/By AzerNews/

By Amina Nazarli

Project on establishment of the first offshore wind power in the world has been submitted to the Azerbaijani Government.

Jamil Malikov, the deputy head of the State Agency on Alternative and Renewable Energy Sources told Trend that currently the project is being considered by several ministries.

“The project has already received positive feedback from the Ministries of Environment and Natural Resources, Finance, Economy and Industry, and Energy. This enables us not stop and continue work on this project,” Melikov said.

The 200-MW project in the Caspian Sea will be built between the two oil-extracting platforms near the Pirallahi Island.

Wind farms on platforms in the Caspian Sea will allow the country to export this energy to the neighboring countries andthe country will be able to become a major power exporter in the future, according to experts.

Cost of this major project that has already attracted interests of investors from Germany, China and Arab countries is estimated at 450-500 million manat ($430-$477). Funds will be attracted by export credits. The payback period of the project is 10 years.

Full development of the project will be completed in the 2017-2018. The project is expected to take 2.5-3 years.

Earlier, Agency Head Akim Badalov noted that usually such projects are estimated at 900 million - $ 1 billion in the world, adding that the cost of the project can be halved through the use of wind energy.

As part of the project it is also expected to build a road between the Pirallahi and Chilov islands.

The project will be consisted of three stages. The first phase includes the construction of the station, and at the second stage the construction of roads will be implemented. The third stage will include establishment of the distribution network.

The total potential capacity of renewable energy sources in Azerbaijan exceeds 12,000 MW. Solar accounts for most of this potential at 5,000 MW, while wind accounts for 4,500 MW, biomass for 1,500 MW, geothermal energy for 800 MW, and small hydro for 350 MW.

The electricity export potential of Azerbaijan has been calculated at six billion kilowatt hours. The installed capacity of Azerbaijan’s power supply system is 7,200 megawatt, which now produces annually about 24 billion kWh, allowing Azerbaijan each year to export 2.1 billion kWh.