renewable energy in Azerbaijan
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Gas and oil make up two-thirds of Azerbaijan's GDP, making it one of the top ten most fossil fuel-dependent economies in the world.{{Cite web |last=Lo |first=Joe |date=9 December 2023 |title=Oil-reliant Azerbaijan chosen to host Cop29 climate talks |url=https://www.climatechangenews.com/2023/12/09/oil-reliant-azerbaijan-chosen-to-host-cop29-climate-talks/ |access-date=9 December 2023 |website=Climate Home News |language=en}} Azerbaijan has some renewable energy projects.{{Cite web|url=http://www.carecprogram.org/uploads/events/2013/ESCC-Meeting-KAZ/005_104_209_Alternative-and-Renewable-Energy-Sources-in-Azerbaijan.pdf|title=Alternative and renewable energy sources in Azerbaijan|access-date=4 December 2017|archive-date=30 April 2017|archive-url=https://web.archive.org/web/20170430185922/http://www.carecprogram.org/uploads/events/2013/ESCC-Meeting-KAZ/005_104_209_Alternative-and-Renewable-Energy-Sources-in-Azerbaijan.pdf|url-status=dead}}{{Cite web|url=http://anl.az/down/meqale/ses/2010/may/120338.htm|title=Alternativ və bərpa olunan enerji mənbələrindən istifadə}} These include hydropower, wind, and solar and biomass power plants.{{Cite web|title=Renewable Energy Could Be The Next Big Thing For Azerbaijan|url=https://caspiannews.com/news-detail/renewable-energy-could-be-the-next-big-thing-for-azerbaijan-2019-4-11-36/|last=Mehdiyev|first=Mushvig|date=11 April 2019|website=Caspian News|language=en|archive-url=|archive-date=|access-date=13 May 2020}}
The country's currently installed renewable energy capacity is 4.5 MW.{{Cite web|title=Renewable energy snapshot: Azerbaijan|url=http://www.undp.org/content/dam/rbec/docs/Azerbaijan.pdf|last=|first=|date=|website=|archive-url=|archive-date=|access-date=}} Azerbaijan began installment of its first major solar plant in 2023.{{Cite news |date=2023 |title=Azerbaijan starts installing first major solar power plant |work=Eurasianet |url=https://eurasianet.org/azerbaijan-starts-installing-first-major-solar-power-plant}} The government of Azerbaijan aims to increase share of renewables in total electricity production to 30% by 2030.{{Cite web|title=Azerbaijan In The Light Of Climate Change – Analysis|url=https://www.eurasiareview.com/01052020-azerbaijan-in-the-light-of-climate-change-analysis/|last=Shahana|first=Bilalova|date=1 May 2020|website=Eurasia Review|language=en-US|archive-url=|archive-date=|access-date=13 May 2020}}
To accelerate investments and production in renewable energy, Azerbaijan is offering the following tax incentives:{{Cite web |title=Renewable Energy Law in Azerbaijan |url=https://www.caspianlegalcenter.az/what-we-do/renewable-energy |website=Caspian Legal Center.}}
- exemption for income of private electricity production by residential consumers (from renewable energy sources with a capacity limit of up to 150 kW);
- profit of renewable energy producers based on Public Private Partnership or Power Purchase Agreements up to 30 years is exempted from income tax (personal income tax and corporate income taxes);
- VAT and customs duties for the import of machinery, technological equipment, and devices by renewable energy producers based on Public Private Partnership or Power Purchase Agreements up to 30 years, for the production of renewable energy not less than the capacity requirement set by the Cabinet of Ministers;
- Property tax for the property used for the purposes of renewable energy production based on Public Private Partnership or Power Purchase Agreements up to 30 years is exempted from income tax (personal income tax and corporate income taxes);
- Land tax for the lands used by the renewable energy production projects based on Public Private Partnership or Power Purchase Agreements up to 30 years is exempted from income tax (personal income tax and corporate income taxes);
Renewable energy sources in Azerbaijan
Azerbaijan’s renewable energy sources are hydropower, wind, solar, and biomass power plants. Together, these generated 1.48 billion kilowatt-hours (kWh) of energy in 2018, comprising almost 9% of the total production of 17.2 billion kWh.{{Cite web|url=https://www.azernews.az/business/101789.html|title=Azerbaijan reveals potential of renewable energy sources|date=5 September 2016 }}
= Solar =
Solar Power Plants of 20 MW and over include:
- Garadagh Solar Power Plant – 230 MW{{Cite web |title=Ilham Aliyev attended official opening ceremony of 230 MW Garadagh Solar Power Plant » Official web-site of President of Azerbaijan Republic |url=https://president.az/en/articles/view/61984 |access-date=16 January 2024 |website=president.az |language=en}}
- Nakhchivan Solar Power Plant – 20 MW
= Windmills =
Azerbaijan is one of those countries where windmills could be perfect fit due to geographical location. In particular, the Absheron peninsula, coastline of Caspian Sea and islands in the northwestern part of Caspian Sea, the Ganja-Dashkesan zone in the west of Azerbaijan and the Sharur-Julfa area of the Nakhchivan Autonomous Republic are favorable areas. In 1999, Japan's Tomen Company, together with the Azerbaijan Scientific Research Institute of Power Engineering and Energy, installed two towers with 30 and 40 meters in Absheron, average annual wind speed was determined to be 7.9-8.1 m/sec and feasibility study about the installation of windmills with a total capacity of 30 MWt had been prepared in Qobustan region.
