State Program on the Use of Alternative and Renewable Energy (Decree of the President No. 462 of 2004)

Meta Data

Title in national language:

Azerbaycan Respublikasında alternativ və bərpa olunan enerji mənbələrindən istifadə olunması üzrə Dövlət Proqramı / Государственная программа «Об использованию альтернативных и возобновляемых источников энергии в Азербайджанской Республике»

Draft:

Revision of previous policy?:

Draft Year:

2004

Effective Start Year:

2004

Scope:

National

Document Type:

Programme

Economic Sector:

Energy

Energy Types:

Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wind

Issued by:

Office of the President of the Republic of Azerbaijan

Notes:

Unofficial translation into English

Source:

INOGATE (EN)

E-qanun (AZ)

Policy Database of CIS Countries (RU)

File:

State Program on Use of Alternative and Renewable Energy Sources in the Republic of Azerbaijan (EN)

Overall Summary:

The policy establishes a comprehensive regulatory framework for the development of renewable energy in the Republic of Azerbaijan. Given its advantageous geographical and climate conditions, Azerbaijan has significant untapped potential for the deployment of renewable energy. Advances in unconventional energy industry will generate substantial sector-wide gains, including the decrease of fuel consumption in thermal power generation, moreover, significant achievements are expected to be made in pollution reduction. Increased uptake of renewable heating and power generation lays the foundation for future developments in the fuel and energy sector. --- In overall, the policy identifies drivers and challenges to the deployment of renewable energy in Azerbaijan, makes projections of renewable energy trends.

Renewable Energy

RE priorities:

The main objective of the Program is to increase strongly renewable power generation. Multiple benefits of increased uptake of renewable energy include improved efficiency of the energy sector and strengthened environmental sustainability---Due to its economic attractiveness and unlimited availability, considerable wind energy potential is expected to be exploited. The renewable industry will enter a deeper period of restructuring with broader application of advanced wind power facilities. Estimates show that wind energy potential is equal to 800 MW (yearly). --- Scaling up solar energy projects will solve to a certain extent existing energy issues in a number of regions. The Program establishes supportive policy frameworks for implementation of the Photovoltaic Program. --- An emphasis is also placed on the development of hydropower energy and increasing the use of biomass for energy purposes. --- Deployment drivers for geothermal power are expected to remain robust, in addition, the sector doesn't require significant investment inflows.

RE action plans:

A comprehensive program of measures is proposed to support the implementation of the Program. Measures envisaged by the Plan include: improving regulatory frameworks on renewable energy, developing skilled labor force qualified in the field of renewable energy, carrying out scientific research, etc.

RE public awareness/promotional programmes:

Undertake actions on training specialists for utilization of alternative (renewable) energy sources and education of consumers.

Governance

Energy management principles:

The policy pursues a number of objectives to strengthen national energy security: 1) untap the potential of renewable power generation, 2) improve efficiency of the energy sector through penetration of RES into the energy mix, 3) facilitate job creation in renewable energy industry.

National policy structure:

The Program strengthens regulatory frameworks established by the Law on the Use of Energy in the Republic of Azerbaijan; the Law on Power Engineering; the Law on Energy; the Law on Electric and Thermal Power Plants; the State Program on Poverty Reduction and Economic Development for 2003-2005 adopted pursuant to the Presidential Decree N854 of February 20, 2003; Measures on Strengthening Financial Regulation in the Energy and Water Sectors adopted pursuant to the Ordinance N893 of March 25, 2002; Presidential Decree N4 on Accelerated Social and Economic Development of the Republic of Azerbaijan of November 24, 2003; the State Program on the Regional Social and Economic Development in the Republic of Azerbaijan for 2004-2008 adopted pursuant to the Presidential Decree N24 of February 11, 2004; the Presidential Decree N458 on Establishment of the Ministry of Fuel and Energy dated April 18, 2001; and other legal acts.

Energy institutional structures:

Azerbaijan’s institutional and academic structures mandated with research and development on renewable energy include the Institute of Physics of the National Academy of Sciences, the Institute of Radiation Problems, the Institute for Scientific Research and Design-Prospecting Power Engineering, and Baku Hydro Design Institute.

Technology

Clean energy technology priorities:

The objective of State Program is to promote the power generation from renewable and environmentally sound sources and to more efficiently utilize hydrocarbon energy sources.---Conduct scientific researches to determine the potential of alternative (renewable).

Clean energy technology transfer:

Study and application of international experience on utilization of alternative (renewable) energy sources.

Clean energy technology deployment:

Using local scientific-technical potential and raw materials, Increase the efficiency rate of photo elements used in production of solar power and start their production (2005-2007).---Conduct scientific-research works towards the conversion of power of sea high and low tide into electric power (2005-2010 ).---Develop modern technologies for production of bio-substances from industrial, agricultural and domestic wastes; undertake works towards construction of small biomass-firing power plants (2005-2013).---Develop technologies for getting coke brick from oil refinery wastes at refinery plants in order to produce heat energy (2005-2008).

