Russian expert: Azerbaijan's alternative energy potential quite high

By Trend

Azerbaijan's alternative energy potential is rather high, considering climatic conditions, Head of the Center of Economic Strategies of the New Society Institute in Russia, Dmitri Zavorotni told Trend.

"The prevailing number of sunny days in summer season suggests high use efficiency of wind panels in Azerbaijan, and an average annual wind speed of 7-8 meters per second peculiar to the coast makes the development of wind energy economically profitable," he said.

“This seems to be apparent benefit, but we should note that for example, many European countries, actively developing wind and solar power generation, have much worse climatic conditions. The average annual wind speed in Denmark, which due to the wind provides already more than 40 percent of the total electricity supply, is noticeably lower than in Azerbaijan. Or Netherlands, being Europe's leading solar energy country, but can barely boast a large number of sunny days per year. And we know that the European green energy boom is largely provided by various types of state support. Therefore, Azerbaijan, due to its climate, has more favorable starting conditions. This is important, because alternative methods of generating energy still have a very high cost," said Zavorotni.

Regarding the export of solar panels, the expert considers this a good idea, but notes that the specifics of these products should be taken into account.

“The price is a decisive factor here. This is important, because production equipment and components are manufactured in China or European countries. Perhaps the import costs can be covered by cheaper assembly of the equipment and components and then it’s quite realistic to fill a certain gap in foreign markets. Anyhow, the own production of panels should focus first of all on domestic market. This is also the launch of new generation capacities and, maybe, it is worth to consider creation of conditions for the sale of panels to the private sector," he said.

Zavorotni said that alternative energy should not be either over- or underestimated.

"Its main function today is to increase the efficiency of traditional energy. Wind and solar energy can save a lot on burning coal, fuel oil and gas. And due to savings, this raw material can be provided with flexible tariffs, which will allow the population and business to reduce utility costs and increase costs in other sectors of economy, being a good impetus for economic development," he said.

He went on to add that hydropower sector in Azerbaijan should be modernized and developed.