrikshebeke OJSC carries out reconstruction operations in all its administrative buildings, attaches special importance to introduction of information-communication technologies. Though, prior to commissioning this economic structure did not meet requirements dictated by rapid social-economic development of the country, but now this balance improved as additional technical and power capacities ensuring perspective development of the country have been created. In general, complex measures undertaken in the energy management of Baku and neighbor settlements indicate the role that human factor plays in development of Azerbaijan and state building philosophy. 

First, the head of the state took part in the opening of a 110/35/6 kV substation in Narimanov district. The previous substation was commissioned in 1974 for supplying electricity to industrial enterprises in Narimanov district including Baku air conditioners plant. 

Considering perspective development a new substation meeting the most advanced standards was built to replace the old one. If the previous substation used to comprise an area over 16,000 square meters along with the open distribution plant, the area that a new enclosed substation covers is 7 times smaller. The building of this substation and other substations built over the past years attracts attention with its structural scheme and architecture, as well as colored a common image of the city. Improvement and greenery planting work was carried out at a large area around the substation. 

All-national leader Heydar Aliyev’s bas-relief was installed in the entry to the substation. A photo stand dedicated to complex measures undertaken by all-national leader Heydar Aliyev for the development of the energy system of the country including the transmission and distribution networks of the capital has been installed here as well. 

President Ilham Aliyev visited a control room of the substation. This modern center has been connected to the central dispatching service (SCADA system) of Bakielektrikshebeke by means of a fiber optic cable. The launch of this substation provided increasing of network capacity by 12%. The substation, a component part of the circular scheme between Khyrdalan and Mushfig substations, has also been connected to Nizami substation.  A new substation plays a basic role in creation of the second 110 kV circular supply scheme and raises efficiency of power supply to Heydar Aliyev oil refinery as well as to a number of other important industrial facilities. The substation may be connected to the network in case of automatic cutout and shortage of power. The mentioned power unit supplies electricity to Heydar Aliyev Avenue, Heydar Aliyev center, State Oil Fund, new administration building of the State Oil Company of Azerbaijan, the building of Gymnastics Federation which is under construction, an Intellectual Traffic Control center and many other important facilities. 

A direct connection was established with the substation #117 in Nasimi district and Sabunchu district Department for Power Supply and Sale after the launch of the substation. Opening of 35kV substations in Nasimi district (substation #117), Surakhany district (Hovsan substation), Binagadi district (#207), Bibiheybat settlement of Sabayil district (substations # 102 and 118), administrative buildings of Khazar, Surakhany, Sabunchu, Garadagh, Yasamal districts and the office of controlling department were opened by means of a video conference. 

Overhead electricity transmission lines Mushfig-Bayil, Khyrdalan-203 underwent an overall repair; 110 kV substations #227,203,215 underwent reconstruction; modern substations such as Liman 110/35/10 kV (2х50 MVA), Icheri Shekher 110/35/6 kV (2х40 MVA) and Yeni Bayil 110/20/6 kV (2х40 MVA) all entering the ring system were constructed. 

The operations on reconstruction of the electricity network of Baku city by using advanced equipment and new technologies, creation of new power centers during the daily expansion of urban planning are under constant control of the President of the country. All of these important operations performed on basis of investment programs as well as expansion of the material-technical base of the electricity network are supported by the head of the state. 

The joint stock company which resumed its operation in accordance with President’s order dated August 10, 2006 built 19 substations (110kV) and 46 substations (35 kV) and 228 transformer points within a short period time. 

400 more transformer points underwent an overhaul repair. Electricity transmission lines with total length up to 10,000km were laid. Repair and renewal operations as well as reconstruction work are currently underway at 110 kV and 35 kV substations. As the result of performed operations, the receiving and distribution capacity of the network increased by 70% compared to 2006. 

Besides, technical losses were reduced by 6% and comprised 10%. Network overload cases were eliminated as well. 

CE: Which modern technologies are used in the distribution network to provide more accurate metering of electricity consumption?

Baba Rzayev: Conduction of reconstruction work at distribution networks, especially in 0.4 kV networks by using insulated wires, application of modern technologies in power consumption measurement system, introduction of distant control SCADA system at facilities, use of advanced power protection and automation systems, enabled to minimize consumer’s emergency shutdowns that often used to be observed before Bakielektrikshebeke OJSC resumed its work. 

Considering the significance of measurement improvement work enabling to reduce the electricity loss in the network and establishment of accurate metering of electricity purchased from Azerenergy OJSC, measurement systems Elster Metronika that allow carrying out calculation at a distance were installed at substations where electricity is bought and calculated. 

Capital work carried out on modernization and improvement of the accounting system by means of advanced technologies enabled to change the system of collection of electricity fees. Now this indicator of OJSC totals over 93%. 

