BAKU, Azerbaijan, Feb. 25
By Nargiz Ismayilova - Trend:
The mechanism for supporting active consumers in Azerbaijan can be applied not only by the population, but also by small and medium-sized enterprises (SMEs), Director of the Energy Efficiency and Ecology Department of Azerbaijan’s Energy Ministry Alasgar Hasanov told Trend.
“By order of the head of state dated May 29, 2019 No. 1209 “On accelerating reforms in Azerbaijan’s energy sector”, stimulation of using renewable energy sources, creating favorable investment environment in this area and supporting private entrepreneurship was launched,” Hasanov noted. “Incentive mechanisms for the aforementioned goals were proposed in legislative drafts prepared and presented by the ministry.”
The director of the ministry’s department added that along with large-scale projects, it is planned to introduce a mechanism to support active consumers in order to attract their interest to using renewable energy sources for their own consumption.
“The main goal here is to ensure that consumers are connected to the renewable energy network by using a two-way meter and applying a mechanism to supply or receive energy in the network depending on demand,” Hasanov said.
The director noted that this mechanism is widely used throughout the world.
“In some cases, one type of energy is simply replaced to another type depending on the reporting period, in other cases, consumers sell energy back to the network at a guaranteed tariff,” said Hasanov. “In Azerbaijan, during a certain reporting period, replacement of energy is envisaged, and at the end of the reporting period - payment of the difference for energy received from the network according to the retail tariff, and for energy supplied to the network – according to the wholesale tariff.”
“The mechanism is aimed at eliminating the need to install devices and equipment that require additional storage costs,” the director added. “These costs are quite high and are considered to be barriers to the use of renewable energy sources by consumers in Azerbaijan.”