...

Weekly review of Azerbaijan's energy market

Economy Materials 22 October 2022 14:41 (UTC +04:00)
Weekly review of Azerbaijan's energy market
Maryana Ahmadova
Maryana Ahmadova
Read more

BAKU, Azerbaijan, October 22. The current week was marked by the arrival of Costas Screcas, Minister of Environment and Energy of Greece, in Azerbaijan, and the important statements made during his visit, Trend reports.

Thus, during his meeting with Minister of Energy of Azerbaijan Parviz Shahbazov, Screcas pointed out Greece’s interest in expanding Southern Gas Corridor (SGC), and the importance this project carries for the country in terms of supplies diversification.

Commenting on the minister’s visit, Greek Ambassador to Azerbaijan Nikolaos Piperigkos noted that under the MoU between Azerbaijan and the EU on doubling gas exports to Europe by 2027, Greece fully supports the idea of expanding the SGC, and the overall energy cooperation enhanced with Azerbaijan.

Also, important statements were made regarding the increase of Azerbaijani gas supplies to Europe. Thus, according to Romanian Prime Minister Nicolae-Ionel Chuke, Romania together with Azerbaijan will analyze the possibility of launching a joint project on liquefied natural gas (LNG) in the Black Sea.

The talks resulted in the signing of an MoU between Romania's Romgaz and the State Oil Company of the Azerbaijan Republic (SOCAR) to prepare a feasibility study for the construction of a liquefied natural gas (LNG) terminal in the Black Sea.

"Implementation will start with a feasibility study financed jointly by both parties. We will be able to supplement and complement the gas supply corridors from the Caspian Sea basin to Europe", Romanian PM said.

The European Commission has also made an important statement regarding Albania’s connection to the Trans-Adriatic Pipeline (TAP). Thus, according to the Commission, the development and connection of the LNG terminal in Albania’s Vlar to regional gas pipelines, such as the TAP and the Ionic-Adriatic Pipeline, will allow the country to get access to Azerbaijani gas as well, which will increase the energy security of the region.

Meanwhile, according to the published statistics, Azerbaijan’s revenue from gas exports from January through September 2022 increased 4.1 times to $12.1 billion. The country increased its exports of natural gas by 10.9 percent year-on-year to 16.5 billion cubic meters.

Moreover, Azerbaijan’s revenues from exports of crude oil and petroleum products grew by 60.1 percent year-on-year to $14.8 billion.

Some important statements published by Minister of Energy of Azerbaijan Parviz Shahbazov in an article in "Respublika" newspaper also highlighted this week. Thus, according to the Minister, the total capacity of electricity generation in Azerbaijan reached 7,953.9 MW, which is 4.9 percent more year-on-year. The minister also noted that by the end of 2022 and in the coming years, Azerbaijan’s electricity production is expected to surge, and will be mainly based on renewable energy sources.

In Karabakh and Zangezur, the potential of wind, solar and hydropower energy generation exceeds 10 gigawatts. As part of the aim to increase the share of renewables in the installed capacity of electricity to 24 percent in 2026, and to 30 percent in 2030, from January through March this year the construction of several wind and solar power plants was launched with the involvement of foreign investors, the minister said.

In this regard, the Minister also commented on the construction of the "Shafaq" solar power plant with a capacity of 240 MW by bp in Jabrayil. Thus, according to Shahbazov, the power plant will be commissioned in 2024.

Regarding other renewable energy projects in Azerbaijan, the minister pointed out the construction of a 100 kW floating solar power plant on Lake Boyukshor. The construction of the facility is about to come to an end, and also the possibility of installing a 50 MW floating photovoltaic station on Lake Boyukshor and implementing large-scale projects on water bodies in the future is being considered.

According to Shahbazov, in addition to traditional markets, Azerbaijan considers three export routes of green energy to Europe.

"The first is the Azerbaijan-Turkey-Europe energy corridor through Nakhchivan, the second - through Georgia and Turkey, and the third - the project for transportation of electricity from Azerbaijan along the bottom of the Black Sea, which will unite Azerbaijan, Georgia, Romania and Hungary", - said the minister.

Shahbazov also commented on the latter, saying that, as part of the initiative, it is planned to lay a 1,195-kilometer power transmission line with a capacity of 1,000 MW between Georgia and Romania and install a digital connecting cable.

"To this end, it is planned to prepare a feasibility study for the project by the end of 2023 with the support of the World Bank. At present, the issue of creating a quadripartite format of cooperation between Azerbaijan, Georgia, Romania and Hungary is being discussed," he said.

---

Follow the author on Twitter: @mariiiakhm

Tags:
Latest

Latest