SGC has broad prospects

Caspian Energy (CE): Azerbaijan has favorable natural conditions and geographical position for developing the utilization of its various energy sources. Currently, when the world is taking serious steps towards moving to a low-carbon energy system, what are plans in Azerbaijan regarding this area?  

Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan: Endowed with rich oil and gas reserves both onshore and offshore, as well as with a high potential for renewable energy, Azerbaijan is one of the few countries in the world which has ensured its energy security in a fully sustainable manner. The implementation of the energy security strategy set by the National Leader Heydar Aliyev and which is still ongoing successfully under the leadership of President Ilham Aliyev, has resulted in significant achievements regarding the reliable supply of the country’s economy and population with energy resources. In the meantime, the role and importance of Azerbaijan in contributing to the regional and European energy security is growing day by day. 

Energy diversification and environmental requirements in energy supply are conside­red as the major principles of energy security. Expanded use of renewable energy sources in our country has been set as a priority by the President of the Republic of Azerbaijan Mr. Ilham Aliyev, and the target is to increase the share of renewable energy in the installed power generation capacity to 30% by 2030. At the same time, the Order of the President of the Republic of Azerbaijan “Azerbaijan 2030: National Priorities for Socio-Economic Development”, has set clean environment and green growth as one of the five national priorities in the socio-economic development of Azerbaijan. This proves that one of the main goals of the energy security policy implemented in our country is the enhanced use of renewables.

The potential of renewable energy sources of Azerbaijan is high enough to reach the established target. The potential of economically viable and technically feasible renewable energy sources in the country is estimated at 27,000 MW, including 3,000 MW for wind energy and 23,000 MW for solar. Because of this, despite the fact that Azerbaijan is rich in traditional energy resources and is a net exporter of such resources, the use of renewables in Azerbaijan is under the constant spotlight. 

One of the key points for the development of renewable energy is the adoption of a relevant law. Currently, the draft law “On the use of renewable energy sources in electricity production” is under consideration as the first full-fledged legal document on the regulation of the renewables in our country. 

Another important factor is the attraction of private investment into this sector. Currently, relevant agreements have been signed with ACWA Power (the Kingdom of Saudi Arabia) for the construction of a 240 MW wind power plant and negotiations are underway on the construction of a 230 MW solar power plant with Masdar (the United Arab Emirates). The implementation of these pilot projects is an important step towards attracting private investment, which serves to diversify our country’s energy sources and improve the efficiency of the power system.