In the first quarter of 2020, a number of measures were taken in the field of using renewable energy sources

During the first quarter of 2020, 7 working groups established under the leadership of relevant bodies on the activities of the Commission established in connection with the implementation of the tasks arising from the Order No. 1673 of the President of the Republic of Azerbaijan dated December 05, 2019 on "Actions for implementing pilot projects on the use of renewable energy sources” continued their work.

During the reporting period, the Working Group on the allocation of land plots paid visits to the areas called "Area 60" for the project on the use of solar energy and "Area 1" for the project on the use of wind energy with the participation of representatives of the relevant authorities in order to review the land plots on the spot, and discussions were held on the areas.

­The Working Group on network strengthening and network integration discussed the initial schemes for the integration of pilot projects into the energy system, identified the requirements for international standards covering energy system management, power transmission, relay protection and automation, and the work to be done to strengthen the network. During the meeting between representatives of ”Masdar“ company and of ”Azerenerji" OJSC, a one-way scheme related to the solar power station presented to Azerenerji OJSC by the company was discussed  and the agreement was reached. At present, the” Acwa Power"Company is carrying out work on clarification of the configuration of the territory in connection with the wind project. Following the completion of the clarifications, the relevant scheme will be submitted to” Azerenerji " OJSC and agreed.

The work of the Working Group on legal and institutional issues continued during the quarter. The "White & Case" company, which was cooperated after the opinion of the Working Group submitted to the Commission, prepared the preliminary projects of the contract for the purchase of electricity, the contract for the connection of power plants to the electricity network, the state guarantee agreement on the implementation of the projects and other required contracts. These projects were presented to the relevant working groups in order to hold discussions before the meetings with the representatives of” White & Case " company, to develop the relevant opinions on the documents and to express the views on the conceptual issues. It should be noted that the visit of “White & Case” company to Baku in the second quarter of this year is planned to hold discussions on economic, financial, commercial and technical issues.

As a result of the discussions held by the Working Group on ecological and social assessment, the proposed area visit was paid and the opinion on the selected areas for the implementation of the pilot project on the use of renewable energy sources was prepared and submitted to the Ministry of Energy.

During the quarter, discussions were held by the Working Group on construction permit and commissioning, and it was decided to submit proposals to the Commission on the transfer of the envisaged areas to the balance of the Ministry of Energy and simplification of conciliation and approval procedures required by law with the participation of authorized representatives of the Ministry of energy and  the State Committee for Urban Planning and Architecture taking into account the importance of pilot projects implemented by attracting foreign investors and the limitation of the date specified in the relevant order. 

In the first quarter of the current year, a number of measures were also taken in accordance with the time sheet to assess the potential for electricity generation from renewable sources and to take steps to exploit this potential. The work on investment in selected and prioritized renewable energy sources in areas with high potential has been continued through auctions. Within the framework of the cooperation with the European Bank for Reconstruction and Development (EBRD) on the design and implementation of the mentioned auctions, auction rules, principles of sales and purchase agreements and draft accession agreement developed by the relevant consulting company were submitted to the Ministry of Energy for consideration. It should be noted that EBRD has agreed to assist in the installation of wind measuring stations and conducting measurements in one of the renewable energy potential areas. At present, the bank is working to attract a consultant company that will design and implement 12-month wind measurement and monitoring works.

During the reporting period, in order to carry out the tasks assigned to the Ministry of Energy by the Order No. 1209 dated 29 may 2019 on "Accelerating reforms in the energy sector of the Republic of Azerbaijan", the draft law "On the use of renewable energy sources in the production of electricity" prepared with the involvement of the Norwegian company DNV GL Energy Advisory GmbH has been submitted to the relevant government agencies for approval.

 Pilot project “Knowledge Exchange and Technical Assistance on the Development of Floating Solar Panels System” envisaging the installation of a photovoltaic system with a capacity of up to 100 kW on Boyukshor Lake, as well as the development of business models to encourage the participation of the private sector in the installation of solar panels, strengthening national capacity through trainings is being continued, and the project is planned to be completed by March 2021.

Discussions are being continued on the cooperation established last year with BP and ATKINS in the field of commissioning, construction and design of small hydropower plants and on the implementation of projects in this area with ATKINS with the support of BP.