BAKU, Azerbaijan, June 13. The third round of the high-level energy powwow between Azerbaijan and the European Union (EU) to forge a strategic energy partnership took place in Brussels, Belgium, Trend reports.
The meeting, chaired by Minister of Energy Parviz Shahbazov and EU Commissioner for Energy and Housing Dan Jørgensen, was attended by representatives from the Ministry of Energy, SOCAR, the State Agency for Renewable Energy Sources (AREA), the European Commission’s Directorate-General for Energy (DG ENER), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), as well as the company CESI.
The talks were all about getting on the same page regarding energy partnership priorities, with a spotlight on the Southern Gas Corridor and the shift towards energy transition. The prospects of Azerbaijan’s gas production and exports, the current state of EU gas supply, and opportunities to finance gas transport infrastructure within the framework of EBRD’s energy sector strategy were reviewed.
It was noted that last year, gas supplies from Azerbaijan to Europe increased by 9.5 percent, reaching 13 billion cubic meters, and this year, half of the exports are intended for Europe.
It was also noted that by 2030, based on existing agreements, an additional roughly 8 billion cubic meters of gas production, along with about 1.5 billion cubic meters of gas liberated through around 2.7 GW of solar and wind power plants, are on the horizon. Transporting these volumes and significantly increasing additional supplies on time requires expansion of pipelines, investments in field development projects, long-term commercial contracts, and mobilization of financial instruments.
The development of renewable energy capacities in Azerbaijan, the implementation of the Caspian-Black Sea-Europe Green Energy Corridor, and other "green energy" interconnector projects were also discussed. The green energy export projects were evaluated within the frameworks of the Energy Trans-European Networks Regulation and the Global Gateway Strategy, as well as existing financing instruments of the EIB and EBRD.
It was stated that production of green energy and its supply to Europe through various routes and interconnectors are among the main strategic priorities of Azerbaijan’s modern energy policy, defined by President of the Republic of Azerbaijan Ilham Aliyev. These projects are significant not only for diversifying energy sources for Europe but also from the perspective of geostrategic interests related to Central Asia and the Middle Corridor.
"In the context of current challenges, it is time to demonstrate a pragmatic approach to increasing gas supplies from Azerbaijan as a reliable partner and to take concrete and decisive steps to provide financial and political support for the development of relevant regional energy infrastructures. At the same time, granting the status of Project of Mutual Interest (PMI) to the Caspian-Black Sea-Europe Green Energy Corridor and including it in the 10-Year Network Development Plan (TYNDP) is critically important for the successful development of this strategic initiative. We call on the relevant EU structures to strengthen necessary support in this direction and to advance this initiative as a priority project," Shahbazov said.
Jørgensen noted that this dialogue reflects the close cooperation in the energy sector and that such dialogue is conducted with very few countries.
"We highly appreciate Azerbaijan’s efforts in this regard. Achieving energy security requires risk mitigation. Energy infrastructure is fundamental to advancing our energy transition. We are ready to explore opportunities to increase energy integration between the South Caucasus region and the European region. This can also be implemented through guarantees and mobilization of blended finance instruments," he added.
During the discussions, there was also a back-and-forth on the steps taken to boost energy efficiency and cut down on methane emissions.
The energy dialogue between Azerbaijan and the EU has been ongoing since 2022.
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