Baku, Azerbaijan, March 4
By Emin Aliyev Trend:
Azerbaijan is a country where energy efficient technologies have very low market penetration and there exists therefore a significant potential for development, according to the draft strategy of the European Bank for Reconstruction and Development (EBRD) on its activity in the country.
The strategy is designed for three years and covers the period from 2014 to 2017.
"The regulatory framework may be strengthened by enacting and enforcing laws that promote renewable energy projects," the document said. Furthermore, the EBRD analytics considers that the consolidation of existing, disparate laws that affect renewable energy may be required.
The total cost of major projects implemented in Azerbaijan with government participation in the field of alternative and renewable energy already implemented, make up 657.5 million euro, according to the State Agency for Alternative and Renewable Energy of Azerbaijan.
The most capital intensive project with state participation is the creation of a farm to generate wind energy in the Caspian Sea with a total capacity of 100 megawatts and costing 250 million euros.
The share of public participation in this project will be from 10 to 25 percent and the remaining part will be financed at the expense of attracting funds from private investors.
Another major project planned for implementation in Azerbaijan in the sphere of alternative energy is the creation of the Perekishkyul farm on wind power generation with a total capacity of 110 megawatts. It is planned to involve credit from the German Development Bank (KfW) for the implementation of the project at a cost of 165 million euros and the public share will be within a 10 to 25 percent stake.
Azerbaijan has great potential for the development of alternative energy. In particular, the potential of wind energy in the country makes up 4500 megawatts, biomass - 1500 megawatts, and geothermal energy - 800 MW, as well as small hydro power plants - 350 MW. The share of alternative energy sources in total consumption is expected to reach 20 percent in Azerbaijan by 2020.
From 1991 until the end of November, 2013, the EBRD has allocated 1,577 million euro for the financing of 138 projects. The total value of these projects was 6.6 billion euro. Some 35 percent of the bank's investments were allocated to the energy sector, 33 per cent - financial sector, 21 per cent - infrastructure, 11 per cent - corporate sector.
Translated by S.I.