Azerbaijan, Iran to implement joint projects in alternative energy sector

/By AzerNews/

By Aynur Karimova

Azerbaijan and Iran have established a working group to implement joint projects in the alternative energy sector.

Jamil Melikov, the deputy head of Azerbaijan’s State Agency for Alternative and Renewable Energy Sources, told Trend on July 30 that the working group was established as part of a memorandum signed with the energy ministry of Iran.

“The working group will engage in organizational matters,” Melikov said. “It will offer various projects and discuss bringing investors, specialists from both sides, give recommendations so that through our joint efforts we can implement projects in Azerbaijan and Iran.”

He went on to add that the abovementioned memorandum also provides for a mutual exchange of information on current and future projects in each of the two countries. “Currently we are discussing organizational matters: the time and venue for the first meeting, and also the working group’s activity plan."

Melikov also noted that during an Azerbaijani delegation’s visit to Iran on August 3-4, the two sides expect to discuss acceleration of the working group’s activities and settle bureaucratic nuances.

The deputy head of the agency said that cooperation with Iran covers a wide range of activities.

"We are very interested in the exchange of technical data, in particular in the hydropower and geothermal energy sectors. The projects, in which we plan to take part, are associated with the global energy system, the so-called transmission lines and substations, the voltage level used for transmission. We will also offer small projects to the Iranian side. This is the "one house - one power station" project." We have already had some experience and will try to implement it in Iran," Melikov concluded.

The development of alternative energy is of significant importance for Azerbaijan and therefore the government seeks to introduce modern technology and involve foreign investors in its renewables sector.

Azerbaijan enjoys great prospects in this field. Thanks to natural conditions, the total potential of alternative and renewable energy resources in Azerbaijan exceeds 12,000 megawatts.

The State Statistics Committee of Azerbaijan has said that the country produced 5.2 million kilowatt/hours of electricity from alternative resources from January to June 2015.

In 2014, investments in the development of Azerbaijan's alternative energy sector reached 63.6 million manats ($60.6 million).

Recently, the Turkish Turcas Enerji Holding and Azalternativenerji under Azerbaijan's State Agency on Alternative and Renewable Energy Sources signed a memorandum of understanding for cooperation in the renewables sector.

According to the document, the sides will jointly invest in the construction of solar, wind, and geothermal power plants in Turkey and Azerbaijan, along with implementing other projects. The contract is valid for a period of three years from the date of signing.

Azerbaijan’s State Agency for Alternative and Renewable Energy and the Georgian Energy Ministry will establish a joint working group in the field of alternative energy as well.

It is expected that the increase of alternative energy capacity will reduce the use of hydrocarbons in the oil-producing country, making it possible to redirect them to overseas markets and increase Azerbaijan’s export potential and revenues.