State Agency of ALTERNATIVE and RENEWABLE ENERGY SOURCES ABEMDA. Renewable Energy STRATEGY Of The Republic of Azerbaijan

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1 State Agency of ALTERNATIVE and RENEWABLE ENERGY SOURCES ABEMDA Renewable Energy STRATEGY Of The Republic of Azerbaijan

2 Background Starting point government programme strives for a comprehensive energy and climate policy Establishment the State Agency of RES to balance several targets, especially from EU directives December 2011 Order of the President of AR about Government Strategy on period

3 EU Framework EU s Climate and Energy Policy 20/20/20 Targets: a reduction in greenhouse gas emissions of at least 20% below 1990 levels 20% of energy consumption to come from renewable resources an increase in energy efficiency by 20 % by 2020 as opposed to a business-as-usual scenario 3

4 Azerbaijan Framework Azerbaijan s 2020 Targets: 20% share of renewable energy in electricity (10 % in 2011: 9.8% hydropower, 0.2% other RE) 9,7% share of renewable energy in all energy consumption (2.3% in 2011) 4

5 Azerbaijan Framework

6 Energy consumption in numbers As seen in the graphic above energy consumption in Azerbaijan was ktoe or 53.3 PJ in other words And 2.53% of this amount was a share of renewable energy Although we don t have the exact numbers for 2020 it is estimated that share of renewable energy will be increased 6

7 Share of Renewable Energy 7

8 EU Azerbaijan Cooperation Signing of Memorandum between AR & EU on 7 November, 2006 Goals of Memorandum: Modernization of the electric grid, enhance the security and reliability of the energy infrastructure Preparation of programmes and regulations for the development of renewable energy sector To achieve the efficient use of energy 8

9 Renewable Energy Strategy of Azerbaijan 29 December 2011, Order of the President of Republic of Azerbaijan on preparation of National Strategy on the use of Alternative and RES for Objectives: To create truly sustainable energy system for Azerbaijan Together with appropriate central and local organs of executive power and involving local and international companies, prepare and present national strategy for the use of alternative and RES for within 6 months. Determination of key directions for the production of electrical and thermal energy from renewables. Creation of legal framework conditions for the usage of REC To establish optimal conditions for the promotion of renewable energy sector (production, transfer, distribution and delivery of energy, efficient energy use and renewable sources for heating, and transport) 9

10 Structure of the strategic process Coordination Group Advisory Expert Group (SAARES) SAARES Related Government Organisations R&D institutions NGOs Regulatory Offices 7 Working Groups 50 members (stakeholders) Task: propose appropriate measures to reach targets 10

11 Structure. Main concepts of strategy a) Energy efficiency b) Renewable energy c) Security of supply d) Ecologic security e) Cost effectiveness Stabilizing the final energy consumption is the key function of the structure

12 Future effects of renewable energy strategy of Azerbaijan With implementation of the national strategy some terms such like green jobs, eco production, eco products are expected to be used in our society frequently. The strategy is a long-term process. So the effects could be measured in each stage of the process. New workplaces are expected to be created through implementation of National Strategy 12

13 SAARES Initiatives Establishment of Experimental Polygon and Training Center in Gobustan for researches of local grid connections with global electricity networks Establishment of hi-tech parks for technology transfers in RE and energy efficiency infrastructures. 13

14 Experimental Polygon and Training Center Hybrid Station 5.5 MW Implementation of new technologies Wind MW Solar MW Biomass - 1 MW Researches & Investigations Preparation and training of specialists RE Producers Database RE Promotion Center Local Networks and Dispatcher Center Implementation of RE technologies to Agriculture Sector 14

15 Local Networks and Dispatcher Center Management of local networks Connection of Local and Transmission Networks Control for RE Distribution Control of RE Transportation RES Measurement& Monitoring 15

16 DISPATCHER CENTER 16

17 Development of RE Customers Transportation Electrical Grid (Transmission) RE Producers RE Promotion and Development Fund SAARES RE Local Network Traditional Energy Payments RE Energy Data exchange Subsidies RE Autonomy network Small customers RE Customers 17

18 SUMGAYIT Hi-Tech Park Management Board of Sumgayit Hi-Tech Park, Sumgayit City Scienti f i c Council l Energy Technology Nano Technologies Sales and Marketing Financing PV Modules Innovation center PR Planning Inventors R & D laboratory Logistics Fundraising Transformers LED Technology Market researches & trainings Loan operations Unit DC Cabling Cristal growing Small Wind Turbines Repair and assembling Heat pumps Li-Accumulators 18

19 Azerbaijan Areas/Projects with High Potential for Wind Energy Type of potential Size, in MW Solar energy >5000 Wind energy >4500 BioEnergy >1500 Geothermal and geothermic >800 Small hydropower stations >350 19

20 RE Projects in Azerbaijan Project Name and Location Size (MW) Budget Potential investors Pirakushkul Wind Park Hovsan Sewage- Gas Station ABSHERON PV Solar Park Offshore Wind Park House / Power Stations mln Government of Azerbaijan (10-25%)+ KfW mln Government of Azerbaijan (10-25%)+POSCO mln mln Government of Azerbaijan (10-25%)+JICA Government of Azerbaijan (10-25%)+Private Investor mln Government of Azerbaijan + Private Investor 20

21 WELCOME to country with Great opportunities for Renewable Energy Investors AZERBAIJAN Thank you for your Attention. State Agency of Alternative and Renewable Energy Sources (ABEMDA) AZ1000, Baku, Azerbaijan 40, U.Hacıbayov str, House of Government Tel.: (+99412) Fax: (+99412)