Azerbaijan’s power sector continues to grow
By Nigar Orujova
Azerbaijan, working hard to develop the non-oil sector by diversifying the country’s economy, can be proud of its power sector. Today, the most developed country of the South Caucasus is able to fully meet its own energy needs, and seeks to supply power to the European market.
The country was able to build a strong power potential in less than 20 years, conducting reconstruction and renovation of old generating capacities and creating new ones.
Currently, the country’s energy system is based on the capacity of 14 thermal and over 10 hydro power plants. Over the past 10 years, the power grid of the country increased by 40 percent, exceeding the 7,100 megawatts, which allows not only cover domestic needs, but also forms export potential of the country.
Power grid allow Azerbaijan to create an annual export potential of several billion kilowatt/hours. To export surplus electricity, Azerbaijan eyes several major projects, including the Energy Bridge Azerbaijan-Georgia-Turkey, which will allow Azerbaijan to export to Europe about 700 megawatts of electricity a year.
In turn, the project on synchronization of energy systems of Azerbaijan, Russia and Iran will allow for the mutual exchange of power among the three countries, as well as to connect other countries in the region to the project. Moreover, Azerbaijan as a transit country will receive dividends from electricity transmission operations.
The implementation of regional projects will further increase the export performance of electricity and will further improve the profitability of the industry.
In 2014, the country produced more than 23.1 billion kilowatt/hours of electricity, which is 6.7 percent more than in 2013. A slight decrease is observed only in the first 11 months of 2015.
Since early 2015, Azerbaijan produced 20.84 billion kilowatt/hours of electricity compared to 20.91 billion kilowatt/hours in the same period last year. The State Statistic Committee said 18.39 billion kilowatt/hours of the total volume of electricity produced in January-November, accounted for thermal power plants, which is 1.5 percent lower than in January-November 2014.
The works to increase the capacity of the energy system are continuing. By 2020, the country plans to put into operation an additional capacity of 2,400 MW.
Moreover, Azerbaijan is now developing its energy system by alternative ways. Currently, the share of alternative energy in the total energy production in Azerbaijan exceeds 7 percent. By 2020, the country plans to increase this figure up to 20 percent.
Today, the country requires huge investments to further develop the power sector and up power generation capacity per capita to the level of developed countries in the near future.