NEWS

Green energy or fossils – win-win cooperation between Azerbaijan, Europe

JULY 22, 2023

Azerbaijan is confidently moving towards becoming an important supplier of green energy following the successful implementation of major projects of international importance in the traditional energy sector, Trend reports.

The implementation of large-scale projects in Azerbaijan, including the liberated territories, such as the creation of a green energy zone in Karabakh and Eastern Zangazur regions, will allow the country to become a producer and exporter of alternative energy.

Azerbaijan can become a regional center for renewable energy. Thus, according to the analysis of the Energy Sector Management Assistance Program of the World Bank Group, the technical potential of Azerbaijan's offshore wind potential is estimated at 157 GW, which is a huge figure compared to the current total installed capacity of about 8 GW.

The development of offshore wind power will help improve competition in the energy sector, strengthen basic infrastructure and help deal with climate change. Azerbaijan can use its infrastructure, equipment, knowledge and its workforce in the offshore wind energy development.

The Offshore Wind Power Roadmap published by the Azerbaijani Ministry of Energy, the World Bank and IFC shows that Azerbaijan has the potential to install offshore wind farms with a total installed capacity of 7 GW by 2040. This can provide over 69,000 person-years of full employment and up to $7 billion in local gross value added.

Besides, a study conducted by the European Bank for Reconstruction and Development (EBRD) confirmed the feasibility of producing green hydrogen in Azerbaijan.

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.

"Foreign companies have already started several investment projects in renewables," President of the Republic of Azerbaijan Ilham Aliyev said at the opening ceremony of the Forum Shusha Global Media Forum on “New Media in the Era of the 4th Industrial Revolution”.

"The first 240-megawatt solar power station is to be inaugurated by the end of this year. But this is only the first. We already signed MoUs and contracts at the level of 10 gigawatts. So, if half of these MoUs is materialized, that will be more than enough to supply big geography in Europe. At the same time, it will save us a lot of natural gas, which we use now to generate electricity and that natural gas will go also to the international market. So, it's a win-win situation," the head of state noted.

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 Caucasus region 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.

Azerbaijan is actively cooperating with international financial institutions in the development of alternative energy. In this regard, it should be noted that the current strategy of the European Bank for Reconstruction and Development (EBRD) is aimed at assisting Azerbaijan in diversifying the economy, as well as in further expanding access to financial instruments and supporting the green economy.

For Ganja, Azerbaijan and the EBRD signed two agreements that aim to support the city in solid waste management as well as creating energy efficiency through the country's street lighting project.

Moreover, the EBRD co-financed the first project to build a large-scale solar power plant in Azerbaijan's Garadagh to support the countrywide decarbonization program.

In the corporate sector, the bank financed the construction of an energy-efficient cold store in Alat settlement and the green expansion of an agricultural producer in Salyan city.

The European Investment Bank (EIB) is also ready to consider financing projects in the field of renewable energy and energy efficiency in Azerbaijan. Along with activities to combat climate change, which are a top priority for the bank, EIB Global company focuses on a variety of priority areas, including innovation, digital and human capital, small and medium businesses, sustainable cities and regions, and sustainable energy and natural resources.

In addition, the State Oil Company of Azerbaijan (SOCAR) and Japan Bank for International Cooperation (JBIC) agreed to strengthen cooperation through the exchange of information on the implementation of low-carbon technologies, including, but not limited to, carbon capture and storage (CCS) and carbon dioxide capture, use and storage (CCUS) technologies, as well as on projects related to hydrogen, and ammonia.

Thus, Azerbaijan continues its active energy diplomacy and successfully implements mega-projects in the field of energy.

With the implementation of a number of important agreements with foreign partners, Azerbaijan will take a key position in the supply of green electricity to the European market. This not only contributes to the diversification of energy sources in the region, but also strengthens economic and energy partnerships with European countries.

With the constant development and expansion of renewable energy production capacities, Azerbaijan aims to increase the share of renewable sources in electricity generation to 30 percent by 2030.

This shows the serious intention of the country to make a significant contribution to sustainable and clean energy, which will further reduce carbon emissions and more sustainable development in the future.

With a priority on the development of alternative energy sources such as wind power plants and renewable energy from hydrogen, Azerbaijan is building energy transportation infrastructures that will provide sustainable and reliable supplies to countries in the region and beyond.

This represents a significant transformation of the energy map of Eurasia, opening up new prospects for cooperation and development in the field of energy.

https://en.trend.az/business/energy/3776064.html