BAKU, Azerbaijan, February 8. Azerbaijan is
working actively in several instructions to spice up its vitality
provides to companions, each securing their vitality safety and
strengthening its personal economic system, Elnur Soltanov, Deputy Minister of
Power of Azerbaijan informed Trend in an unique interview.
Inexperienced vitality “corridor” as analogy to Southern Fuel
Hall
Azerbaijan has been a dependable companion when it comes to oil and,
lately, when it comes to fuel. A lot of the oil that Azerbaijan is
exporting goes within the European course. The identical factor is
with pure fuel. We plan to mainly double our fuel exports to
the European market by 2027. Azerbaijan is already exporting extra
than 10 bcm to Europe – in 2022 it has been 11.4 bcm. This yr, we
plan an identical quantity of fuel to the European nations. And once more,
that is on high of what we’re exporting to Georgia (2.8 bcm in
2022), and Turkiye (8.4 bcm). So, mixed, we’ve already
exported 22.6 bcm. In 2023 the whole export quantity is predicted to
exceed 24 bcm.
As you already know, for a few years now, we’ve been holding the
Advisory Council conferences of the Southern Fuel Hall (SGC) in
February. This yr, we’ve concurrently held the ninth
Ministerial Assembly of the Advisory Council the SGC, and the first
Ministerial Assembly of the Advisory Council on Inexperienced Power.
Relating to the current settlement signed between Azerbaijan,
Georgia, Hungary and Romania to construct a cable below the Black Sea –
this could very effectively transcend the nations that already signed this
doc, as a result of electrical energy connectivity throughout Europe is sort of
superior, and when somebody enters Europe’s grid system the
electrical energy produced in Azerbaijan can find yourself in any a part of
Europe, however the supply will probably be Azerbaijan’s renewable vitality.
Nonetheless, this endeavor requires a really thorough evaluation.
There was the concept to attach Georgia and Romania, and we’ve
proven curiosity on this challenge from the start. However then, as we
are discovering our huge offshore wind sources, we perceive
that the initially deliberate connection is probably not sufficient. A a lot
greater transmission capability needed to be developed with a purpose to
join Caspian to the European nations. And, once more, the selection
of Romania is about our nice partnership, and likewise, to a sure
extent, this selection is decided by geography, as a result of, Romania,
given the Black Sea atmosphere, turns into the most effective
candidates, and Hungary is mainly a gateway to your complete
Europe. Once more, as we’ve signed this doc, all European
nations are our potential companions – that is the idea of our
strategic imaginative and prescient.
Methods for Azerbaijani inexperienced vitality to achieve
Europe
Azerbaijan is exporting electrical energy to European nations as
effectively, however the principle nations have been Georgia and Türkiye, and the
main connection that we’ve on this course is the strains that
goes to Georgia, after which – from Georgia to Türkiye.
There are loads of technical points as effectively, as a result of Georgia and
Azerbaijan are synchronized, which signifies that exporting electrical energy
or buying and selling electrical energy between these two nations is technically
simpler and cheaper, however Türkiye is in a distinct zone, which
requires dearer connection infrastructure, rising the
value for the producer, however nonetheless, there’s a connection and we’re
mainly exporting round 300 MW to 400 MW of electrical energy to
Türkiye.
The doc that we signed with the European Fee in
July, nonetheless, talks about two electrical energy corridors: considered one of them
via Black Sea, which actually turns into a pure hall between
Caspian and European nations, and the opposite one is thru
Nakhchivan to Türkiye and the remainder of Europe, which, mainly, is
a component of the Zangazur hall.
