Azernews.Az

By Nigar Orujova

Around 7 billion manats (about $8.9 billion) are needed to bring the share of alternative and renewable energy sources in Azerbaijan's energy production to 20 percent, an Industry and Energy Ministry official has said.

The State Agency on Alternative and Renewable Energy Sources, established in 2009, plans to increase the share of renewable energy sources to 20 percent by 2020 from the current 10 percent.

In accordance with the plans, the generation capacity of alternative energy sources will be brought to 2,000 megawatts by 2020, Ramiz Rzayev, head of the ministry's investment department and national coordinator of the INOGATE program, told media on Wednesday.

"Work is underway to establish the necessary legal framework to create the right conditions for investors," he said. "In particular, the bills "Alternative Energy" and "Energy efficiency" have been drafted. Up to 40 regulations have been prepared and reviewed. All these operations stipulate creating favorable conditions for investors."

Rzayev noted that at present the necessary work is being conducted to develop alternative energy. Various projects are being implemented in this field.

In particular, up to $100 million have been allocated from the country's state budget over the last four years to develop alternative energy.

Electricity produced at a hybrid plant in Azerbaijan will be supplied to the power grid of state-owned energy company Azerenergy soon. The facility, located in the Gobustan alternative energy ground, is the first of its kind in the South Caucasus region.

According to Jamil Melikov, Deputy Director of the State Agency on Alternative and Renewable Energy Sources, the hybrid power plant was built in the Gobustan region, about 60 km southwest of the center of the capital Baku.

The total capacity of the hybrid power plant is 5.5 megawatts of electricity. Power is generated by three wind turbines with total capacity of 2.7 megawatts, solar panels producing 1.8 megawatts and a biogas power plant with a capacity of 1 megawatt.

The total capacity of the hybrid plant is expected to increase to 8 megawatts, enabling to meet entirely the electricity demand of the Gobustan region, which has population of 46,000 people.

According to the Economic Development Ministry, Azguntex solar panels as well as Fuzuli and Gusar-1 hydropower stations were commissioned in the ​​alternative and renewable energy sector in 2012.

Operation of hybrid plants is the best option to develop alternative energy in Azerbaijan, recent research suggested. Due to simultaneous use of solar, wind, water and biomass energy, uninterrupted electricity and thermal power production can be ensured regardless of changing weather conditions and other circumstances.

According to Industry and Energy Ministry department head Tahir Jafarov, the production of electricity from alternative and renewable energy sources in Azerbaijan could reach 2.6 billion kilowatts an hour per year by 2015.

Azerbaijan plans to increase renewable energy production and to achieve 9.7 percent share in energy consumption by 2020 compared to the current 2.3 percent.