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Azerbaijan presents preliminary report on renewable energy development project

04 April 2007 [19:22] - TODAY.AZ
Azerbaijan's Industry and Energy Ministry has delivered a presentation on renewable energy development project in the country.

Ministry's official Rafig Aliyev said the Asian Development Bank (ADB) and the Government of Azerbaijan signed a grant agreement for a US$900,000 technical assistance project to assess the potential and options for renewable energy development in the country.

The project, supported by the Government of Finland, developed an action plan to boost renewable energy development and design pilot projects for the most appropriate renewable energy options.

Philip Chang, ADB's Country Economist in Azerbaijan, said the Asian Development Bank allocated $22 billion for renewable energy projects in 31 countries. He said the preliminary research has been a success in Azerbaijan.

The energy sector plays a central role in Azerbaijan's economy, contributing about one third of GDP. Although Azerbaijan has been successful in engaging the private sector in the development and export of oil and gas, the domestic energy sector is in urgent need of investment to upgrade aging infrastructure and expand energy supply, especially in the rural and remote areas. Some regions of the country can barely meet basic energy needs, while unreliable electricity supply is constraining economic growth and limiting job opportunities.

"Renewable energy sources are a key to reducing poverty further in Azerbaijan, as it drives production, increases incomes, and creates new jobs. Developing alternative and renewable energy sources, mainly small hydropower and wind power, will be a competitive and environmentally friendly option to meet power shortages," says Philip Chang.

The Government of Finland is contributing a grant of $200,000 toward the project's total cost, while ADB is providing $500,000. The Government will provide $200,000 through in-kind contribution. The Ministry of Industry and Energy is the executing agency for the project, which is to be carried out over 10 months.

Swiss Entec and Indian DSCL are in the composition of the project consulting group.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, the ADB is owned by 65 members. APA-Economics

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