Power plants to be privatized in Azerbaijan
By Aygul Salmanova
Power plants in Azerbaijan may be privatized, the State Property Issues Committee said in a message released on February 7.
This is reflected in the Strategic Road Map for development of public utilities in Azerbaijan. A working group has already been created to study the possibility of privatization of power plants. The working group includes representatives of Azerenerji OJSC, the ministries of energy and economy. International consultants are also involved in the process.
Azerenerji OJSC is studying the condition of power plants in Azerbaijan, identifying the strategically important power plants which should remain on the balance of the state.
At the next stage it is planned to attract investors or operators to privatization of power plants.
The final proposals for privatization will be prepared taking into account the comments of foreign experts and will be submitted to the Azerbaijani government after agreement with relevant structures.
Azerbaijan, working hard to develop the non-oil sector by diversifying the country’s economy, has a strong 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, which allows not only cover domestic needs, but also forms export potential of the country.
Azerbaijan is investing on the improvement and production of renewable energy resources. According to the Renewable Energy Strategy for 2012-2020, the country aims to raise the renewable energy volumes to 20 percent in electricity and 9.7 percent in total energy consumption.
In January 2013, Azerbaijan announced to raise over $7 billion in alternative energy investments by 2020, and increase total renewable capacity to 2,000 MW or 20 percent of the nation’s overall power needs.
The wind, which blows more than 250 days per year and may generate 2.4 billion kWh of electricity annually, is the country’s preferred option because of its lower cost, environmental soundness and unlimited availability.
Offering 2,400-3,200 hours of sunshine per year, Azerbaijan has also good potential for solar electricity and heat generation.
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 MW of electricity a year.
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