R&D renewable energy:

Conduct scientific-research works towards the conversion of power of sea high and low tide into electric power (2005-2010 ).

Full Document Text

NOTE: Some content is not displayed completely, including tables and figures. Please see PDF for full details

State Program

On the Use of Alternative and Renewable Energy Sources in the Republic of Azerbaijan

Introduction

Because of gradual shortfall of traditional energy sources and vast hazards to environment yielded by their utilization, developed countries widely use environmentally sound alternative (renewable) energy sources (solar and wind power, small HPPs, thermal waters, biomass power). USA, Canada, Germany, Finland, Norway, Denmark, Spain, Japan and China have leading positions in this area. According to statistics, renewable energy sources (including hydro power plants) constitute 13.5 percent of overall power generation in developed countries.

Wind power has much importance among renewable energy sources. Germany holds the leadership in the world for use of wind power. Adoption of Law on Renewable Energy Sources in this country strongly encouraged the application of wind power installations. More than 35 thousand employees are currently involved in production, installation and operation of wind power facilities in Germany.

Potential energy of water is environmentally pure source in electric power generation. Power generation from this source has had growing trend since 1990. Some countries of Latin America, Asia and Africa as well Northern European countries (which have large hydro resources) have set as a priority to utilize this energy source in the line with other alternative sources.

Direct conversion of thermal power into electric power is widely practiced throughout the world and it is regarded as one of the main areas of energy sector in developed countries. European Union countries and USA have commenced the construction of large-scale power plants to utilize alternative energy sources based on Kyoto Protocol of 1997. The volume of heat energy generated from solar power is significantly higher than in terms of electric power equivalent. That is, this factor is 600 MW in USA, 100 MW in France, 100 MW in Israel, 50 MW in Turkey and so forth.

The USA, Germany, Japan and China employ high-efficiency technologies for development of main working element (photo element) of solar stations which directly converts solar power into electric power. The efficiency factor of these photo elements equals 12-14 percent. The stations developed with such photo elements covers 2 hectares per 1 MW. A number of scientific researches are presently conducted in develop countries to reduce area coverage of photo elements.

Convenient geographical location and climate condition allows for wide utilization of environmentally sound alternative (renewable) energy sources in Azerbaijan. This would save large amount of fuel combusted in thermal power plants, as well significantly reduce hazardous substances. Production of electric and heat energy using alternative energy sources would be incentive for progressive changes in future development of energy sector.

Institute of Physics of National Academy of Sciences, Institute of Radiation Problems, Scientific-Research and Power Design Institute and Baku Hydro Design Institute have undertaken expedient scientific activities towards utilization of renewable energy sources.

This State Program have been prepared based on Law on Energy Utilization; Law on Power Engineering; Law on Energy; Law on Electric and Thermal Power Plants; State Program on Poverty reduction and Economic Development for 2003-2005 approved with Presidential Decree N854 dated February 20, 2003; Measures on Strengthening Financial Discipline in Energy and Water Sectors approved with Ordinance N893 dated March 25, 2002; Presidential Decree N4 on Furtherance of Socio-Economic Development in Azerbaijan Republic dated November 24, 2003; State Program on Socio-Economic Development of Regions of Azerbaijan Republic for 2004- 2008 approved with Presidential Decree N24 dated February 11, 2004; Presidential Decree N458 on Establishment of Ministry of Fuel and Energy dated April 18, 2001; and other normative-legal acts.

1. Objective and Major Purposes of State Program

The objective of State Program is to promote the power generation from renewable and environmentally sound sources and to more efficiently utilize hydrocarbon energy sources.

The major tasks of State Program include:

1) define the potential of alternative (renewable) energy sources for electric power generation;

2) raise the efficiency of utilization of country’s energy sources by developing renewable energy sources;

3) ensure the opening of additional jobs with creation of new energy production sites;

Given the existing total capacity of traditional energy sources in Azerbaijan, increase the energy capacities at the expense of alternative energy sources and therefore, achieve the country’s energy security.

2. Alternative (renewable) energy potential of Azerbaijan

Wind power is the more preferable energy source than solar, hydro, geothermal and biomass for its cost, environmental soundness and unlimited availability. Practice shows that many of regions in Azerbaijan have great perspective for application of wind power facilities. Calculations suggest that AzerbaijanRepublic has about 800 MW annual wind power capacities due to its geographical location, nature and economic infrastructure. This reserve means 2.4 billion kWh of electricity, according to rough calculations. This would imply the saving up 1 million tons of conditional fuel, more importantly, prevention of emitting large quantity of wastes including ozone-cracking carbon dioxide.

Long-term surveys have determined that convenient windy condition prevails in AbsheronPeninsula, Caspian seashore and islands in the north-west of Caspian basin. It is feasible to use medium capacity wind power facilities in Ganja-Dahskesen zone and Sharur-Julfa area of NakhchevanAutonomousRepublic because the annual average speed of wind in those regions is 3-5 m/sec.

