Azerbaijan, which once struggled to meet its domestic needs and had to import electricity and could not provide the whole country with ongoing energy, has fully solved this problem, and at the same time, has become an energy exporter as a result of the purposeful and consistent measures taken.
Today, energy security attracts attention as an important circle of national security and the solution to this priority issue concerns world countries. Azerbaijan, that has proven itself as an energy country at the expense of its hydrocarbon reserves and become an important participant in Europe’s energy security, already obtains additional political and economic dividends by the export of electricity,
The renovation of the energy production infrastructure, construction of tens of big and small powers plants, renovation of electric lines are the reality of the last years. As a result of the complex measures taken in the field of energy, in the past 10 years, 19 new power plants with 1973,5 MW have been commissioned and thus, the number of power plants currently operating in the country has reached 60.
NEW PRODUCTION FORCES COMMISSIONED
Last week, while receiving president of “Azarenerji” Open Joint Stock Company (OJSC) Baba Rzayev, President Ilham Aliyev reviewed the achievements and challenges in this field.
The head of state emphasized that currently, Azerbaijan fully provides itself with electricity, and at the same time, export opportunities have been created: “This year, as a result of the significant steps, we have commissioned new production forces. First of all. The commissioning of “North-2” Power Plant is an important event. In September, the power plant was launched with my participation. The power plant with 400 MW significantly increases our energy potential. The conventional fuel consumption is at a very low level. Therefore, this power plant is line with all the standards”.
Yes, on September 5th, a remarkable event took place in the field of Azerbaijan’s electricity. It was the commissioning of the “North-2” Power Plant.
In 1998, during President Heydar Aliyev’s visit to Japan, he achieved the investments in the construction of the “North-1” Power Plant. Thus, the “North-1” Power Plant with 400 MW, which foundation was laid in 2000, was commissioned in 2002. In 2011, the foundation of the “North-2” Power Plant with 400 MW and the area of 104,9 ha was laid with the participation of President Ilham Aliyev.
From the autumn of last year, the construction and installation of the “North-2” Power Plant were speeded up, and in 2019, the works were completed.
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President Ilham Aliyev also familiarized himself with the repair-restoration works of the “Azerbaijan” Thermal Power Plant: “Earlier this year, I gave you the instruction to ensure the repair-restoration works of the “Azerbaijan” Thermal Power Plant; renovation works must have been carried out and completed in 5 out of 8 blocs. How is the situation in this sphere?”
Head of “Azarenerji” OJSC Baba Rzayev noted that the renovation works in 5 blocs had already been completed. He emphasized that the 500 kW outdoor distribution device has been fully restored, 80% of works have been completed in the 330 kW distribution device. According to Baba Rzayev, it will help completely prevent accidents.
The head of state highlighted that the accident, which occurred in the summer of last year, cost us a lot: “Both our citizens suffered from that, some people were stranded at the metro, and industrial facilities were damaged. Therefore, the commission was set up to investigate the causes of the accident, and all high-ranking officials, who had committed violations and negligence, were sacked. For this reason, the restoration of Mingachevir Power Plant, which is our strategic facility, and guaranteeing ourselves from accidents were put as the main tasks before the new administration of “Azarenerji”. At the same time, the construction of the “North-2” Power Plant with 400 MW in Baku serves a more fair distribution of energy generating forces across the country.
After the accident, I gave the instruction to install generators at all of our metro stations. The main task of generators is that if an accident occurs, trains would be able to move to the platform and elevators would work. How is the work on the installation of generators going on? Has this work been completed or not?”
Baba Rzayev said that this work has been 100% completed: “The central control panel is at the head office of Baku Metropolitan and the works have been completed there. 17 generators with 2, 500, 2, 000 and 1, 000 kW have been installed at our 10 substations, a new power source with 39 MW has been created. The works have been fully completed at a very high level”.
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Thus, at the expense of the creation of new production forces, the 18% increase in electricity production has been achieved in the last 10 years. In 9 months of the current year, the electricity production has risen by 4.9% and reached 19.6 bln kW/h compared to the relevant period of last year. The electricity produced from renewable energy sources during this period has grown by 40% compared to January-September of last year. Compared to 2018, this year, the production of electricity is forecast to increase by 3.6% in 2020 and by 8-10% in 2021.
AZERBAIJAN AS EXPORTER OF ELECTRICITY AND TRANSIT COUNTRY
As we have already noted, Azerbaijan is also strengthening its positions as an exporter. Azerbaijan’s role is especially significant as an exporter and transit country in the format of electricity cooperation with Russia, Georgia, Turkey and Iran. If in 2006, the 1.8 bln kW/h electricity was imported to meet the domestic needs, in 2018, this indicator decreased to 131 mln kW/h. In turn, the export has grown by 78% and reached 1.4 bln kW/h throughout 10 years. In 9 months of the current year, the 1.1 bln kW/h electricity has been exported, and 111.5 mln kW/h has been imported. Compared to the relevant period of 2018, the export indicator has made more than 42%. 859 mln kW/h electricity has been exported to Georgia, 120.7 mln kW to Russia, 56.5 mln kW to Turkey and 28.7 mln kW to Iran. In turn, 74.8 mln kW electricity has been imported from Russia, 27.4 mln kW to Iran and 9.3 mln kW to Georgia.
Since May of this year, Azerbaijan has started exporting electricity to Greece, Romania and Hungary. We should add that Azerbaijan has been exporting electricity to Russia, Iran, Georgia and at the same time, to Turkey. After the Eastern European countries, Austria and Italy are expected to join the exporters of the Azerbaijani electricity. Thus, along with the expansion of the sale geography by entering new markets, Azerbaijan gives a new design to Europe’s energy map after exporting hydrocarbon reserves.
Now, Europe also enters this system. It means that Azerbaijan has already become a very significant venue of the energy infrastructure connecting Asia and Europe.
THE 11-MONTH REPORT – HOW MUCH ENERGY HAVE WE EXPORTED?
The outcomes of 11 months of the current year are positive. Thus, in January-November, our country has exported 1 742 720 kW/h electricity. The cost of this volume of electricity has made 76, 035 USD.
The volume of the electricity exported in 11 months of this year is 362 566 kW/h or 26.3% in the amount of 11, 066 USD or 17% more.
The fact that buyers are interested in the cooperation with Azerbaijan is not accidental: our country is known as a reliable partner on an international scale.
Our country does not use its own resources as a political leverage, builds relations on healthy, equal cooperation principles and uses all resources and infrastructure for the welfare of the people. Azerbaijan provides enough support for the beneficial usage of all the transit lines by the region’s peoples. The support Azerbaijan provided for the neighboring countries during the gas and energy crises is well remembered.
3 PRIORITIES
Thus, we can say that the tasks set by President Ilham Aliyev for the full realization of the energy field’s potential and the measures taken in this direction are designed especially for 3 priorities.
Firstly, the identification of resources, full usage of the existing traditional and alternative energy production opportunities.
Secondly, fully meeting the domestic energy needs, modernization of the electricity system.
Thirdly, the strengthening of Azerbaijan’s positions as an electricity exporter, expansing of buyers and thus, enlargement of the geography of economic and political partners.
Vusal Mammadov
