Azerbaijan diversifies energy sources to export to Europe

2024-08-15 14:48:00, Ekonomi CNA

An international feasibility study has confirmed the economic and technical viability of Azerbaijan's green energy cable project in the Black Sea. According to the Ministry of Economy of Georgia, the study developed since 2022 by the Italian consulting firm CESI at the request of the Georgian State Electricity System (GSE), was supported by the World Bank and the Georgian Ministry of Economy and Sustainable Development.

"The study confirmed that the Black Sea submarine cable project is promising and technically and economically feasible," the Georgian ministry said in a statement. The feasibility study included the determination of optimal cable characteristics, construction cost calculations and an economic analysis of the project.

It also outlined preliminary routes for the land and sea sections of the cable and developed a project implementation plan and procurement strategy.

Environmental and social impact studies are planned for 2025-2026, along with a seabed impact assessment of the project.

It is worth noting that on December 17, 2022, Azerbaijan, Georgia, Romania and Hungary signed a strategic partnership agreement in Bucharest to build the Black Sea Energy submarine electric cable. The project will feature a 1 GE capacity cable spanning 1,195 kilometers designed to transport green electricity from future offshore wind farms in Azerbaijan through Georgia and the Black Sea to Romania, for further distribution in Hungary and other parts of Europe. The European Commission plans to distribute 2.3 billion euros for this project.

In May 2024, energy operators from Azerbaijan, Romania, Georgia and Hungary signed a memorandum to create a joint venture for the Black Sea Energy project, headquartered in Bucharest.

The United Nations Conference on Climate Change (COP29) is actively promoting discussions on strategies to address climate change and adapt to existing conditions.

Representatives from nearly every nation meet annually to foster global cooperation and develop binding commitments and frameworks to reduce greenhouse gas emissions.

Under the leadership of President Ilham Aliyev, Azerbaijan's transition to green energy and its ongoing projects highlight the country's success in executing global investment initiatives amid global military, political and economic turmoil. New hydro, wind and solar power plants are essential for addressing Azerbaijan's growing energy needs and increasing its capacity to export green energy.

Global interest in these projects underscores Azerbaijan's significant potential in alternative and renewable energy production. Azerbaijan aims to become a leading supplier of electricity in Europe by increasing investments in this sector.

Recent large-scale investments by the United Arab Emirates company Masdar and ACWA Power from Saudi Arabia reflect Azerbaijan's favorable investment climate. These investments, totaling over $500 million, include the 240 MV Khizi-Absheron and 230 MV Garadag wind power plants, which are the first foreign-invested power projects in Azerbaijan.

The operation of these plants is expected to produce 1.5 billion kWh of electricity per year, save more than 330 million m³ of natural gas and prevent over 600,000 tons of carbon dioxide emissions.

Experts estimate that Azerbaijan has more than 27 gigawatts of wind and solar energy potential on land and 157 gigawatts of wind energy potential in the Caspian Sea. In Karabakh and Zangezur, the combined potential of wind, solar and hydropower exceeds 10 gigawatts. Effective utilization of these resources will significantly meet Azerbaijan's growing demand for electricity while supporting its territorial integrity and sovereignty.

By focusing on alternative energy production, Azerbaijan aims to reduce dependence on oil and natural gas for power plants, thus increasing its ability to export more oil and gas to Europe and increasing its revenues./ CNA