EU-Azerbaijan MoU on energy is victory for both sides – Matthew Bryza

“This has been the big goal of Azerbaijan as well to increase its wind and solar power generation and the potential in Azerbaijan of course, is enormous for both wind and solar. I know that the intensity of the sun in southern parts of Karabakh and Nakhchivan is really high and therefore, creates great potential for solar power. Of course, everybody knows how sustainable, strong winds are on the Absheron peninsular, in Baku and elsewhere in Azerbaijan. This seems to be a really strong area of cooperation now going forward between the EU and Azerbaijan meaning renewable energy,” said the former US ambassador.

Bryza pointed out that the primary focus of the MoU is on delivering more gas via Azerbaijan to the EU now and in the near future.

“The MoU talks about the joint commitment to expand the Southern Gas Corridor into perhaps the Western Balkan and it talks about the EU pledging to continue to find financing for these projects, such as the expansion of the Southern Gas Corridor. That has been a real interest of SOCAR. Again, as it seemed like maybe the EU was going to try to stop consuming and investing in natural gas. So, it is very important for SOCAR that the EU is saying that it is committed to investing in expansion of the Southern Gas Corridor. Also, interesting to me is the mention of possibility of cooperating to develop electricity links for green energy between Azerbaijan and under the Black Sea to the EU and also through Nakhchivan. That’s something to keep an eye on,” he added.

Bryza notes that both sides commit to reduce methane emissions, which means by reducing the amount of natural gas that escapes when natural gas or oil are produced.

“Some of that natural gas escapes when there is gas associated with oil production and then that natural gas is either burned or simply vented into the atmosphere. In this MoU both sides pledge to capture that gas and use it rather than sending it into the atmosphere. Natural gas also escapes during pipeline operations and other ways of natural gas production operations. So the two sides pledge to cooperate to reduce such emissions in accordance with the global methane reduction pledge. So, it is a very forward-looking agreement very balanced between natural gas and renewable energy. The headline goal where everyone is focusing on in the media is this pledge of Azerbaijan to provide 20 bcm by 2027. Azerbaijan has a need to produce more natural gas. Azerbaijan needs to achieve that production level, to get 10 billion cubic meters more for the EU. It is going to require a lot of investment in Azerbaijan in new gas fields. It is going to require trading of natural gas that is produced by other countries like Turkmenistan with Azerbaijan serving as a transit country. The MoU says through production and trade to make sure that the EU can obtain another 10 bcm through bilateral trade, including exports from Azerbaijan, but not only,” he explained.

One final point is that the MoU also talks about working together to protect coastlines and environment in general from energy production and oil spills.

“I hope that Azerbaijan working with EU can launch a regional effort in the Caspian Sea to protect the Caspian marine environment against further oil spills. It has been an enormous amount of spills from Soviet-era pipelines. EU, Azerbaijan and Turkmenistan could cooperate on preventing and minimizing negative impact of oil spills in the Caspian Sea,” Bryza concluded.