Azerbaijan, Baku, April 27 / Trend /
Leyla Abdullayeva, Trend analytical center expert
The development of alternative energy sources in the future promises significant investments to Azerbaijan. Along with the development of hydrocarbon reserves, this direction of the economy is also attractive for investing large amounts of capital because of favorable natural conditions for developing renewable energy sources.
First of all, the country has high potential for wind energy, especially on the Absheron Peninsula. Flaws range from three to seven meters per second year-round. This is considered ideal for the efficient operation of wind generators. To use solar energy is beneficial. There are 260-280 sunny days in Azerbaijan a year. There are thermal waters in the country, especially in Guba. The water temperature sometimes reaches 90 degrees. Thermal waters are used in households for generating heat.
The development of this sphere just begins to gain momentum in Azerbaijan. However, much work has been done in this direction. This attracts the attention of the foreign public. At present, the share of alternative sources hits up to 10 percent, taking into account the use of small hydropower stations in the country. The Azerbaijani State Agency for Alternative and Renewable Energy under the Ministry of Industry and Energy plans to bring the share of alternative energy sources in a total volume of energy generation to 20 percent by 2020. Today, the country has allocated for this purpose $ 90 million.
Azerbaijan has formulated a legislative framework for renewable energy within a short period. It has developed state programs and created the necessary state agencies. At present, a state program on the use of alternative and renewable energy sources in Azerbaijan for 2012-2020 and the strategy are being prepared. All these programs are aimed at success. This strategy is similar to the initiative of Azerbaijan's modern oil strategy. A polygon with hybrid solar and wind power plants was established in Gobustan within this activity to explore the possibilities of alternative and renewable energy sources.
"Azguntex" plant was opened on April 24 to produce solar modules and LED lamps in the Azerbaijani city of Sumgait. The state agency on alternative and renewable sources of energy stressed that the panels, equipped with 60 photo-cells ranging from 42 to 250 watts will be manufactured at the plant at the level of international standards and consistently produce energy.
It's necessary also to note the importance of the High-Tech Park project of the State Agency on alternative and renewable energy sources that will be created in Sumgait. It is planned to build 15 plants based on alternative and renewable energy technologies and energy efficiency on the park's territory. Factories of optical lenses, glass and basalt fibers, accumulators and other enterprises created in the park will allow to produce the equipment needed to obtain and use alternative energy.
Due to this the required equipment will be cheaper, besides, its application will also be much simpler. LED lamps, which are new generation lamps, are notable for durability. It is also provided to build a tube mill for their production in the park.
But, as is seen, at this point, this sphere in Azerbaijan is limited only by the activities of the state. However, Director of State Agency on alternative and renewable energy sources Akim Badalov said the development of alternative energy in the country is only possible on the principles of public-private partnership (PPP).
To promote the private sector's engagement in this new area for the country's economy, the government of Azerbaijan is developing support mechanisms, including preferences, subsidies, preferential taxation and credit, has introduced a system of customs preferences. Thus, import of wind turbines is exempt from import duties and VAT, and soon spread of these benefits to other types of equipment for this sector is also provided. After all, in spite of the favorable natural conditions, indicators of the cost of production of alternative energy are many times higher than the cost of traditional energy production and production itself has a long payback period.
Therefore, the Azerbaijani government now paves the way for attracting private investments of both local and foreign companies.
Regarding the latter, Austrian company PORR has already expressed its interest in carrying out projects in waste management, construction of hydropower stations, development of alternative energy sources in Azerbaijan. Its experience in this area exceeds 140 years and it has offices in 16 countries around the world. In addition, the Spanish Alten Group company is preparing a feasibility study for pilot projects in Azerbaijan in the framework of the European Commission-funded program of reforms in the energy sector. A couple of years later this area of Azerbaijan will be represented by the most influential and innovative companies in Europe operating in the field of alternative energy sources.
Conclusions and recommendations of major international energy organizations, such as the International Energy Agency, International Agency for Renewable Energy, World Economic Council, show that the global demand for energy continues to grow, so the development of renewable energy sources can be an effective solution for ensuring economic prosperity.