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BP, Energy Ministry to sign memorandum on renewable energy by year-end

03 December 2018 [17:23] - TODAY.AZ

By Azernews


By Leman Mammadova

The long-term energy cooperation with BP has opened its track to alternative energy sector as well as oil and gas.

Memorandum of Understanding between BP and Energy Ministry will be signed by the end of the year, Bakhtiyar Aslanbayli, BP Azerbaijan's Vice President for Communications, External affairs, Strategy, told AZERTAC.

He also noted that a joint working group will be established for cooperation in the development of the renewable energy sources.

Recently, Energy Minister Parviz Shahbazov and BP's Regional President Gary Jones discussed cooperation opportunities in renewable energy sources and proposed to sign a Memorandum of Mutual Understanding.

Minister Parviz Shahbazov said that long-term and efficient cooperation with BP in oil and gas field would be useful in alternative energy sector, noting BP’s role in the transition to alternative energy sources.

Speaking about BP's commitment to promoting the future of BP, Jones said there is great potential for renewable energy cooperation, thus its realization will contribute to the increase in energy security, diversification of the economy and usage of gas resources in a higher margin.

During a presentation on Alternative energy opportunities in Azerbaijan, BP's responsible for development of alternative energy business, Marco Candeloro and Head of planning and commercial, Neil Henderson mentioned that renewable energy sources are highly strengthening their positions in the global energy balance as the energy of the future.

According to forecasts, up to 40 percent of the energy demands will be met by renewable energy sources by 2040. It was emphasized that Azerbaijan had the obligation to reduce greenhouse gas emissions by 2030 as the country signed Paris Agreement.

BP has been operating in the renewable energy sector for more than 20 years. Today BP is one of the best wind and solar power producers in the world although its investments in renewable energy resources are less than oil and gas.

Hydrocarbons, which are the traditional source of energy used by the world for many years, are gradually being run out and, thus, make the use of alternative and renewable energy sources urgent. By 2030, energy demand in the world will increase by 45 percent.

The favorable geographic location and climatic conditions allow the widespread use of environmentally friendly alternative energy sources in Azerbaijan.

Aiming to lessen its dependency on oil, Azerbaijan impelments a number of measures for further development of alternative energy sector.

The State Agency for Alternative and Renewable Energy Sources plans to implement 23 projects worth 13 million manats as part of the strategic roadmap for the development of public services in 2018-2020.

The projects cover the construction of 420 megawatt wind, water and biofuel power plants. The capacity of wind power stations will be 350 megawatts, solar power stations will be 50 megawatts, and biofuel power plants will be equal to 20 megawatts.

In January-September 2018, Azerbaijan’s power plants generated 17.2 billion kilowatt-hours of electricity that is 1.3 percent more than in the same period of 2017, according to the report of the State Statistics Committee.

Currently, the State Agency for Alternative and Renewable Energy Sources negotiates with a number of foreign investors to finance projects for wind power plants in the Caspian Sea to develop renewable energy supply.

Moreover, "green" power station is expected to be created at the Baku International Sea Trade Port.

It should be noted that Energy Ministry and Norway's Equinor plan to cooperate in alternative and renewable energy sources. This was discussed at a meeting on the status of alternative and renewable energy sources and identification of cooperation opportunities in September 2018.

URL: http://www.today.az/news/business/176628.html

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