In that course, we’re already constructing 330 kVt substation in
Jabrayil area. Why is it necessary? As a result of Azerbaijan’s
electrical energy grid is predicated on substations with the identical kind. And by
constructing in Jabrayil that form of station signifies that finally we
are planning to construct one other one in Nakhchivan, connecting our
exclave to the principle land, and which will probably be related additional to
Türkiye, and finally to European nations. It would give us an
means to export round 1,000 MW of electrical energy, and this can be a
enormous quantity. That is greater than what we’re exporting right now. However, at
the identical time, it additionally will increase the reliability of electrical energy
system within the liberated territories, so we’re doing two issues
with one challenge. Furthermore, this substation may even be necessary
when it comes to the development of solar energy station that we’re
engaged on with BP in Jabrayil area, so maybe three main
points are solved with one challenge.
I wish to level out that we’re not planning to export simply any
form of electrical energy – the principle supply of electrical energy we’re
planning to be exporting via these strains, in all probability and
hopefully all of them – goes to be inexperienced electrical energy. That is
what Europe wants, that is what the world wants, and that is what
Azerbaijan wants for a number of causes, considered one of them being the actual fact
that in Azerbaijan, not like many different nations, additionally European
nations, most of electrical energy is produced by burning pure fuel –
round 95 p.c. In lots of European nations they don’t do this,
as a result of fuel could be very costly, and so they use a lot dirtier coal
as a substitute. So, utilizing pure fuel is nice for the atmosphere, that is
our contribution to world local weather mitigation, however on the identical time
it prices Azerbaijan very helpful commodity, which may be exported
and earn loads of arduous foreign money. So, by reliance on inexperienced vitality,
we will probably be saving fairly sizable quantities of pure fuel, which may
be exported, bringing extra income to the nation.
Azerbaijan is about to carry the primary public sale for
renewable vitality tasks
This course of is about to be finalized, we have been truly planning
to carry the primary public sale within the first half of 2023. We already
outlined the realm the place it’s going to be realized; in all probability it would
be a photo voltaic website at first, however finally wind energy crops will probably be
thought of too.
The difficulty is that in Azerbaijan vitality costs are comparatively
low, and, subsequently, when websites are smaller, traders will not be in a position
to capitalize on economies of scale, and matching the tariff costs
in our nation turns into very troublesome for them. Thus far in our
agreements with Masdar and ACWA Energy, we’ve been capable of stay
inside the framework of the prevailing tariffs within the nation,
which is round 3 cents. And that is actually value, but when
the websites get smaller then costs go up. So we have to discover a proper
stability right here.
Azerbaijan selected to go a distinct street. We technically held a
very clear choice course of, on account of which we granted
a 230 MW solar energy plant to Masdar, and 240 MW wind energy plant
to ACWA Energy. We made it clear to all competing vitality
firms that the principle choice standards is the tariff provide
they’re to make, different issues being equal. And it’s on the idea
of this criterion that we finally selected Masdar, ACWA Energy and
BP, and each different participant knew this.
So there are completely different legit choice processes. Holding
auctions has at all times been part of the plan and we’re very glad
that we’re getting near realizing that possibility too.
Prospects for the manufacturing of inexperienced hydrogen in
Azerbaijan
I personally take part within the conferences with the European Financial institution
for Reconstruction and Growth (EBRD) concerning the hydrogen
report for Azerbaijan. That is additionally necessary as a result of it’s considered one of
the deliverables of the state technique for 2022-2026, stemming from
nationwide priorities for social financial improvement. Hydrogen is
fairly costly and crucial model of it, inexperienced
hydrogen, is the costliest kind of hydrogen. Hydrogen might be
produced from methane, and the required vitality could or could not come
from fossil fuels – briefly, there are loads of varieties and colours
of hydrogen. I keep in mind in our discussions with the EBRD, the place
they targeted someway on blue hydrogen a bit extra, which is about
mainly utilizing pure fuel capturing essentially the most unwelcome byproduct
– carbon dioxide. It’s an interesting concept particularly as a result of we
have each considerable pure fuel in addition to depleted oil and fuel
fields the place the captured carbon dioxide might be saved. Nonetheless,
we wish to deal with the manufacturing of inexperienced hydrogen, the cleanest
type of it, produced by utilizing water, and, as a supply of vitality,
renewable vitality. That is the costliest method, however this can be a
future, and that is the place we wish to go. Presently, we’re on a
essential stage of the feasibility examine.
