Today.Az » Business » Indian company eyes cooperation in alternative energy
10 June 2019 [12:54] - Today.Az
By Leman Mammadova
Azerbaijan is currently developing energy sector not based on the oil and gas resources, and Indian companies are interested in sharing experience in this direction.
Indian businessmen led by Anil Jain, Secretary General of India's JITO APEX and Managing Director of Refex Group operating in the field of alternative energy, have visited Azerbaijani Energy Ministry.
Jain expressed his interest in cooperation in alternative and renewable energy sectors in Azerbaijan as well as in other areas.
In his words, Refex Energy was established to develop solar energy in India. The company provides maintenance and technical services for solar energy projects, and offers a set of proposals, including modern engineering, procurement and construction services for the construction of photovoltaic solar power plants.
Deputy Energy Minister Samir Valiyev, in turn, said that alternative and renewable energy development is one of the main tasks facing the ministry.
He noted that there is a great potential for the development of renewable energy in Azerbaijan, and the availability of favorable climatic conditions for the use of solar and wind energy allows implementation of projects in this direction.
Valiyev informed about the work done in the field of renewable energy, selection of the relevant areas, and conducting of measurements in these areas.
Deputy minister also stressed that the legislative framework is being drafted in this area, adding that renewable energy auctions are planned in the middle of 2020. In this regard, the country holds meetings with potential investors and discusses aspects of future work.
He also emphasized that Azerbaijan fulfills its commitments at the international level and it is important for the development of renewable energy sources in order to protect the environment, efficiently and economically use traditional energy sources, and increase the attractiveness of this area for investors.
The meeting also discussed Azerbaijan’s renewable energy potential, work done in the field of wind and solar energy, and opportunities for cooperation between the two countries.
It should be noted that current energy cooperation between India and Azerbaijan is based on the development of hydrocarbon fields.
The present Azerbaijani-Indian cooperation is at a high level. For instance, Indian company ONGC-Videsh is a stakeholder in the Azeri-Chirag-Guneshli (ACG) oil fields (2.72 percent) and Baku-Tbilisi-Ceyhan (BTC) pipeline (2.36 percent). It acquired $1 billion worth of shares in these projects.
India's GAIL Limited has signed a memorandum of understanding with SOCAR for the joint realization of the liquefied natural gas capacities through liquefied natural gas supplies and the global promotion of liquefied natural gas projects.
India's main import from Azerbaijan is crude oil. The volume of bilateral trade significantly increased from about $50 million in 2005 to nearly $250 million in 2015 due to the commissioning of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.
In 2018, the trade turnover between Azerbaijan and India increased by 84 percent, and by the results of January-March 2019, it increased by 66 percent and reached $300 million.
Azerbaijan imports many goods from India including pharmaceuticals products, engineering goods, automobiles and spares, agricultural and meat products and IT services.
Presently, as many as 230 companies with Indian capital operate in Azerbaijan, whose investments in the country's economy totaled $1.2 billion.
Azerbaijan and India are working on the preparation of an agreement on the promotion and mutual protection of investments.