Japanese company Tomen, together with Azerbaijan Scientific-Research Energy and Power Design Institute, had installed two wind towers of 30 m and 40 m heights and determined that annual average wind speed is 7.9-8.1 m/sec in Absheron. The company had also prepared a Feasibility Study for installment of 30 MW wind power plant in Gobustan region.

Assessment of Azerbaijan’s renewable energy sources have been conducted in 2002 and it was determined that AbsheronPeninsula has large-scale wind power capacity. The average speed of long-lasting wind is more than 6 m/sec which shows the convenient technical-economic potential for using wind power. The statistical data on wind power gathered in Shimal DRES area have once again justified the above indicators. Based on conducted researches, the presented indicators on Gobustan area have been included into 4th class of wind energy potential, which is considered as a high potential.

Solar Energy

The climate condition of Azerbaijan opens great opportunities for production of electric and heat energy using solar power. The annual number of sunshine hours in USA and Central Asia is 2500-3000 hours, 500-2000 hours in Russia and 2400-3200 hours in Azerbaijan.

Development of solar power can partially solve energy problem in many regions of Azerbaijan. Several developed countries have recently started to widely apply Photovoltaic Program (PVP). Involvement of Azerbaijan in this Program can have important role in application of such type of energy systems.

It should be noted that the efficiency of solar stations depends on country’s natural climate condition and geographical location. The solar power that comes down to earth totals 1500-2000 kWh/m2 annually in USA, 800-1600 kWh/m2 in Russia, 1200-1400 kWh/m2 in France, 1800-2000 kWh/m2 in China and 1500-2000 kWh/m2 in Azerbaijan.

It is obviously clear that the quantity of solar rays in Azerbaijan prevails in comparison with other countries, which might be regarded as one of the efficiency factors for attracting investments to utilization of solar power.

Small Hydro Power Plants

The weight of generation capacity of hydro power plants within Azerbaijan’s overall power system is presently 17.8 percent. 2.4 billion kWh of total electricity generated in 2003 was produced by hydro power plants, which constituted 11.4 percent of overall electricity generation.

There are some hydropower potentials in the country that are still undeveloped up to date. The researches related to this area showed that overall hydropower potential of rivers in AzerbaijanRepublic equals 40 billion kWh. The technically feasible potential totals 16 billion kWh, 5 billion kWh of which is related to small hydro power plants.

Construction of hydro power plants has important role in resolution of country-level issues such as regulation of flood waters, environmentally sound electricity generation and creation of new irrigation systems. It is possible to locate dozens of small hydro power plants on rivers and water facilities and these plants can generate up to 3.2 billions kWh annually. For near-term perspective, it would be expedient to install 61 small HPPs. These HPPs can be located on irrigation canals, rives with unregulated flow and water reservoirs that are under-construction. Use of micro HPPs in electricity supply of objects and settlements that are remote from transmission lines and substations of countrywide grid system can resolve electricity problems, as well social problems.

Given that power system of Nakhchevan Autonomous Republic has no connection with mainland (countrywide) power system, construction of medium, small and micro hydro power plants would be more expedient primarily for Nakhchevan Autonomous Republic.

Biomass Energy

Rapid development of industry, agriculture and social service in Azerbaijan Republic opens new opportunities for electricity generation from biomass. The sources of biosubstances in the country include followings:

1) combustive industrial wastes;

2) wastes of forestry and wood-working;

3) agricultural and organic wastes;

4) domestic and communal wastes;

5) wastes processed from areas polluted with oil and petroleum products.

Studies suggest that much of composition of production wastes in all industrial sites is biomass substances. It is feasible to produce biogas, bio-liquid and solid biosubstance that can be used for electricity generation. More than 2.0 million tons of solid domestic and production wastes are annually thrown to waste treatment sites in AzerbaijanRepublic. Utilization (processing) of solid domestic and production wastes would partially resolve the problems in heating public buildings in Baku and other large industrial cities.

Many of European countries have already found the ways to solve these problems. That is, waste combustion plants are built in densely populated areas and domestic wastes are fired in those plants. The nearby residential settlements are then provided with electricity and heat at the expense of energy produced from waste combustion. The remains of fired wastes are widely used as a manure to increase fertility of soil. Therefore, construction of such plants having complex importance would be significant for Azerbaijan, too.

2.2 Geothermal power

The heat of earth depth is widely used in industry, agriculture, domestic, communal and health sector in many countries. The advantage of using geothermal power in energy production and consumption is that their application doesn’t require large amount of funding.

AzerbaijanRepublic is rich with thermal waters. They are usually found in Great and Small Caucasus, AbsheronPeninsula, Talish mountain-row zone, Kur lowland and Caspian-Guba area. Exploitation of thermal waters in noted areas would partially cover the domestic and other heat energy needs.

Attracting private investments in connection with implementation of actions envisaged under State Program and maximum use of alternative (renewable) energy sources can be conductive for connection additional capacities to power system.

Measures on the Use of Alternative (Renewable) Energy

Please see PDF for details.