BAKU, Azerbaijan, September 29. Work continues in five zones designated for wind energy production in the Caspian Sea, and nearly every zone has been assigned to different companies, Azerbaijan's Deputy Energy Minister Elnur Soltanov told Trend on the sidelines of the Baku Climate Action Week.
Soltanov briefed on the ongoing development of wind energy in the Caspian Sea, noting that more serious work is currently underway on a 200-megawatt pilot project.
"Offshore wind energy production is a very complex process. We are currently negotiating with investors. Installing 12-megawatt turbines and transporting them pose significant logistical challenges. However, work continues in the five zones identified in the Caspian Sea. Practically every zone has been assigned to various companies. Each zone has its own potential customer," he explained.
According to the deputy minister, no official tariff proposal has yet been received for the pilot project in these zones.
"However, the tariff is also part of the negotiations. Regarding the 200-megawatt offshore project specifically, more detailed information will be presented to the public in a few months," he said.
Soltanov also noted that, to date, the entirety of Azerbaijan's climate initiatives has been unequivocally underpinned by governmental endorsement.
"As a result of the modernization of the Mingachevir Thermal Power Plant, hundreds of millions of cubic meters of gas are now being saved. Previously, the equivalent fuel production was approximately 330 grams, but now this figure has dropped to 220 grams. This is a very significant result. Azerbaijan plans to increase its renewable energy capacity to two gigawatts (2,000 MW) by 2027.
This is a significant figure, considering that the total installed capacity of the country's power grid is nine gigawatts. All this will prevent the release of approximately three million tons of carbon dioxide (CO2) into the atmosphere. While Azerbaijan's average annual emissions are estimated at approximately 60 million tons equivalent, this is a very significant figure," he added.
Soltanov also elaborated on the latest initiatives in the renewable energy sector.
"Construction of 10 renewable energy plants has already begun. For example, the 240-megawatt Khizi-Absheron wind farm, being implemented by Saudi Arabia's ACWA Power, is nearing completion. The process of connecting the generated energy to the grid has already begun.
Furthermore, we are implementing projects jointly with BP and Chinese companies. Together with the UAE Masdar company, we are implementing one-gigawatt solar power plant projects in Neftchala and Bilasuvar," he mentioned.
Moreover, the deputy minister touched on the activities in the liberated territories of Azerbaijan.
"The combined capacity of the new hydroelectric power plants built in Karabakh and Eastern Zangezur exceeds 300 megawatts. These plants are capable of fully covering the region's electricity consumption. Excess energy is also being sent to other regions. In the coming years, the capacity of hydroelectric power plants in Karabakh and Eastern Zangezur will exceed 500 megawatts, as the Khudafarin and Giz Galasi hydroelectric power plants will be built within three years," the official explained.
In addition, Soltanov articulated the financial institutions' obligations within the renewable energy domain.
"Commitments on climate and green projects totaling approximately $2 billion have been made with Azerbaijani banks. This also includes funds raised through international financial institutions. Banks can attract financing both on the domestic market and from international financial institutions," he clarified.
Moreover, the deputy minister underscored the government's backing for initiatives aimed at optimizing energy utilization.
"Work is underway on the final version of the Energy Efficiency Fund's requirements. Through this fund, we will provide incentive support to many projects in Azerbaijan - at interest rates below market rates. Activity in this area will increase significantly in the near future," Soltanov concluded.
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