= Hydroelectric energy =
{{See also|Hydroelectric power stations in Azerbaijan}}
The production of electricity from this hydropower is being increased since 1990. The percentage of production power of hydroelectric power plants is currently 17.8 percent in the total energy system of the Republic. There was no connection between Nakhchivan Autonomous Republic's energy system and the main energy system of the Republic, that is why medium, small and micro hydroelectric power stations need to be set up in the Nakhchivan Autonomous Republic.
State Agency on Alternative and Renewable Energy Sources
{{main|State Agency on Alternative and Renewable Energy Sources (Azerbaijan)}}
The State Agency on Alternative and Renewable Energy Sources of the Republic of Azerbaijan was established by the Decree of the President of Azerbaijan dated 1 February 2013, for improving the management system in the field of alternative and renewable energy.{{Cite web|url=https://www.azernews.az/business/51415.html|title=Azerbaijan aims to boost alternative energy sector|date=29 March 2013 }}
The Charter of the State Agency on Alternative and Renewable Energy Sources was approved by the Decree of the Head of State on 1 February 2013.{{cite web|url=http://archive.president.az/articles.php?item_id=20090716064638302&sec_id=29|title=Official website of the President of the Republic of Azerbaijan|accessdate=23 May 2011}}
Annual report
In 2014, 1480.0 million kWh of electricity was generated in the country by all renewable energy sources. This, according to estimated calculations, along with saving of 298,5 thousand tons of mazut or 429.2 million m3 of natural gas, prevents spreading to the atmosphere 919,400 tonnes or 763,900 tonnes of carbon dioxide ({{CO2}}).{{Cite web|url=http://www.area.gov.az/public/uploads/Hesabat/Hesabat-2014.pdf|title=2014-cü ildə Azərbaycan Respublikasında alternativ və bərpa olunan enerji və ondan səmərəli istifadə olunması sahəsində görülmüş işlər barədə Dövlət Agentliyinin hesabatı|access-date=4 December 2017|archive-date=14 June 2018|archive-url=https://web.archive.org/web/20180614102939/http://www.area.gov.az/public/uploads/Hesabat/Hesabat-2014.pdf|url-status=dead}}
In 2015, 1816.0 million kilowatt/hours of electricity was generated by all alternative and renewable energy sources (21.5 percent more than in the previous year), and 6315.3 percent of thermal energy (15.9 percent more than in the previous year). This has resulted on savings of 464.7 million m3 of natural gas on average and, prevents spreading to the atmosphere 827.2 thousand tons of carbon dioxide ({{CO2}}) (Calculated based on “ The method of calculating the amount of gases the thermal effect spreading to atmosphere” approved by the Ministry of Ecology and Natural Resources dated 18 January 2006){{Cite web|url=http://www.area.gov.az/public/uploads/Hesabat/Hesabat-2015.pdf|title=2015-ci ildə Azərbaycan Respublikasında alternativ və bərpa olunan enerji və ondan səmərəli istifadə olunması sahəsində görülmüş işlər barədə Dövlət Agentliyinin hesabatı|access-date=4 December 2017|archive-date=19 June 2018|archive-url=https://web.archive.org/web/20180619085952/http://www.area.gov.az/public/uploads/Hesabat/Hesabat-2015.pdf|url-status=dead}}
According to collecting data from the preliminary official statistical and economic subjects, in 2016, 2,141.9 million kilowatt/hours electricity, or 9.3 percent of 23,073.9 million kilowatt/hours of electricity produced by the all sources in country were the total amount of alternative and renewable energy sources. Compared with the previous year, the total production of electricity amounted to 100.8%, and its production on The State Agency for Alternative and Renewable Energy Sources was 117.1%. 4212.4 Gcal of thermal energy was generated on the State Agency for Alternative and Renewable Energy Sources, which means an increase of 2.0% compared to the previous year. Efficient utilization of State Agency for Alternative and Renewable Energy Sources has resulted 548.7 million m3 of natural gas savings and, to prevent spreading to the atmosphere 976.7 thousand tons of carbon dioxide ({{CO2}}) (Calculated based on “The method of calculating the amount of gases the thermal effect spreading to atmosphere” approved by the Ministry of Ecology and Natural Resources dated 18 January 2006) {{Cite web|url=http://www.area.gov.az/public/uploads/NK%20hesabat-%202016%20illik.pdf|title=2016-cı ildə Azərbaycan Respublikasında alternativ və bərpa olunan enerji və ondan səmərəli istifadə olunması sahəsində görülmüş işlər barədə Alternativ və Bərpa Olunan Enerji Mənbələri üzrə Dövlət Agentliyinin hesabatı|access-date=4 December 2017|archive-date=13 July 2018|archive-url=https://web.archive.org/web/20180713171152/http://www.area.gov.az/public/uploads/NK%20hesabat-%202016%20illik.pdf|url-status=dead}}{{Cite web|url=https://www.unece.org/fileadmin/DAM/env/eia/meetings/2015/December_9_Baku_SEA_for_the_National_Strategy/SEA_AZ_Draft_Report_2015.pdf|title="Alternativ və Bərpa olunan Enerji mənbələrindən istifadə üzrə, 2015-2020"Strategiyası}}