Azerbaijan, Equinor to realize projects on renewables
By Leman Mammadova
Hydrocarbons, which are the traditional source of energy used by the world for many years, are gradually being run out and, thus, make the use of alternative and renewable energy sources urgent.
Aiming to lessen its dependency on oil, Azerbaijan implements a number of measures for further development of alternative energy sector.
Ministry of Energy held a meeting with a delegation led by Eirik Waerness, Senior Vice-President and Chief Economist of Norwegian Equinor.
Deputy Energy Minister Samir Valiyev appreciated Equinor's long-term activity in Azerbaijan as one of the first foreign oil companies invested in Azerbaijan, the Ministry told AZERTAC.
He also noted that the implementation of joint projects together with Equinor in the development of the renewable energy sector is also one of the priorities, as well as cooperation in Karabakh, Ashrafi, Dan Ulduzu, Aypara fields.
Later, the presentation was made by Senior Vice-President of Equinor E.Waerness on “Energy Perspectives 2018".
It was stated that the future of energy is to reform oil and gas industry, to achieve efficient energy supply to reduce carbon emissions, to ensure cheap, reliable, sustainable energy use for all.
Data on energy consumption prediction by 2050 prepared on various scenarios was highlighted. In addition, the share of oil and gas resources and renewable energy sources in the future energy consumption, efficient use of energy resources, forecasted figures on the impact of new technologies on waste dumping to the environment were analyzed.
Comparisons have been made on demand for electricity, oil and gas in housing, transport, industry and other sectors in 2015-2050. Additionally, forecasts on the use of solar and wind energy have been reviewed due to the economic growth and increasing demand for energy. It was stated that in the future the demand for oil will be formed by the transport sector, and the demand for gas will be generated by electricity production. Expected investments in oil and gas sector in all scenarios will be less than renewable energy sources.
It should be reminded that Norway's Statoil oil and gas group changed its name to Equinor on May 16, 2018.
Equinor is planning to invest more in alternative energy projects in the future, and it is expected that by 2030, up to 15 percent of investments will be directed to renewable energy projects.
The Energy Ministry is negotiating with BP and TOTAL on alternative energy cooperation as well.
Negotiations with BP have already resulted in signing a Memorandum of Understanding to jointly explore potential opportunities for the development of renewable energy in Azerbaijan, as of December 2018.
The new draft law on alternative energy sources in Azerbaijan will be ready by May 2019.
The Norwegian DNV GL will help create a support system and a legal framework in Azerbaijan's alternative energy sector. Recently, the company won the tender of the Ministry of Energy and was selected as a consulting company to develop a bill and other legislation.
The favorable geographic location and climatic conditions allow the widespread use of environmentally friendly alternative energy sources in Azerbaijan.
The capacity of the energy system of Azerbaijan is more than 6,000 megawatts. At the same time, according to experts, the potential of renewable energy sources in the country is more than 25,300 megawatts.
At present, 18 percent of electricity production in Azerbaijan fell on alternative energy sources, in which hydroelectric power stations hold main share, although most of the country's potential in this area falls on solar energy (estimated at 5,000 megawatts).
Some 4,500 megawatts accounts for wind power, 1,500 megawatts -- for biomass, 800 megawatts -- for geothermal energy, and the remaining 350 megawatts -- for the small hydro power plants (HPP).
As much as 23.2 billion kWh of electricity was produced in Azerbaijan in 2018, thermal power plants produced electricity amounted to 20,534 kWh, hydro power to 1,737 kWh, solar energy to 38.3 kWh, wind power to 57,5 kWh.
There are plans to implement a number of projects totaling $2.3 billion in alternative energy.
The projects include a plant for production of biofuels (pellet fuels) in the Sabirabad district, construction of wind power plants in the Pirallahi district, an agro-energy residential complex in the Samukh district and others.
Construction of two wind power farms worth $800 million and $408.9 million in the Pirallahi district, as well as a wind power farm worth $377.7 million in the Khizi district are the biggest projects planned for implementation.The Azerbaijani government is planning to increase the share of alternative energy by 30 percent by 2030 in total power generation.
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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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