Azernews.Az

By Nigar Orujova

Over 100 million manats ($127 million) has been invested from the public fund in the development of alternative and renewable energy sources in Azerbaijan.

This was stated by the Head of the State Agency for Alternative and Renewable Energy, Akim Badalov, during a regular business forum organized by Caspian European Club on September 23.

The country has created favorable conditions for the development of this new field for Azerbaijan."Companies operating in this sector are exempted from customs duties and taxes," he added.

Devices used for energy efficiency and alternative and renewable energy sources application as well as their spare parts and components for their production are exempt from the payment of customs duties and VAT on imports for 10 years by decision of the Cabinet of Ministers from April 25, 2014.

Preferential tax regime entered into force after 30 days from the date of signing of the solution.

Exemptions will be granted only if the importers have voucher and license (special permit) to operate in the field of alternative energy and energy efficiency issued by the State Agency.

Benefits involve the nomenclature, including, in particular, water turbines up to 10 megawatts, capacitors for geothermal power plants, generators for solar stations, probes and apparatus for heat pumps.

Currently, the share of alternative energy sources in Azerbaijan is less than 1 percent, and accounts for small hydro power plants.

Today, the European and other developed countries agreed on annual rising of the share of alternative energy up to 10-15 percent of total electricity production.

It is planned to build up to 100 objects for alternative energy for 5 years in Azerbaijan, according to preliminary research.

The State Agency is developing projects aimed at increasing generating capacity, Badalov said. At present, the Agency is at a stage of beginning to implement projects abroad, he added.

"We are currently considering a project for 2015. It concerns the creation of generating capacity of 300 MW with use of solar, thermal and wind energy, and biomass energy," he said.

Active preparatory work is underway to connect the first large wind plant with capacity of 50 MW in the territory of settlement Yeni Jashma with network of national energy operator Azerenerji, Badalov noted.

Work is also being conducted on the design of solar power plants in seven regions of the country, where these stations will be established by early 2015. Options of power generation at the expense of biomass energy in Shaki and Siyazan regions are under discussion as well.

"We are working with German experts, and establishing of the stations in these regions is expected already next year," he stressed.

Moreover, Badalov noted that works on engineering of small hydropower plants in several regions of the country are going to start in the near future.

Small hydroelectric power stations can become profitable for the Agency not only in Azerbaijan but other countries. Meanwhile, Iran has also proposed to join to the national program on the construction of small hydropower plants at the Caspian coast.