Baku, Azerbaijan, March 4
By Emin Aliyev - Trend:
Improving energy efficiency remains a major challenge in Azerbaijan which is rich in energy resources, according to the European Bank for Reconstruction and Development (EBRD)'s draft strategy for Azerbaijan.
The strategy is designed for three years covering a period between 2014 and 2017.
"The economy of Azerbaijan and in particular the residential sector is one of the most energy intensive in the region. The amount of energy it consumes per U.S. dollar of gross domestic product (GDP) adjusted to purchasing power parity is almost 1.2 times more than the 27 EU countries average. Companies with energy efficiency action plans have implemented more energy efficiency projects and invested more in them than have those without organisational arrangements in place," EBRD said.
However, these early achievements still leave room for significant improvement, both in terms of regulatory support for energy efficiency and in terms of real efficiencies gained by Azerbaijani industry, according to the bank.
In March 2013, EBRD signed the first energy efficiency loan with an Azerbaijani bank, AccessBank under the Caucasus Energy Efficiency Programme. A loan of $4.2 million was allocated under the agreement. It will be directed towards reconstruction of the bank's head office with a total area of 9840 square metres. EBRD's loan will cover 30 percent of the project cost and the remainder will be paid by Accessbank itself.
Following the reconstruction, AccessBank will provide its employees at head office with the first 'green offices' in Azerbaijan. They have low power consumption system which saves energy by 42 percent more than previous systems.
The loan is a part of the EBRD's Caucasus Energy Efficiency Programme (CEEP), launched in July 2007. Under the programme loans are provided to local partner banks for investment in energy efficiency.
Currently the Azerbaijani Energy Ministry is preparing a National Action Plan for Energy Efficiency which will cover the years 2014-2020.
The ministry's representatives believe that up to 40 percent of energy consumed in Azerbaijan can be saved, that is the energy efficiency in the country is still unsatisfactory.
As of late November 2013, EBRD has signed a total of 138 projects with a cumulative investment value of 1,577 million euros since initiating its operations in Azerbaijan in 1991.
The total value of these projects was 6.6 billion euros. Some 35 percent of the bank's cumulative investments were made in the energy sector, 33 percent in the financial institutions sector, 21 percent in the infrastructure sector and 11 percent in the corporate sector.
Translated by E.A.
Edited by S.M.