Azerbaijan's Energy Ministry talks on private investments in electric power industry

Oil&Gas Materials 6 February 2021 22:20 (UTC +04:00)
Azerbaijan's Energy Ministry talks on private investments in electric power industry

BAKU, Azerbaijan, Feb.6

By Fidan Babayeva - Trend:

Azerbaijan continues negotiations with foreign companies on the project of the construction of a new modern gas turbine power plant with a capacity of up to 550 megawatts through private investments, Trend reports referring to the report of the Ministry of Energy on the results of 2020.

So, the ministry prepared a document containing preliminary technical indicators of the project and addressed to foreign companies, and held respective online discussions with them.

"At the same time, on August 11, 2020, a corresponding workshop was held with the foreign companies which expressed their interest in participating in the project. The companies received the project proposals in September," the report said.

According to the report, on October 20, 2020, a trip was organized with the participation of investors to the area selected for the construction of the gas turbine power plant. Seven working groups on legal and institutional matters, issuance of state guarantees, economic assessment of projects, land allocation, environmental and social assessment, issuance of permits for construction and operation, as well as strengthening the network, continued their activities under the leadership of the relevant structures in the areas of activity of the commission created by the order of the President of Azerbaijan Ilham Aliyev dated December 5, 2019.

The ministry also noted that on January 9, 2020, executive contracts were signed between the Ministry of Energy and the ACWA Power (Saudi Arabia), as well as Masdar (UAE) companies, at the Cabinet of Ministers with the participation of Prime Minister Ali Asadov.

"In accordance with the executive agreements, visits were made with the participation of representatives of the relevant state bodies to the territories where the construction of solar and wind power plants is envisaged," the report said.

The working group, consisting of representatives of Azerenergy and Azerishig OJSCs, discussed preliminary schemes for integrating pilot projects into the power system, defined requirements for international standards covering measures for energy system management, electric power transmission, relay protection and automation, as well as the forthcoming work to strengthen the network.

Besides, with the involvement of the White and Case international consulting company, drafts of ‘Energy purchase and sale agreement’, ‘Investment agreement’, ‘Transmission network connection agreement’ and ‘Land lease agreement’ were prepared, which are planned to be signed with investors. The opinions and proposals were collected from relevant structures, improved, and presented to investors.

In accordance with the Order of the President of Azerbaijan dated December 28, 2020 ‘On measures to implement a pilot project for the construction of a wind farm with an investment capacity of 240 megawatts’, the Investment Agreement, the Energy Purchase and Sale Agreement, and the Transmission Network Connection Agreement were signed by the Ministry of Energy and Azerenergy OJSC together with the Saudi Arabian ACWA Power on December 30.

"Within the executive agreement signed in January 2020, negotiations with the UAE’s Masdar continue to discuss draft contracts related to the construction of solar power plants, and proposals for signing these agreements will be presented in the near future,” the report further reminded.

“For the aim to ensure implementation of the Azerbaijani president’s order dated May 29, 2019 ‘On accelerating reforms in the energy sector of Azerbaijan’, the ministry prepared and submitted proposals on attracting private investments in this area for improving the efficiency of the country's electric grid system to the Cabinet of Ministers. At present, discussions are underway to agree on the relevant legislative act,’ added the report.


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