The report on the implementation of the Strategic Road Map on Development of Utility Services in 2018 will be completed soon

The report on the implementation of the Strategic Road Map on the development of utility services (electricity and heating power, water and gas) in the Republic of Azerbaijan in 2018, for which the Ministry of Energy acts as a coordinator and is responsible for implementation of 23 main actions, is coming to an end. During this period, 4 meetings of the working group were held under the coordination of the Ministry of Energy, and sub-working group for priorities of the Strategic Road Map held 16 meetings.

According to the Strategic Roadmap Plan, in view of population growth and industrialization process, the domestic demand for electricity, as well as the export opportunities of electric power were forecasted. Comparative analysis was undertaken with respect to the feasibility study to identify priorities of energy sources. Feasibility study on the type and construction properties of the power plant based on traditional energy sources has been developed.

The following projects "Strengthening the Network to Support Renewable Energy Projects", "Regulatory support of Renewable Energy Sources", “Assessment of the level of preparation for use of Renewable Energy", "Knowledge exchange on the development of floating solar panels system and technical assistance" are implemented by the support of the European Bank for Reconstruction and Development (EBRD), the International Agency for Renewable Energy and the Asian Development Bank in order to take measures for identification of financing sources for investments. The Ministry of Energy together with the SNC-Lavalin's Atkins company of Great Britain has launched the implementation of the project "Improving the operation of small hydropower plants and the efficient utilization of hydropower capacity".

In order to reach a balance between supply and demand under the action of “creation of additional production capacities”, the country has developed an action plan for the optimization of consumption through the various market instruments and creating additional production capacities. The country's alternative and renewable energy potential has been revised.

Relevant proposals were made on the selection of the operation and financing form of the power plants requiring investment. It was considered reasonable to build production capacities for renewable energy sources at the expense of private investment. Analysis of the feasibility study for the implementation of the Export Potential Plan was carried out. The report on "prime cost, fuel consumption, technical losses of electric power stations, and on diagnosis of Energy Efficiency of electricity stations and electricity transmission facilities of "Azerenergy" OJSC was prepared.

German company VPC has been involved in the analysis of the activities of grids to prepare specific proposals. Under the action of “implementation of key performance indicators (KPIs) concerning the quality of electricity power supply”, the experience of Germany and Switzerland has been studied and KPIs were identified for the followings: “Indicator of the level of preparation of electricity power transmission system”, "Quality of electricity power ", "Losses in transmission ", "Reliability of electricity power supply", "Maintenance and Repair Indicators", "Prime cost of electricity power transmission".

The actions under “Introduction of alternative sources to supply remote areas where gasification is not feasible” include an analysis of the effectiveness of the gasification of remote areas, international practices and options for solution of problems in this field, as well as study of alternative energy supply for technically non-viable residential areas and preparation of terms of reference for international experts with respect to the preparation of concrete proposals.  

The draft of “Rules of using heat energy" has been developed to improve the regulatory framework in the field of heat supply. Necessary measures have been taken by the Ministry of Energy to set up an open tender on the implementation of institutional measures in the field of heat supply.

It should be noted that the final report prepared on the basis of information submitted to the Ministry of Energy with regard to actions implemented in the present year by the 12 government agencies under 7 targets and 14 priorities of the Strategic Road Map, will be submitted to the Administration of the President of the Republic of Azerbaijan and the Center for Analysis of Economic Reforms and Communications.