BAKU, Azerbaijan, March 16
Trend:
A signing ceremony of four memorandums of understanding between Azerbaijan and UAE’s Masdar company on cooperation in renewable energy sources was held in Azerbaijan’s Baku city on March 15.
A solar power plant with a capacity of 230 megawatts in Garadagh district of Baku is planned to be built during one year and a half as part of the signed documents. The investment cost of the Garadagh solar power plant construction project is $225 million.
The issues of green and clean energy will be worked out in the Karabakh and Eastern Zangazur economic regions within the memorandums. It is planned to build a wind power plant with a capacity of 100 megawatts in the Kalbajar-Lachin zone. Moreover, it is planned to develop solar energy in the region through foreign investments.
Azerbaijan is expected to save 110 million cubic meters of gas as a result of commissioning of the Garadagh solar power plant, which will generate three billion kilowatt-hours per year.
“Azerbaijan's cooperation in this case is important in terms of foreign economic activity," Azerbaijani Ph.D. in economics, analyst Ilgar Velizade told Trend.
He said it will allow Azerbaijan to diversify foreign economic activity with such countries as the UAE and Saudi Arabia, to intensify ties with the Arab countries and the leading economies of the Middle East.
He said this project is also aimed at strengthening Azerbaijan’s energy security and generating electricity from various sources.
“Azerbaijan will be able to ensure a sustainable energy balance, replace traditional energy sources with non-traditional ones, improve national green energy indicators and stimulate the development of the technological processes for introducing new technologies into our country's energy systems as a result of the construction of solar power plants.”
Velizade said it will be possible to supply the obtained volumes of gas for export as a result of using the renewable energy sources for generating electricity, and this will allow for an additional inflow of foreign currency into the Azerbaijani economy amid high energy prices.
Deputy Director of the International Institute for Energy Policy and Diplomacy under Moscow State University of International Relations (MGIMO), analyst of the MGIMO Center for Sustainable Development, expert, Ph.D. in Economics Igbal Guliyev in turn said that development of renewable energy sources in Azerbaijan contributes to the achievement of the country's goals related to the climate change.
The analyst added that any project being implemented by the Azerbaijani government is part of a general plan to increase the share of renewable energy sources in the overall energy balance.
“We know that Azerbaijan plans to increase the share of renewable energy sources in the energy balance up to 30 percent till 2030,” Guliyev said. “This will allow to reduce the environmental burden and minimize the negative impact on the environment.”
“We know that the development of renewable energy sources contributes to the achievement of Azerbaijan's goals related to the climate change,” Guliyev said. “The country also committed itself to reducing greenhouse gas emissions by 35 percent till 2030.”
The analyst stressed that the introduction of renewable energy sources and the mandatory constant improvement of energy efficiency will help reduce domestic consumption of oil and gas.
“It will be possible to receive additional income from increasing the export volumes of hydrocarbon,” Guliyev said. “We understand that in case of increasing energy efficiency and the share of renewable energy sources in the energy balance, additional oil and gas volumes are available, which Azerbaijan can export and receive foreign exchange revenues.”
The analyst said that the global climate challenges, ambitious commitments and strategies in green energy and green economy of the leading countries have recently affected and will continue to have a great impact on the energy sector.
“Azerbaijan has a clear vision, goals and objectives regarding green energy policy,” Guliyev said. “Azerbaijan supports the challenges and goals regarding the transition to clean energy, clean energy technologies, hydrogen production and efforts to strengthen the positions of renewable energy sources in the energy mix.”
The analyst added that these spheres are important components of the national priorities of Azerbaijan’s social and economic development.
“The memorandums signed on March 15 will make a great contribution to the implementation of these priorities,” Guliyev said.