Weekly economic review (09.11- 14.11.2009)
Future is for electricity from renewable sources. And in Azerbaijan there are great opportunities for the development of alternative and renewable energy resources. With its large reserves of traditional energy sources, Azerbaijan recognizes the priority of development of alternative energy resources in the country. Today, the electricity from renewable sources is more expensive than hydrocarbons, but the situation may change in coming decades in light of the rapid development of scientific and technological progress in the world. It needs to create all the opportunities in Azerbaijan for foreign investors in the development of this sphere.
Last week, Azerbaijani President Ilham Aliyev signed a decree approving the statutes of the State Agency for Alternative and Renewable Energy Sources of the Ministry of Industry and Energy of Azerbaijan.
According to the decree, the activities in the field of alternative and renewable energy sources will be carried out upon special permission of the Ministry of Energy. The Ministry of Industry and Energy will issue special permits for activities in the field of alternative and renewable energy resources, particularly in the design, construction and operation.
The government has already determined the method of financing the development of alternative energy. On the one hand, the projects in this regard has become a priority for investment of the Azerbaijan Investment Company, on the other hand, from 2010 the State Oil Fund of Azerbaijan (SOFAZ) will begin funding development of alternative energy. An Agency for Renewable and Alternative Energy Sources has already been established under Ministry of Industry and Energy.
The OSCE also expressed preparedness to assist in the development of alternative and renewable energy sources. Representative of the German Federal Economics and Technology Ministry Andreas Obersteller said that the EU and the Azerbaijani Economic Development Ministry will sign a Memorandum of Understanding, which includes training on the principles of management in the field of alternative and renewable energy sources.
Greece is also prepared to share its experience with Azerbaijan in the field of alternative and renewable energy sources. A Greek agency for development has already started functioning in Greece within the Black Sea Economic Cooperation, as well as the country has the National Agency for Alternative and Renewable Energy Sources.
Japan has extensive experience in the development of alternative and renewable energy sources. The Japanese Mitsubishi Heavy Industries Corporation and IHI are developing a project for building a large and powerful cosmic generator of electricity worth $21 billion. Research and development involve 16 Japanese industrial and research companies
The fact that relevant projects are financed by private individuals testify that the issue of electricity is out of purely scientific categories and stood up to commercialization. The well-known billionaire financier and philanthropist George Soros announced his intention to invest over $1 billion in technology to produce "clean" energy, which should help in combating climate change. Soros announced the establishment of an organization Climate Policy Initiative, for which he will annually provide $10 million for ten years.