The work on improvement of the metering system by using modern technologies is continued even today. Sms smart meters are currently installed at Nasimi district of Baku. Owing to this system, each consumer will be able to control electricity consumption and regulate a budget when paying utility fees. Negative factors (like external interference in the work of the meter, etc) are impossible during electricity metering. 

Modernization work is carried out at 0.4 kV networks by using insulating wires in order to reduce technical losses in the network and prevent external interference. The metering system is modernized on basis of advanced technologies. 

CE: What success has OJSC achieved in e-control system?

Baba Rzayev: Emergency service 199 and a hot line operate within Bakielektrikshebeke OJSC’s system. Consumers can receive answers to all questions they are interested in 24 hours a day and witness operative solution of technical issues concerning power supply. The mentioned services have been equipped with all necessary communication facilities, technical equipment and modern technologies. Their employees attend special trainings. 

Arrangement of work of operational services and centralized gathering of all information enables to ensure a timely transmission of necessary information to structural subdivisions. It allows ensuring rhythmic operation of the network and non-break power supply to consumers. 

In view of Azerbaijan President’s order dated May 23, 2011 “On arrangement of certain activities by state bodies for provision e-services”, Bakielektrikshebeke OJSC opened new pages on its website that enable to obtain information about services provided to consumers, as well as pages “electronic appeal”, “hot line”, “reception days”, “electronic payment of electricity fees”, “debt receipt”, “contact information of heads of structural subdivisions of OJSC” etc. 

Appeals fixed at these pages are answered within a short period of time after thorough consideration. Such electronic services as connection to the network, replacement of meters, reception of specification, consideration of debt issues and others are planned to be introduced to improve the service level. 

The practice when electricity fees were collected by controllers representing the OJSC was stopped in Baku and administrative districts after Bakielektrikshebeke OJSC resumed its work. Customer service centers were created in order to eliminate cases of delayed payment of electricity fees. These centers operate 7 days a week and have been computerized and receive consumers’ payments online. 

CE: What importance does the OJSC attach to social issues?

Baba Rzayev: If there used to be two administrative buildings at areas before, today there are new administrative buildings (engaged in power supply and sale) built and operating in Sabayil, Yasamal, Binagadi, Nasimi, Khazar, Sabunchu, Garadagh districts as well as service points in Zira, Bina, Keshla, Zabrat, Buzovna and Pirallakhi settlements. Central office of Bakuelektrikshebeke OJSC was built in accordance with the architectural style of the city and supplied with a central electronic control system. The five-floor administrative building has been built and passed to OJSC’s employees as the result of reconstruction of substation #117. 

Along with it, a modern warehouse designed for storage of spare parts, inventory holdings was built over the past period. A building equipped with modern technologies meant for testing and repairing electrical meters was built. Machines and mechanisms of OJSC were renewed. 

OJSC implements complex social programs in accordance with the requirements of the signed collective agreement. A social commission was created for solution of social issues of employees. The commission considers social issues, lends material aid to newly-married workers, organize holiday and jubilee events, as well as lend a material aid to employees who lost their family members. The commission raises these issues before the management and trade union organizations for improvement of living conditions of young families. Events for awarding veterans of war and labor are arranged. Distinguished workers are travelling in beautiful parts of the republic during summer vacation. Contests on different types of sports are held. High level food services are provided to OJSC workers with a 50% discount. 

A 35/6 kV substation (2х25 МVA) was built at the Flag Square for power supply during the arranged outstanding song contest. 35 kV cables were laid between Yeni Bayil, Icheri Shekher and Flag Square substations as well as between Daghustu Park and Icheri Shekher. Hotels, offices, trading and other facilities built in the downtown and area of the National Park were supplied with non break electricity from Icheri Shekher and Liman substations due to the conduction of the song contest. Apart from this, additional 10kV cables were laid for improvement of power supply to neighboring facilities during the song contest. Transformers of the National Park and Icheri Shekher (Inner City) as well as substations #117 35/6 kV and # 102 20/6 kV underwent reconstruction.

CE: What measures does OJSC undertake for improving of distribution network operation?

Baba Rzayev: Nowadays, two 35/6 kV substations (2x25 MVA) are reconstructed in Shikhovo dwelling settlement for electricity supply to hotels and resort centers located along the sea shore. 20kV substations #107, 108, 109 and 118 also underwent reconstruction at the 20th residential area. 

Reconstruction work at capacities located in other parts of the city, at MKZ 110 kV and #96, 97 and 207 35 kV substations as well as works on laying of electricity transmission lines between these substations are on verge of completion. 

All mentioned operations were carried out owing to continued focus and care of the President of the Republic of Azerbaijan Ilham Aliyev. The work aimed at modernization and reconstruction of distribution networks in accordance with international standards over the past 5 years characterizes the scope of work performed by Bakielektrikshebeke OJSC. Continuation of this work is an important state guarantee for high-quality power supply to consumers.