BAKU, Azerbaijan, December 23. Azerbaijan needs to invest from $10.1 billion to $30.1 billion in its energy system by 2030, Trend reports via the CAREC Energy Outlook 2030, prepared by the experts of the Asian Development Bank (ADB).
Depending on several energy transition scenarios, this amount is needed to be disbursed across the generation, transmission and distribution (T&D), and consumption sectors.
"Ambitious renewable energy targets (1.5 GW of new installed capacity by 2030) imply that the power generation category accounts for at least two-thirds of total investment needs," the ADB's report noted.
As for each scenario, in the business-as-usual (BAU), the largest investments are needed for natural gas power generation projects, while the Government Commitments and Green Growth scenarios, in line with priority technologies, imply higher investment needs in renewable energy projects.
"Overall, the investments in renewable sources of energy in 2030 are estimated at $3.8 - $17 billion, highlighting large differences in the expansion level of renewables across the scenarios," the report added.
Thus, depending on the scenario, investment needs of Azerbaijan are dominated by wind, accounting for about 58-64 percent of total renewable energy investments, followed by solar, accounting for 28-32 percent.
At the same time, electricity generation is expected to require the most investments across all scenarios, accounting for 66-77 percent of the total value ($7.8 - $19.8 billion, depending on the scenario).
"This category is followed by the implementation of energy efficiency measures on the consumption side in the BAU scenario, constituting around 14 percent of the total investment needs in 2030. Under the other two scenarios, generation is followed by T&D, comprising approximately 19 percent of total investment needs under the Government Commitments scenario, and 22 percent under the Green Growth scenario, illustrating larger infrastructure modernization efforts (including the modernization and expansion of the natural gas and electricity networks, the installation of metering equipment, and remote monitoring systems)," the report noted.