BAKU, Azerbaijan, August 1. Azerbaijan is a
major exporter of gas and oil to the European and global markets,
and now it can become a major electricity exporter, provided the
investment comes from a combination of private and state sources,
such as the European Bank for Reconstruction and Development and
others, possibly, the World Bank, to build the generation capacity
for Azerbaijan itself, for the region, and for Europe, Ariel Cohen,
PhD, Senior Fellow at the Atlantic Council Eurasia Center and the
Managing Director of Energy, Growth and Security Program at the
International Tax and Investment Center, told Trend.
He pointed out that this electricity from alternative energy
sources such as solar and wind would allow more natural gas to be
exported to global markets.
"Azerbaijan has signed 10-gigawatt worth of Memoranda of
Understanding deals, and even if 1/3 or one half of those is
materialized, this will be a major source of energy for Europe. The
idea is to export such electricity by cable to the Georgian coast
and then across the Black Sea to Romania. Some of it will go to
Türkiye via a grid.
This would boost the amount of gas available for exports and
would make Azerbaijan a major electricity exporter. The question of
course is how economic and efficient such a proposition is. A lot
of numbers need to be crunched in terms of investment, in terms of
the costs, and in terms of taxation in that respect. It may take
time, but I am pretty sure that at least some amount of alternative
green energy can be generated in Azerbaijan, consumed in
Azerbaijan, in the Caucasus and also exported to Europe," added
Cohen.
Azerbaijan, Georgia, Hungary, and Romania signed an agreement in
Bucharest on December 17, 2022 to build an underwater electric
cable under the Black Sea. The project could become a new power
source for the European Union. The 1,100-kilometer cable from
Azerbaijan to Romania will provide Azerbaijani energy for the rest
of the continent. The project could be completed within three to
four years.
The results of the preliminary study on the project will be known
in September.