Azernews.Az

By Narmina Mammadova

The European Bank for Reconstruction and Development (EBRD) will consider the possibility of financing the renewable energy projects in Azerbaijan, after they are developed as part of the bank's technical assistance, head of the EBRD Baku office Ivana Duarte told Trend.

Presently, EBRD pays special attention to development and capacity-building in the Agency for Regulation of Energy Issues of Azerbaijan, she said, adding that cooperation with Azerbaijan's Ministry of Energy is also at a high level.

Duarte noted that the bank supports the revision and development of the necessary legal and structural bases for renewable energy in Azerbaijan.

In addition, the power supply systems are being studied and all these activities are funded through the EBRD technical assistance, Duarte said.

Once the projects are ready for implementation, EBRD will consider them for possible financing, she added.

Azerbaijan aims to increase usage of renewable energy sources and the country has all opportunities for this.

Azerbaijan is currently taking serious steps to develop alternative energy. To this end, negotiations are underway with foreign companies and investors, including companies from China, the UAE, the U.S. and the EU.

For example, the Norwegian company DNV GL will help create a support system and a legal framework in Azerbaijan's alternative energy sector.

The capacity of the energy system of Azerbaijan is more than 6,000 megawatts. At the same time, according to experts, the potential of renewable energy sources in the country is more than 25,300 megawatts. Most of the country's potential in this area falls on solar energy, while it is estimated at 5,000 megawatts.

Some 4,500 megawatts accounts for wind power, 1,500 megawatts -- for biomass, 800 megawatts -- for geothermal energy, and the remaining 350 megawatts -- for the small hydro power plants (HPP).

In accordance with the Decree of President Ilham Aliyev, in 2013, the State Agency of the Republic of Azerbaijan on Alternative and Renewable Energy Sources was created, and a number of documents were signed and programs were adopted to develop this industry. These documents provide for bringing alternative sources to 20 percent of the total energy consumption of Azerbaijan by the end of 2020. It is obvious that the development of alternative energy is included in the number of priority directions of state development.

The usage of renewable sources is gaining more and more supporters, and it is obvious that the future of humanity will largely depend on this method of energy production. Today, 80 percent of world energy consumption comes from hydrocarbons (oil, natural gas and coal), and 20 percent from renewable sources and nuclear energy. Energy consumption in the world is growing every day, and traditional energy sources are rapidly being exhausted.

According to the forecasts of the International Energy Agency (IEA), 60 percent of world energy will come from hydrocarbons in 2040, and the largest percentage will come from natural gas, while 40 percent from nuclear energy and renewable energy sources, mostly from wind and solar energy.

Ecologically pure infrastructure of the production of this type of energy is of great importance.

Alternative energy sources are safe for humans and the environment, as they do not produce harmful emissions into the atmosphere. On the contrary, hydrocarbon-based energy is the main source of pollution of the Earth’s atmosphere; it can lead to irreversible climate change on the planet.

---

Follow us on Twitter @AzerNewsAz