Implementation of measures necessary to carry out reforms in Azerbaijan’s energy sector continues in accordance with the order of the head of state.
- What was last year like from the point of view of implementing the tasks set for Azerbaijan’s energy sector?
- Last year, from the point of view of developing the energy sector and projects in this area, was quite effective for Azerbaijan. In particular, implementation of long-term strategy for the development of the energy sector of the Republic of Azerbaijan was started.
The president was presented with proposals on attracting private investment to this sector, encouraging the use of renewable energy sources, creating a favorable investment environment and supporting private entrepreneurship.
The proposals to improve the efficiency of the heat supply system in the country were also prepared and submitted to the head of state in 2019. Draft laws 'On Power Industry', 'On the use of renewable energy sources in electricity generation', as well as 'On regulation in the field of energy and utilities' were developed and submitted.
The implementation of measures to prepare new draft laws of Azerbaijan "On energy" and "On gas supply" began in 2019. After the adoption of proposals and bills, the execution process and a new stage of development in the energy sector will begin.
- What are the forecasts for the use of alternative energy sources in Azerbaijan in 2020?
-Azerbaijan has specific goals and a policy decision on increasing the share of renewable energy sources in electricity production. Due to renewable energy sources in the Strategic Road Map on the development of public utilities (electric and thermal energy, water and gas) in Azerbaijan, approved by the relevant decree of the Azerbaijani president in 2016, the creation of a new generating capacity of 420 megawatts is envisaged.
For this purpose, cooperation documents were signed with nine international energy companies, discussions were held, and proposals for the implementation of projects using wind and solar energy were received. Foreign financial partners are interested in investing in wind energy projects and cooperating with Azerbaijan in this field. At the initial stage, it is planned to implement pilot projects for 440 megawatts.
Under the decree of Azerbaijani president on measures for implementation of pilot projects in the use of renewable energy sources dated December 5, 2019, a commission was created, and seven working groups were formed to carry out the necessary activities.
Proposals on the allocation of land for pilot projects, the issuance of state guarantees to investors, the connection of power plants for projects to electric networks, and the strengthening of the network will be made within four months. Along with pilot projects, after the adoption of the law, an auction of projects in selected territories is planned.
With the support of the EBRD, an auction preparation project is being implemented, within the framework of which work is underway to form a regulatory legal framework that manages auctions.
I believe that 2020 will be the beginning of a new stage in the development of renewable energy in Azerbaijan.