2023-09-04 08:11:00
The International Finance Corporation (IFC) has all the opportunities to work with Azerbaijan in the field of renewable energy and help the country reach a new level in this field by attracting private investments.
Day.Az reports that Ivana Fernandes Duarte, IFC’s regional manager for the South Caucasus, told Trend in a private interview.
He noted that IFC and the International Bank for Reconstruction and Development (IBRD) are working together with the government of Azerbaijan to implement the road map for the development of offshore wind energy, including attracting developers and private investors.
“Although growth in oil and gas production has played an important role in strengthening Azerbaijan’s economy, energy diversification is the key to ensuring the country’s future sustainability in the post-pandemic era. Moving forward, Azerbaijan will, in line with its national development concept by 2030, use its non-oil through innovative initiatives of the private sector. is ready to optimize the sector.
Diversification from oil and gas will increase competitiveness by helping to accelerate decarbonisation. Azerbaijan has sufficient renewable energy resources, especially in the field of offshore wind energy.
“According to the assessments carried out within the framework of the World Bank’s energy sector management support program, the technical potential of offshore wind energy is 157 gigawatts, and the current total installed capacity is close to 8 gigawatts,” said Duarte.
He noted that the road map of offshore wind energy development published by BYIB and IFC shows that the country has the potential to install 7 gigawatts of offshore wind energy by 2040.
“The use of this wind energy will help provide up to 7 billion USD in total added value at the local level. As Azerbaijan follows a private-sector-led growth model, the development of offshore wind energy will enable the country’s energy sector to become more competitive, as well as zero waste in this sector. As a result, Azerbaijan can export renewable energy to its neighbors and Europe and thus become a regional energy center,” the regional manager added.
It should be noted that Azerbaijan benefits from great international support for the development of renewable energy sources.
A number of contracts have already been concluded with foreign partners. Agreements with ACWA Power and MASDAR, as well as a 12 GW agreement with Australia’s Fortescue Future Industries, are of strategic importance in terms of increasing supplies of energy resources to Europe.
By the end of the year, the first solar power plant with a capacity of 240 megawatt-hours is planned to be put into operation. Azerbaijan has signed memorandums of understanding and agreements on the production of 10 gigawatts of electricity.
The main sales market for “green” energy from Azerbaijan is Europe, and there is already a specific project on the supply of energy from renewable sources. Thus, on December 17, 2022, an agreement was signed between Azerbaijan, Georgia, Romania and Hungary on the construction of an energy bridge from the Caucasus region to Europe. Within the framework of the agreement reached, it is planned to lay the 1,195-kilometer “Black Sea Energy” electric cable with a capacity of up to one thousand megawatts. The cable is designed to transport “green” energy produced in Azerbaijan through Georgia and the Black Sea to Romania and from there to Hungary and other parts of Europe. This will make it possible to increase supplies to four gigawatts of “green” energy.
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