Industry and Energy

Baku. Nijat Mustafayev – APA-Economics. During the last decades increase of environmental pollution level and distortion of the heat balance of the atmosphere caused global climatic changes. One of the main causes of the global warming observed as a result of this, is toxic substances thrown into the atmosphere during the utilization of the traditional fuels. This and also the deficiency of the traditional fuel and scantiness problems of fuel recourses in the world make the extension of the utilization of alternative and renewable energy urgent. Because the mentioned energy is safe ecologically, renewable, economic and nearly unlimited. Also, sharp increase in oil prices since late 2007 affected positively on the field of alternative power engineering – during the financial crisis variety of oil-importing countries just by resorting to non-traditional energy have increased the utilization of solar energy, wind power, water energy and other alternative sources and have intensified the approach to the development of this sphere.

Azerbaijan which develops its economy mainly based on oil and gas production, shows serious interest in alternative energy sources. Notwithstanding the fact that hydrocarbon reserves are sufficient the administration of the country realizes that they will be exhausted year after year and it’s important to keep environment unpolluted. Just on that score appropriate resolutions and state program have been confirmed by the Executive in the direction of development of the field of alternative and renewable energy in Azerbaijan, in special State Agency on Alternative and Renewable Energy Sources was established at the Ministry of Industry and Energy. The Program on Alternative Energy which started to be executed in Azerbaijan in 2004 and the Resolution on preparation of State Strategy on use of Alternative and Renewable energy sources in Azerbaijan for 2012-2020 can be noted specially from them. By involving local and international companies with extensive experience in this field, State Agency on Alternative and Renewable Energy Sources prepares the project of the State Strategy on use of alternative and renewable energy potential existing in the country together with appropriate central and local executive authorities. Definition of the main directions for 2012-2020 on electric power and thermal energy based on alternative and renewable energy sources in the country, establishment of normative legal base of this field, taking stimulating measures related to use of non-traditional energy sources and grounding on internal and international scientific and technical potential, ensuring utilization of alternative and renewable energy sources in all the spheres of the economy are covered during the preparation of the Strategy. 1 mln. manats has already been allocated from the President’s Reserve Fund for the preparation of the project of the Strategy.

In general, Azerbaijan has taken important steps to develop this field and some additional work will be executed in the near future. So in the month of April of this year the plant “Azguntex” was constructed and brought into use in Sumgait by the State Agency on Alternative and Renewable Energy Sources. There will be two production line functioning in the plant – solar modules and LED lamps lines. Solar modules line which started to be constructed in January of the last year and was created under the most modern technologies of the leading companies of European countries is already fully ready for use. These panels which have power from 42 Vt up to 250 Vt per each and supplied with 60 cells will be prepared pursuant to the international standards and will provide continuous power. Production of high-tech LED lamps is scheduled in the plant for more effective lighting dwelling houses, streets, squares, different public catering and social objects and for improvement of power provision. Thereby the project “A thousand houses – a thousand power stations” planned for dwelling houses is directed toward the provision of every house with a small ecologically clean and safe power station which will convert solar energy into electrical energy. The remained energy will be transmitted to the circuit and gotten back from the circuit in the night hours. This project planned for settlements constructed compactly in the first stage, has great possibilities to be extended in the future. Construction of solar panels on bridges and trade objects and construction of energy filling stations are important projects too. We can note that autocars and airplanes operated based on solar batteries are already being manufactured in the world practice.

Also, Gobustan Test and Training Centre on Alternative Energy will be fully set in operation in September, this year. At present, project capacity of the polygon is 5.5 mW. Of this, 2.7 mW fall on share of wind power, 1.8 mW – solar panels, 1 mW – biogas and biomass. The main purpose is – first to supply Gobustan district center with alternative energy and then supply all the region territory with renewable energy. Currently, energy supply of administrative buildings in the polygon is realized at the cost of solar panels. In September after the polygon is fully set in operation, the central part of the district will be supplied with alternative energy. At present time, the energy used during rush-hours in Gobustan is equal to 1.5 mW. This figure is 4 mW on the total district. After installation of the fourth wind turbine, production capacity of the polygon will hit 8 mW. And this will let supply the entire Gobustan district with renewable energy and also sell additional energy. Renewable alternative energy will be sold for 6 kopecks to the population and on the whole, this process will be realized in accordance with the tariff policy of the state.

Besides, the High Technologies Park is to be created by the State Agency in Sumgait and construction of 15 plants on the whole based on alternative and renewable energy and technology of effective use of the energy is being planned in the territory of the park. Optical lenses, glass and basalt fibers, accumulator production and other plants to be created in the territory of the park will promote production of necessary equipment for output and use of the alternative energy in the country. This will let both necessary equipment cost cheaper and its application be pretty easier. Also, organization of LED lamps production in the territory of the park is planned.