Agreements with Masdar and Fortescue Industries contain the
improvement of huge renewable vitality sources, together with offshore
wind within the Caspian. We imagine that in tasks of such scale the
manufacturing of hydrogen may make financial sense, together with with
regard to balancing points. Given the specifics of some tasks,
utilizing hydrogen can truly carry down the general value for them.
So, there are specific niches to take advantage of.
The EU is principally excited by inexperienced hydrogen. Among the
potential traders in Azerbaijan have already outlined this discipline
as considered one of their priorities. So, there are fascinating synergies
right here. In fact, this can be a very advanced and costly concern, however we
are retaining our choices open.
Untapping huge offshore wind potential on the
Caspian
The Caspian has been a supply of inspiration for Azerbaijan, a
supply of earnings attributable to its fishery sources, after which it grew to become
necessary due to Oil Rocks in Fifties and world-famous
Azeri-Chirag-Gunashli discipline within the Nineteen Nineties, after which one of many
largest fuel fields on this planet – Shah Deniz has been found
there. Now it’s actually a blessing that the identical Caspian is discovered
to have an enormous potential for offshore wind vitality improvement.
Preliminary analysis says that technical potential for offshore
wind is 157 GW. As tasks develop, we could have extra concrete
figures. In any case, we imagine that, and the preliminary analysis
reveals the identical, that we’ve extra offshore wind than we’ll ever
be capable of make the most of domestically.
We now have already signed related offers with Masdar and Fortescue
Industries on the whole put in capability of 22GW. For comparability,
your complete put in capability of energy manufacturing in Azerbaijan,
together with all renewable and non-renewable, is 8 GW. Out of these 22
GW, about 16 GW account for offshore wind vitality manufacturing. We
have additionally signed an settlement with ACWA Energy on the development
of an offshore wind farm.
There are numerous components we’ve to take into accounts. However
crucial concern with offshore wind is that it’s extra
costly than onshore wind, or solar energy. And we’ve to determine
out how you can remedy this drawback. The factor that doesn’t assistance is the
incontrovertible fact that Azerbaijan is a landlocked nation. The deliberate wind
generators are enormous. We’re speaking concerning the size of a single
blade that reaches about 100 meters. And, until you produce them
domestically, you’ll have to primarily depend on Volga-Don Canal to
carry them in, and the present struggle that is happening doesn’t assist
both. Bringing them over land is feasible however technically
difficult. So, we’re actually serious about maximizing the
home manufacturing, which can assist mitigate the results of
being landlocked.
There are nice challenges and alternatives, and along with
our companions we plan to attain nice outcomes.
240 MW “Shafag” (Dawn) solar energy plant in
Jabrayil / Zangilan zone – results of fruitful cooperation with
BP
The world round 900 hectares in Jabrayil area has been cleared
of mines. In some locations the realm needed to be cleared of mines to the
depth of 4 meters, which is quite a bit, and only a few units in
Azerbaijan can do this. The demining has been a giant problem, however
the Azerbaijan Nationwide Company for Mine Motion (ANAMA) has finished a
nice job. We additionally needed to guarantee that this land isn’t helpful
for agriculture, thus, there are different tasks that we’ve to
align ours with. In any case, we’re glad that BP affiliated
technicians are anticipated on the bottom in February.
Essentially the most thrilling half about BP’s challenge is the truth that it’s
form of a “virtual” energy plant. It’s envisaged that the inexperienced
vitality produced in Karabakh will probably be delivered to Absheron, to grease
and fuel processing terminal, and decarbonize the method.
Oil and fuel processing is a really vitality intensive course of, and
normally the electrical energy required is obtained by burning fossil
fuels fairly inefficiently. By decarbonizing this course of, BP and
its companions, together with SOCAR and Azerbaijani Authorities as a
entire, may probably keep away from sure taxes in export to be
imposed in Europe. Evidently, that is nice for the
atmosphere, and saved fuel will get again to shareholders, which may
be a supply of extra income.
