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EU reduces fund which assists to Azerbaijan within ERSP

23 April 2013 15:31 (UTC +04:00)

Baku. Ali Ahmadov - APA-Economics. The European Union allocated final tranche in amount of €5.75 mln within the Energy Reform Support Programme (ERSP).

According to APA-Economics, it was noted at the press conference that ERSP is an assistance programme of EU to Azerbaijan related with reforms strategy in renewable energy sources and energy effectiveness. Within the programme, two tranches with €3mln for each were paid to Azerbaijan in 2010-2011. Taking the final tranche, EU’s funds for Azerbaijan reached € 11.75 mln.

Head of the EU delegation to Azerbaijan Roland Kobia noted at the press conference that Azerbaijan has alternative energy sources along with oil-gas reserves. According to him, it’s possible to use wave energy along with wind, solar, biogas energies: “This potential must be realized in the next years”. Informing about approach to this sphere in Europe, Kobia said that according to EU targets, at least 20% of energy to be used in the continent in 2020 must fall to share of alternative energy.

But the ambassador noted that increase of share of alternative energy will not reduce EU demand for energy carriers – oil and gas. Answering APA-Economics’ question, the Ambassador said that reduction of gas production in Europe and limitation of usage from NPS increase the demand for additional energy sources. On the other hand, economic growth also is expected in Europe and this will increase the demand for energy and gas: “Therefore, we need Azerbaijani gas”.

Director of State Agency on Alternative and Renewable Energy Sources Akim Badalov mentioned that the works on alternative energy in Azerbaijan has started since 70s of last century: “In that time, Azerbaijan produced solar panels and these were used in soviet cosmic industry. Moreover, solar energy plants were installed in three buildings in Baku. But, the interest in this sphere reduced later”.

Note that, one of the main demands of the mentioned project is development of comprehensive, integrated and transparent energy strategy considering effective use of renewable energy resources and energy. Badalov noted that the draft strategy had already been developed and submitted to the presidential administration. The document reflects alternative energy resources, methods of use, to-be-invested money and etc: ‘In addition, the tariff system for energy, produced through alternative ways has been submitted to the government’.

Note that, Azerbaijan did not fulfil some obligations within the framework of ERSP and it resulted with that the EU invested 2.25 mln euros less than the previously planned amount. Though it was planned to pay 14 mln euros to the Azerbaijani side within the project, this sum fell to 11.75 mln euros in the end.

Kobia said that incomplete payment of the considered funds is related to falldown of some works by the Azerbaijani side.