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The development of the renewable energy sector was a priority in the first half
In the first half of 2020, the draft law "On the Use of Renewable Energy Resources in the Production of Electricity" developed in accordance with the decree “On accelerating reforms in energy sector of the Republic of Azerbaijan” was submitted to the Cabinet of Ministers of the Republic of Azerbaijan after agreement with relevant bodies. At the same time, drafts of other normative legal acts have been developed.
Works was continued within the pilot project ‘Knowledge Exchange and Technical Assistance on the Development of Floating Solar Panels System’, implemented with the support of the Asian Development Bank. Within the project, it is planned to install solar panels on the surface of Boyukshor Lake in an area of 800 m2. Discussions were held on the identification and evaluation of local potential contractors, and increasing the potential for the use of facilities. Along with the commissioning of the 100 kW pilot floating solar station in Boyukshor Lake, it is planned to calculate the total potential of floating solar photovoltaic systems across the country and to develop the feasibility study of the floating solar photovoltaic station with greater power in Lake Boyukshor.
Azerenergy OJSC has been applied to provide the opinion on the possibility of connection to the electricity network through existing and planned 220/110/35 kW substations located near Lake Boyukshor and to provide terms of references for connection.
Within the cooperation between the Ministry of Energy and the European Bank for Reconstruction and Development, the project ‘Support for Renewable Energy Auctions in Azerbaijan’ is being implemented. Discussions were held on PPA (Power Procurement Agreement), CA (Connection Agreement) and auction rules, as well as other documents related to the auction prepared by the consultant company.
The final report of “SNC-Lavalin’s Atkins” company on the results of research on the improvement of the activities of small hydroelectric power plants in Azerbaijan and on efficient use of the hydro potential of rivers was presented to the Ministry of Energy.
The number of companies signed a memorandum of understanding within the framework of cooperation with many international companies in order to strengthen cooperation in the field of using renewable energy sources and to promote investment in this area in the future reached 11. Companies signed cooperation documents include: - Turkish "Tekfen Construction", "Avelar Solar" of the Russian Federation, "Masdar" of the United Arab Emirates, Norwegian "Equinor A.S", "Total Eren" of France, BP of Great Britain, "ACWA Power" of Saudi Arabia, "Mitsui&CO" of Japan, "Lucia Holding" of France, "Ansaldo Energia" of Italy and "Al-Maktub" of the United Arab Emirates.
During the reporting period, 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 of the President of the Republic of Azerbaijan on "Actions for implementing pilot projects on the use of renewable energy sources” continued their work.
In accordance with the implementation agreements signed between the Ministry of Energy and “ACWA Power” of the Kingdom of Saudi Arabia and “Masdar” of the United Arab Emirates, visits were made to the areas intended for the construction of 240 MW wind and 200 MW solar power plants with the participation of representatives of state bodies and the issues related to the land were solved out.
¬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.
Drafts of “Power Purchase and Sale Agreement”, “Investment Agreement”, “Transmission Network Connection Agreement” and “Land Lease Agreement” were developed with the involvement of an international consulting company and submitted to investors.
It should be noted that the relevant proposals with the German company VPC have been started to prepare in connection with the determination of optimal options for the gradual increase in the share of renewable energy sources based on international experience in order to expand the use of renewable energy sources in Azerbaijan and achieve the set goals. The proposals to be prepared include the study of connection opportunities in the electricity network, determination of integration and strengthening measures, as well as the provision of technical consultancy services related to the connection of pilot projects to the network in order to bring the share of renewable energy resources in the electricity generation capacity to 30% by 2030. The relevant proposals are planned to be submitted by the company to the Ministry of Energy and, upon completion, agreed and submitted to the Cabinet of Ministers in the near future.