Energy Ministry drafts energy balance forecast for 2017

By Azernews

By Nigar Abbasova

The Energy Ministry of resource-rich Azerbaijan has prepared the energy balance forecast for 2017. The document has already been submitted for the consideration and approval of the Cabinet of Ministers.

The document was drafted based on such directions of the energy policy as meeting the country’s demand in energy resources, elimination of import dependence, ensuring energy security and provision of uninterrupted and reliable operation of the fuel-energy complex.

The document was prepared with the participation of representatives of the Cabinet, Economy Ministry, “Azerenergy” JSC and SOCAR.

The country earlier revised its forecast for oil output to bring the volumes in line with the landmark deal reached between OPEC and non-OPEC states to put ceilings to production.

Azerbaijan plans to produce some 39.797 million tons of oil in 2017, while the figure is 3.7 percent lower than the index of 2016. Average daily oil production will amount to 800,000-807,000 barrels in 2017 (in line with Vienna accord), while the daily output for 2016 stands at 842,000 barrels.

The country holds 0.4 percent of the world’s total proven oil reserves, and produce 1 percent of the world’s oil total output according to the BP Statistical review of World Energy 2015.

The volume of gas production in 2017 is forecasted to stand at 28.39 billion cubic meters (bcm), some 2.9 percent less than in 2016.  By late 2016, the volumes of oil extraction in the country will hit 41.307 tons, while gas production volumes will amount to 242.5 mcm.

The share of renewable energy in the total energy balance currently stands at 16 percent. The country aims to increase the share of alternative energy in its total energy balance. By 2020, the country plans to increase this figure up to 20 percent.

In addition, Azerbaijan intends to reduce carbon dioxide emissions by 35 percent by 2030, as the country is among the countries that signed the Paris Agreement, which envisages the reduction of greenhouse gas emissions to support “green planet”.

Potential of renewable energy sources in the country exceeds 25,400 megawatt.  The potential of solar energy in the country is more than 8,000 megawatts, while the capacity of wind power and geothermal energy are 15,000 and 800 megawatts, respectively.

The potential of bio-energy (a type of renewable energy made available from materials derived from biological sources) is estimated at 900 megawatts, while capacity of small hydroelectric power plants is 700 megawatts.

The energy balance allows to see the relative importance of different fuels in their contribution to the economy, assess the level of consumption in the energy sector and to make sound decisions on the planning of the national economy.  

The format of energy balance used in the country is in line with the recommendations of the International Energy Agency (IEA), while the template contains indicators on some 23 types of energy products.