There may be additionally an incredible symbolism, since, if an organization of the
caliber of BP is investing in Karabakh, it signifies that the peace
achieved within the area is there to remain. That is additionally a sign to
the worldwide firms that it’s secure to spend money on the liberated
territories of Azerbaijan.
BP’s presence in Azerbaijan within the 1990’s performed its function in
phrases of strengthening our sovereignty, and an identical course of is
now taking place when it comes to reviving the liberated territories. We
anticipate that in about 2 years’ time renewable vitality will probably be
produced on this plant.
Our doorways are open to any companion keen to spend money on
Azerbaijan’s inexperienced vitality sector. The preliminary record of the businesses
wanting to take part was a lot bigger and we proceed the dialogue
with a lot of them to this present day. The public sale course of may even assist
when it comes to revealing the true curiosity on this regard. In time you
will probably be listening to about new tasks. As an example, one European
company can be within the realization of a challenge,
just like what BP is finishing up in Jabrayil, a form of a
“virtual” plant.
Increasing solar energy manufacturing past
land
A challenge of floating solar energy plant with a capability of 100
kW, applied as a part of the “Data alternate and technical
assist for the event of floating photo voltaic panels” pilot challenge
applied with assist of the Asian Growth Financial institution (ADB), is
already within the making. This is part of technical assist from the
ADB, so we’re not investing something. The intention of this pilot
challenge is to know execs and cons, and lay the bottom for the
enlargement of this initiative into 50 MW energy plant.
Extra on cooperation with Arabian
companions
An ongoing 230 MW Garadagh solar energy plan challenge with the
UAE’s Masdar, in addition to a 240 MW Khizi-Absheron wind energy plant,
developed by Saudi Arabia’s ACWA Energy will produce electrical energy
fairly quickly. The electrical energy from the Garadagh plant will probably be
produced in coming months. Offshore wind improvement will take a
little extra time. These two tasks replicate the belief between the
leaderships of Azerbaijan and the UAE and Saudi Arabia.
We’re very glad that SOCAR is getting into this settlement with
Masdar as an financial companion, turning into a part of the deal in its personal
quest to grow to be an vitality firm of the twenty first century.
Following the trail of the forefathers in exploring
new endeavors
We’re shifting alongside the trail of our forefathers who began the
oil journey of Azerbaijan about 170 years in the past, and giving our
nation a progressive push that continued for many years leading to
far more than the manufacturing of oil.
Within the early Nineteen Nineties, late President Heydar Aliyev did one thing
unthinkable, realizing unimaginable. In consequence,
Azeri-Chirag-Gunashli (ACG), in addition to Baku-Tbilisi-Ceyhan (BTC)
grew to become realities, which was one thing a lot past oil; a window to
the surface progressive world, an anchor of our sovereignty. In
hindsight, what occurred could appear to be inevitability, however each
single side of it was on account of sleepless nights, limitless
hours of arduous work and phenomenal will and functionality of the
management of Azerbaijan.
Then, in 2000s we witnessed, how the success in our oil saga has
been repeated when it comes to our pure fuel. There have been loads of
naysayers, many disagreed, however President Ilham Aliyev pursued the
coverage in a decided and well-calculated method, and time is
proving that this has been a visionary path, putting Azerbaijan at
a middle stage of debates about European vitality safety
structure.
What’s being finished now could be the subsequent stage of this vitality journey.
The XXI century is the time of inexperienced transformation and it’s our
obligation to proceed the success story within the new century. The
historical past helps quite a bit. Mainly, a mannequin created very long time in the past
and examined no less than yet another time, is being utilized to the present
day. After we succeed, this can primarily be as a result of already
established path by and ever progressive imaginative and prescient of the management
of Azerbaijan.
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