2024-06-02 09:12:44
Writer: Emin Sevdimaliev
Transformations of the worldwide economic system are bringing inexperienced power to the forefront. If over the previous many years this space of the economic system was solely a topic of dialogue at varied worldwide platforms, then in recent times one can see that nations have begun to pay extra consideration to this difficulty and are shifting to concrete actions. The most important transnational oil giants usually are not far behind, altering their enterprise fashions to take care of their positions sooner or later. Azerbaijan can also be working to vary the format of nationwide power and the outcomes of the work are already seen. At present, Azerbaijan is a superb instance of a profitable inexperienced transition mannequin.
Let’s attempt to perceive the explanation why Baku pays a lot consideration to the event of inexperienced power.
If we discuss outcomes, the principle information of the 12 months is, after all, the holding of the COP29 local weather summit in Baku. The summit, anticipated to be held in November, will change into the principle platform for discussing problems with the local weather agenda, inexperienced economic system and the transition from conventional power sources to different ones. If we take a look at the problem extra broadly, we will say that COP29 can also be a enterprise platform and an vital political discussion board, since economics and politics are two interrelated components.
Holding such a discussion board is a vital achievement for Azerbaijan. In any case, the eye of the entire world will probably be centered on our nation, and the standing of the host nation will strengthen its authority and make it doable to succeed in vital enterprise agreements on this space.
Azerbaijan’s potential
Azerbaijan’s inexperienced power potential is a very powerful level to concentrate to. The technical potential of Azerbaijan’s renewable power sources is 135 GW on land and 157 GW offshore. The financial potential of renewable power sources is 27 GW, wind power – 3000 MW, photo voltaic power – 23000 MW, bioenergy potential – 380 MW, potential of mountain rivers – 520 MW.
Plenty of power giants have already signed related agreements on the implementation of initiatives in Azerbaijan. “Masdar” from the United Arab Emirates, “ACWA Energy” from Saudi Arabia, “BP” from the UK, “Fortescue Future Industries” from Australia, “TEPSCO” from Japan, “Maire Tecnimont” from Italy, “China Gezhouba Group Abroad Funding” – right here is an incomplete listing of overseas traders betting on Azerbaijan’s future within the discipline of inexperienced power.
The range of climatic zones creates alternatives for producing photo voltaic, wind and hydropower. Though Azerbaijan shouldn’t be a big nation in measurement, such variety offers huge room for maneuver for each the state and traders. In any case, each investor can discover a venture that fits their necessities and enterprise pursuits.
And Azerbaijan can already boast of conquering vital milestones within the discipline of inexperienced power. One of many noteworthy initiatives is the settlement to create a 240 MW wind energy plant in Azerbaijan. The full funding within the venture will probably be $286 million.
Azerbaijan additionally plans to create a inexperienced power zone within the territories liberated from occupation. This can create jobs for the returning inhabitants, prepare a brand new era of extremely certified specialists and create know-how obtainable for the event of the nation’s future.
Work additionally continues on the implementation of a cable laying venture, with the assistance of which it is going to be doable to move inexperienced power from Azerbaijan to EU nations. A three way partnership (JV) to develop the “Black Sea inexperienced power hall” venture for the provision of “inexperienced” power from Azerbaijan by way of Georgia, the Black Sea to the EU will quickly be registered in Bucharest (Romania). As a part of this settlement, it’s anticipated to assemble an undersea electrical cable with a capability of 1,000 MW and a size of 1,195 kilometers. Over time, the cable will permit the provision of as much as 4 gigawatts of inexperienced power from the Caspian area to the EU. The creation, in parallel with this cable, of a system for supplying “inexperienced” hydrogen from the Caspian area to the EU can also be being studied.
You will need to word that almost all small nations when it comes to their measurement don’t tackle the problem of inexperienced power growth as severely as Azerbaijan does. Thus, Azerbaijan can change into an instance of a rustic that has created a profitable mannequin for the transition to inexperienced power.
Inexperienced power is greater than only a matter of economics
For a lot of, inexperienced power is a phenomenon associated strictly to economics. I don’t share this view and suggest to take a look at inexperienced power from a security perspective. Think about a hypothetical state of affairs during which local weather change renders components of a rustic uninhabitable for all times or financial exercise. This may result in severe penalties, as a result of uninhabited territory is a burden for the nation attributable to the truth that its financial potential shouldn’t be used.
One other drawback is that conventional power sources are finite assets. In the end, each nation must take into consideration this. The massive drawback is that the exhaustibility of oil and fuel will increase the query of the necessity to make use of specialists within the oil and fuel sector. And given their expertise, it is going to be a lot simpler to repurpose them to work within the renewable power sector. This can save jobs for extremely certified specialists.
On this context, switching to inexperienced power is the one obtainable answer to this hypothetical drawback. Azerbaijan is working to develop the inexperienced power sector, together with to ensure the social growth of the nation’s areas. In addition to to ensure a steady future for residents, power specialists who must re-profile, and strengthen the worldwide standing of Azerbaijan.
Renewable power is projected to supply 65 p.c of world electrical energy manufacturing by 2030. The Worldwide Renewable Power Company estimates that by 2050, 90 p.c of the world’s electrical energy may come from renewable or inexperienced power sources.
Contemplating the above, it turns into clear that inexperienced power is the important thing to additional strengthening safety and responding to new challenges, a few of which can come up sooner or later. This reveals that Azerbaijan is finishing up preventive work, preferring to stop tough conditions from arising sooner or later.
Azerbaijan’s method will decrease the prevalence of dangers and create the mandatory preconditions for future financial transformation. It is vital that this mannequin will correspond to the principle international financial developments.
The steps taken in Azerbaijan have already elevated the nation above different states which can be making an attempt to efficiently implement the inexperienced transition. Regardless of the prevailing obstacles, Azerbaijan has already achieved greater than different nations, which permits us to speak in regards to the “Azerbaijan Mannequin of Inexperienced Transition”. All that continues to be is to proceed fruitful work on this route, however Baku’s beginning place on this matter, in comparison with different opponents, may be very, very engaging.