Azerbaijan invests over $120 million in renewable energy - State agency

Business Materials 23 September 2014 18:50 (UTC +04:00)

Baku, Azerbaijan, Sept.23

By Emil Ismayilov - Trend:

Over 100 million AZN has been invested in the development of alternative and renewable energy sources in Azerbaijan from public funds so far, the head of the State Agency for Alternative and Renewable Energy of Azerbaijan Akim Badalov told reporters Sept.23 within the framework of the regular business forum organized by Caspian European Club (CEIBC).

He added that the country has created favorable conditions for the development of this new direction for Azerbaijan: companies operating in this sector were exempted from customs duties and taxes.

Devices used for energy efficiency and alternative and renewable energy sources application as well as their spare parts and components for their production are exempt from the payment of customs duties and VAT on imports for 10 years by decision of the Cabinet of Ministers from April 25, 2014.

Preferential tax regime entered into force after 30 days from the date of signing of the solution. Exemptions will be granted only if the importer has voucher and license (special permit) to operate in the field of alternative energy and energy efficiency issued by the State Agency for Alternative and Renewable Energy.

Benefits involve the nomenclature, including, in particular, water turbines up to 10 megawatts, capacitors for geothermal power plants, generators for solar stations, probes and apparatus for heat pumps.

Currently, the share of alternative energy sources in Azerbaijan is less than 1 percent, and accounts for small hydro power plants. Today the European and other developed countries agreed on annual raising of the share of alternative energy up to 10-15 percent of total electricity production.

It is planned to build up to 100 objects for alternative energy for 5 years in Azerbaijan, according to preliminary research.

The official exchange rate as of September 23 is 0, 7844 AZN / USD.