Draft legal framework for alternative energy in Azerbaijan may be submitted during 1H2019

Oil&Gas Materials 19 February 2019 16:21 (UTC +04:00)

Baku, Azerbaijan, Feb. 19

By Sara Israfilbayova – Trend:

A draft legal framework in the field of alternative energy will be submitted to the Ministry of Energy of Azerbaijan for consideration by May of this year, Alasgar Hasanov, Director of the Energy Efficiency and Ecology Department of the Ministry of Energy of Azerbaijan, told Trend.

According to him, a tender was held and an agreement was concluded with an international consulting company for drafting a relevant document.

Hasanov further stated that international experience shows that attracting private investment in this area can ensure more efficient use of renewable energy sources and ensure rapid development of the field.

"In order to attract private investment for the use of new generating capacities on renewable energy sources, it is necessary to form a legislative framework covering the following issues: government policy and regulation, support regimes for the usage of renewable energy sources, guarantees for connection to the network of production capacity and the purchase of electricity produced, technical electricity management regulations, contractual base, land issues, licenses and permits," the director said.

Hasanov noted that forming a legislative base is considered one of the most important factors for eliminating the problems and obstacles that arise when attracting private investments, and stated that the Ministry of Energy has begun preparing documents covering an increase in the share of alternative energy in total generating capacity, improving the regulatory legal framework for attracting private investment in this area, as well as using preferential tariffs and other incentives.

"The law will include main objectives and principles of state policy in the relevant field, as well as reflect the intention and mechanism to support the use of renewable energy sources," Hasanov said.

Hasanov noted that the law will reflect the guarantees offered to investors, as well as guarantees related to the connection of stations generating power from renewable sources to the power grid, and the transfer and purchase of energy produced.

He also said that, despite the fact that Azerbaijan is rich in energy resources and recognized worldwide as an exporter of energy resources, the use of energy produced from renewable sources has always been the focus of attention.

Consistent steps are currently being taken in Azerbaijan to develop alternative energy.

To this end, negotiations are being held with foreign companies and investors, including companies from China, the UAE, the US and the EU.


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