Azerbaijan energy storage research and development
Azerbaijan has yet to tap into its significant renewable energy and energy efficiency potential, but in 2021 the Parliament approved several laws to this end. Higher ambitions and greater efforts to produce renewable energy and improve energy efficiency will also help the country conserve natural ga Contact online >>
Azerbaijan has yet to tap into its significant renewable energy and energy efficiency potential, but in 2021 the Parliament approved several laws to this end. Higher ambitions and greater efforts to produce renewable energy and improve energy efficiency will also help the country conserve natural gas and oil for exports while meeting GHG commitments.
Azerbaijan joined the UNFCCC as a non-Annex I country in 1995 and ratified the Paris Agreement in 2016. The government has outlined climate change mitigation actions in a number of sectors, including energy, and the Ministry of Ecology and Natural Resources is preparing both a national strategy for climate change and a national low-carbon strategy.
Because securing energy independence in the long term is central to Azerbaijan''s energy policy, it has recognised the value of diversifying its economy, increasing energy efficiency and supporting GHG emission mitigation programmes. It therefore supports the development of renewable energy sources with the objectives of:
Azerbaijan has significant untapped renewable energy potential, as it is a relatively sunny and windy country, and it also has sizeable hydro, biomass and geothermal resources. Although its energy policy focused until recently on developing the country''s significant oil and gas resources, it has been transitioning in the past few years: in early 2020, major contracts to build wind and solar power capacity were signed, and in May 2021 the Parliament approved a Law on the Use of Renewable Energy Resources in Electricity Production.
This new law will allow Azerbaijan to exploit its renewable energy potential by establishing a legal basis for project development and by introducing competitive bidding processes and support mechanisms for active consumers (i.e. prosumers). It also covers the development of other legislative documents, including a draft PPA and a connection agreement. In addition, rules on auctions and on applying net-metering and net-billing schemes have been drafted, and draft laws on electricity and gas supplies are currently under review.
As Azerbaijan is relatively sunny, it has excellent solar power potential. According to the Ministry of Energy, technical potential is around 23 000 MW. The country''s 2400 to 3200 sunshine hours annually compare well internationally, as does its solar intensity, estimated at 1500 to 2000kWh/m2. The best resources are in the central river valleys and the north and northwest.
Azerbaijan is relatively windy, especially along the Caspian Sea coast. According to the Ministry of Energy, the country has roughly 3000 MW of technical and 800MW of economic wind power potential. This economic potential could generate around 2.4TWh and conserve approximately 1Mt of conventional fuel, avoiding the corresponding CO2 emissions.
The Azerbaijan Scientific-Research and Design Institute of Power Engineering, in co‑operation with the Japanese company Tomen, determined that Absheron''s average annual windspeed is 7.9 to 8.1metres per second (m/sec). The country''s overall average windspeed of 6m/sec further confirms its economic and technical potential for wind power.
Although hydropower is Azerbaijan''s largest source of renewable energy today, its potential has not been fully exploited. According to the Ministry of Energy, the country''s technical potential for small hydro is 520 MW, which could generate up to 3.2TWh annually.
Azerbaijan''s Renewable Energy Agency under the Ministry of Energy (formerly SAARES) states that the country has up to 800MW of geothermal energy potential. Initial studies indicate that the 11geothermal zones available in Azerbaijan hold water of 30 to 100°C that can generate either electrical or heat energy, depending on the type of thermal water. According to the Azerbaijan National Academy of Sciences, water in the Guba region is 36 to 85°C, and up to 95°C in the Kura-Aras lowland.
Rapid growth in industry, agriculture and social services in Azerbaijan is creating new opportunities for electricity generation from biomass derived from combustible industrial waste, forestry and food processing waste, agricultural waste, and other biological substances. The Ministry of Energy estimates technical potential of 380 MW.
More than 2Mt of solid domestic and production wastes are disposed of annually at Azerbaijan''s waste treatment sites. Processing solid domestic and production wastes could help resolve challenges in heating public buildings in Baku and other large industrial cities.
Following adoption by Azerbaijan''s parliament in June 2021, the Law on Efficient Use of Energy Resources and Energy Efficiency entered into force. This law establishes rules for energy audits; energy management; energy services; production, transmission, distribution and storage efficiency; awareness raising; and other activities. It also provides for development of the country''s first NEEAP.
The argument for rapid action on energy efficiency is strong, building on newly adopted legislation and bearing in mind Azerbaijan''s Paris Agreement pledge to reduce GHG emissions 35% from 1990 to 2030. IEA member country experience shows that minimum energy performance standards are among the most effective and economical energy efficiency policy instruments.
The government should therefore introduce stringent standards across all sectors: buildings, vehicles, appliances and equipment, and should implement an effective mechanism for energy efficiency audits. To these ends, Azerbaijan needs to attract more private sector investments to modernise equipment, adopt energy-efficient technologies and set up a market-oriented management system.
The main objectives of Azerbaijan''s environmental policy are to protect existing ecological systems while realising the country''s economic potential, and to efficiently use natural resources to meet the energy needs of present and future generations. Ensuring sustainable development from an environmental viewpoint means avoiding or minimising any serious environmental impacts resulting from economic activities.
Environmental protection in Azerbaijan is governed by the Law on Environment Protection (1999), which establishes the main environmental protection principles and the rights and obligations of the state, public associations and citizens. It establishes requirements for environmental impact assessments; for environmental quality standards and permits concerning activities that affect the environment; for prevention and reduction of environmental pollution; and for environmental monitoring and control. It also addresses the role of the public and sanctions imposed on violators.
In contrast to transport, air pollution from stationary sources has decreased over the past 15 years, thanks to a switch from oil-fired to gas-fired power generation and to modern technologies in oil and gas production. Emissions can be reduced further by increasing efficiency, saving energy and using alternative energy sources.
Although the country does not currently have legally binding climate targets or measures, it has outlined climate change mitigation actions for its energy, oil and gas, residential and commercial, transport, agriculture, and waste sectors. These actions primarily entail technological improvements to reduce the negative environmental impacts of various sectors of the economy, together with some regulatory changes and public awareness measures.
The Ministry of Ecology and Natural Resources is also preparing a National Strategy for Low-Carbon Development and a Climate Change Adaptation Plan. Working groups have been established, made up of representatives of all the relevant ministries and state agencies.
About Azerbaijan energy storage research and development
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