BAKU, Azerbaijan, Feb.3
By Fidan Babayeva – Trend:
In order to improve the efficiency of Azerbaijan’s electricity system in the near future, it is planned to significantly increase private foreign investments in alternative energy, Acting Director of the State Agency for Alternative and Renewable Energy Sources of Azerbaijan, Tabriz Ammayev told Trend.
According to Ammayev, by the decree of President of Azerbaijan Ilham Aliyev dated May 29, 2019 on accelerating reforms in the energy sector of Azerbaijan, the Ministry of Energy was instructed to prepare proposals on attracting private investment in this area in order to increase the efficiency of the country's electricity system.
International experience shows that attracting private investment to increase efficiency in the electric power system can be achieved by creating a competitive environment after the transition to liberal market relations in this area, the acting director emphasized.
He noted that private investments in the electricity system will be attracted through the creation of an appropriate legal and regulatory environment, as well as through the construction of new power plants using models of privatization and public-private partnership of power plants that are not strategically important from the point of view of energy security.
Touching upon the topic of cooperation with foreign organizations, Ammayev stressed that with the signing of an agreement on a 240-megawatt wind power plant, cooperation between Azerbaijan and the Saudi Arabia is entering a new stage.
“Pilot projects for the construction of a wind power plant with a capacity of 240 megawatts have been implemented with the ACWA Power company until now. Currently, Azerbaijan’s Ministry of Energy cooperates with 10 companies in the development of alternative energy and we don’t intend to stop there,” Ammayev added.
The use of renewable energy sources was identified by the Azerbaijani president as one of the priority areas for the development of the energy industry. So, the focus is on the implementation of pilot projects for the construction of a 240 MW wind power plant and a 200 MW solar power plant in accordance with agreements signed with ACWA Power and Masdar (OJSC) on January 9, 2021.
In order to fulfill the relevant order of the president of Azerbaijan, seven working groups are functioning, consisting of representatives of the ministries of energy, economy, finance, emergency situations, environment, and natural resources, justice, as well as the Committee for Urban Planning and Architecture, State Property Service, State Tax services, Central Bank, Azerenergy and Azerishig OJSCs.
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