Also, in November, 2012, groundbreaking ceremony of biogas complex will be held in Samukh region and 2 years later, this complex will be put into operation. Animal-breeding economy will be established under the complex and the alternative energy will be obtained from fertilizers there. In general, biogas energy is reliable and very useful economically. Biogas obtained from the cattlebreeding, plantraising, food industry waste and other waste is like a small natural gas deposit. Because annual biogas production here can reach 1-20 mln. cubic metres. Id est, the power of an electric station constructed here can hit from 300 kW up to 10 MW.

We must note that at present domestic waste processing plants are being constructed in Azerbaijan. For example, in September, this year a plant on hard domestic waste waste incineration will start operating in Balakhani and as the result of the operation of the plant 500 thousand ton of domestic wastes and 10 thousand ton medical waste will be utilized and 230 mln. kW per hour of electric power will be produced in the final count. Another analogical plant will be constructed in Sumgait and the annual processing power of the enterprise will be 146 thousand ton.

Besides that, 8 small hydropower plants (HPP) with 11,7 MW total capacity will be set in operation in Azerbaijan in the current year.

On the whole, there is a State Program on the use of alternative and renewable energy sources in Azerbaijan for 2004-2013. Just within the years of 2009-2011 grant in the amount of 30,4 mln. manats as well as more than 11,7 mln. Euro has been allocated by the government for the development of this field.

Also, alternative energy sources are used in dwelling houses in Azerbaijan. For example, within the scope of the project “Baku White City” executed in Baku, installation of solar batteries with 144,1 kW daily capacity is planned for implementing greenery works and obtaining alternative energy. Also, it’s possible to see utilization of solar panels by the population in private dwelling houses in the settlements of Baku.

According to the prognosis of the government by 2020 the share of the alternative energy in the total amount of the energy produced in the country will reach 20%. While first this index was predicted as 10%. At the same time it is predicted that within 2015-2020 the share of wind power will fall to 32% from 50% in total energy production in the country and the main reason for it is related to the increase of the share of solar energy in the perspective. Because it’s expected that during 2015-2020 the weight of solar energy in total energy consumption will raise from 10% to 13% and the weight of bioenergy will raise from 20% to 24%.

We would like to note that at present, many countries are setting policy targets in the field of alternative energy to establish a 20% share of total energy production just from this field. One of the steps taken in this direction is investments in the field of alternative and renewable energy. EU targets to double volume of investment in renewable energy consumption, making it 70 billion dollars by 2020 and by that time it is expected to decrease the share of greenhause gases and energy consumption to 20% during the utilization of renewable energy sources.
Though by 2020 some European countries have set a goal to meet 30-40% of their energy requirements from alternative sources, some of them have targets to meet 100% of their needs from alternative sources by 2030. Thus 2 thousand MW energy will be produced from alternative energy sources in Azerbaijan for the time being. Id est, in this sphere Azerbaijan doesn’t lag behind Europe, it even leaves some regional countries behind. But Azerbaijan doesn’t want to repeat the mistakes of Europe in the development of mentioned field. Because European countries have used high tariffs and huge subsidies in this sphere. But in Azerbaijan alternative energy is planned to be relatively cheap.

Also, Azerbaijan plans appropriate concessions for proprietors to participate closely in this field. For example, innovations like setting proprietors free from taxes for 10 years, subsidies allocation and etc. can be applied. On the other hand, in order to advantage participation of the private sector in this field tariffs will be worked out for the energy obtained from alternative sources in AzerbaijanÅŸ In Europe depending on the source and place tariffs for alternative energy is 10-50 Eurocent per 1 kW/hour.

Besides, in order to determine effectiveness of alternative energy sources in the territory of the country and efficiency of the use of the sources depending on their location Cadastre of Alternative Energy will be established. About 200 observation stations will be set in 21 regions of the country for this purpose.

Also, at present, law projects “On Alternative Energy” and “On Use of Renewable Energy Sources” are drafted in the country and after the confirmation of these documents entrepreneurship subjects and individual economies will be able to use alternative energy broadly.

It’s worth noting that on the 1st of June, 2012 the president of Azerbaijan signed a decree on establishment of State Company for Alternative and Renewable Energy Sources. The new state company will be established under the State Agency of the same name.

As you see, development of this field will provide Azerbaijan with the opportunity to use its existing hydrocarbon reserves more economically. Taking into account that population is growing year after year and it is difficult to find a place for the construction of stations working with traditional fuel now, the resolution of problems of construction of alternative energy stations and thus minimizing the harm to the population and environment become urgent.

• Minister: Kyrgyz Republic is ready to participate in joint projects on the development of cross-border energy corridors
• Brent crude oil prices decline on global markets
• Ukrainian minister: We are strengthening energy cooperation with Azerbaijan