Baku, Azerbaijan, 20 October 2016
Central Asia Regional Consultation Meeting
Jamil MalikovDeputy Chairman
Opportunities and challenges for the development of the renewable energy in Azerbaijan
The State Agency on Alternative and Renewable Energy Sources of the Republic of Azerbaijan
Current status of RE development in Azerbaijan
The State Program on Use of Alternative and Renewable Energy Sources in Azerbaijan Republic (2004);
Establishment of a regulatory State Agency on Alternative and Renewable Energy Sources;
Order of President of the Republic of Azerbaijan "On the development of the State Strategy on use of alternative and renewable energy sources in the Republic of Azerbaijan for 2012-2020”;
Order of President of the Republic of Azerbaijan “On the approval of “The main directions of the strategic roadmap for key sectors of the economy and national economy” and about subsequent issues;
Decree of President of the Republic of Azerbaijan on approval of “AZERBAIJAN 2020: LOOK INTO THE FUTURE” DEVELOPMENT CONCEPT.
Strategic support of developing RE:
Current status of RE development in Azerbaijan
Existing legislation on RE:
On the use of energy resources (1996);
About Electric Energy (1998);
About Energy (1998) ;
About Electric and heat power plants (1999) ;
“On the use alternative and renewable energy sources” (draft);
About energy efficiency (draft).
Current status of RE development in Azerbaijan
The State Program on Use of Alternative and Renewable Energy Sources in Azerbaijan Republic:
To determine potential of alternative and renewable energy in the electricity power generation;
To increase the efficiency of utilization of energy resources through attracting exploitation of renewable energy;
To provide additional job places by creating new energy production facilities;
To increase energy capacity and achieve energy security at expense of renewables by considering total capacity of traditional energy sources in Azerbaijan Republic.
Current status of RE development in Azerbaijan
Realization of state policy by AREA:
State support to the sector;
Improvement of legislation;
Development of private sector;
Financial support and subsidy policy;
Adoption of modern technologies;
Research & development, information exchange;
Education, training and promotion of the green energy.
Current status of RE development in Azerbaijan
Strategical directions of developing RE in Azerbaijan:
The production of electricity and thermal energy to determine
the main directions till 2020 by ARES;
Establishment of legal and regulatory framework in the sphere
of ARES;
Implementation of promotional events on the use of ARES;
Provision using ARES in all sectors of economy based on
domestic and international scientific and technical potential.
Current status of RE development in Azerbaijan
Order of President of the Republic of Azerbaijan dated 16.03.2016 “On the approval of “The main directions of the strategic roadmap for key sectors of the economy and national economy” and about subsequent issues
Estimation:
“If no structural changes in the consumption over the next 5-10 years, new investment will be necessary to build production capacity of 1000 MW to ensure satisfactory supply”
-50 % of new investment are designed to be natural gas installations and 50 % ARES.
Safe, diversified and environmentally sustainable supply
Current status of RE development in Azerbaijan
“AZERBAIJAN 2020: LOOK INTO THE FUTURE” DEVELOPMENT CONCEPT: Expanding the use of alternative and renewable energy sources;
Stimulating implementation of activities;
The development of the institutional atmosphere;
Strengthening of scientific and technical potential;
Continue training specialists;
Carrying out works to enlighten energy consumers;
Flexible regulation of energy tariffs;
Active participation of the private sector in this process will be
encouraged.
Development map for RES - 2020
Renewable energy technical potential in Azerbaijan
Small rivers Geothermal
Biomass and Waste Solar
Wind
%59
32
3.5
3.02.5
Total 25350 100
3446.8 2681.0 1828.8 1631.7 1480.0 1828.5 2106.2 2605.6 2982.04157.8
5817.5
14900.1 16936.020619.9 21354.4
22882.5 22704.4 22424.722906.6
23550.623701.4
22598.9
0.0
5000.0
10000.0
15000.0
20000.0
25000.0
30000.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Share of RE sources in energy supply, mln kW hour
Renewable sources Non-renewable sources
18346.9
19617.0
22448.7 22986.1
24362.5 24688.4 24530.925512.2
26532.6
27859.228416.4
18.8 13.78.1 7.1 6.1 7.4 8.6 10.2 11.2 14.9
20.5
81.2 86.391.9 92.9 93.9 92.6 91.4 89.8 88.8 85.1
79.5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Share of RE in energy supply, %
Renewable sources Non-renewable sources
0.0
1000.0
2000.0
3000.0
4000.0
5000.0
6000.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Hydro Wind Solar Bio&Waste Bio&Waste
3446.8
2681.0
1828.81631.7
1480.01828.5
2106.2
2605.6
2982.0
4157.8
5817.5
Dynamics and forecast of renewable energy production, mln. kW hour
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Hydro Wind Solar Bio&Waste
1023.5 1034.3 1061.0 1148.5 1178.4 1208.8 1232.0
1383.6
1563.6
2027.0
2676.0
Dynamics and forecast of renewable energy installation, MW
Investments in RE (2005-2015)
467.5 mln.AZN (47.3%)
250.5 mln.AZN (25.4%)
164.3 mln.AZN (16.6%)
105.1 mln.AZN (10.7%)
Biomass & waste
Hydro (0.01<25 MW)
Wind energy
Photovoltaics & heatpumps
State investments – 83 %Non-state investments – 17%
987,4 mln. AZN
Challenges in RE development in Azerbaijan
Technical challenges: problems with technology transfer;
Financial challenges: lack of financial resources; high level of interest rate;
Other challenges: lack of international organizations support in awareness sphere.
Opportunities for increasing the development of RE
Hybrid PP
Gobustan Experimental Polygon and Training Center – 5.5 MW
Solar PP Pirallahy Solar Power Plant – 2.8 MW Surakhany Solar Power Plant – 2.8 MW Nakhchivan Solar Power Plant – 20 MW
Wind PP
Yeni Yashma Wind Farm - 50 MW Absheron Wind Farm (with PV component) – 80 MW Sitalchay Wind Farm – 3.6 MW Hokmaly Wind Farm – 8.0 MW
Biomass PP Biomass cogeneration on Oghuz, Aghjabedi and Samukh (feasibility study) – 16 MW
RE support for agriculture
RE support for the solution of infrastructure issues Samukh Agro-Energy Residential Complex
“Wind Island – 1” Offshore Wind Farm
Waste-to-Energy Plant
Waste to energy
Opportunities for increasing the development of RE
Thank you for your attention!
AZ1000, Azerbaijan, Baku, 80 U.Hajibayov str., Government HouseTel.: (+99412) 493 15 26Fax: (+99412) 493 16 97E-mail: [email protected]: www.area.gov.az
