Alternative energy of Azerbaijan attracts French investors

Alternative energy of Azerbaijan attracts French investors

Energy of Azerbaijan interested French investors

The Ministry of Energy of Azerbaijan and the company Total Eren, based in France, signed a partnership agreement for the development of “green” energy in the Caucasus. The parties signed an agreement, according to which they will work together for a rough assessment and development of a favorable investment environment for financing developments in the field of alternative energy of Azerbaijan. The document was signed by Deputy Minister of Energy Elnur Soltanov and head of the special Department of Total Eren for business expansion in the Caucasus Emmanuel Terror. Soltanov revealed some details about his collaboration with Total. In particular, he spoke about the already implemented ideas and expressed the hope that the partnership in the field of renewable energy will help both parties to achieve their goals.

French to deal with Azerbaijan’s energy

Soltanov spoke in more detail about the potential for the development of alternative energy in Azerbaijan and noted that the agreement will allow to move forward in the field of the share of green energy in energy generation, and will be the next stage of joint work with Total. The French are strongly interested in the development of energy
complex in the Caucasus in an ecological direction, the organization has its own interests in the industry.

To date, Azerbaijan is actively engaged in the introduction of environmentally friendly energy. To do this, the state constantly negotiates with partners from other countries, including the European Union, the United States, the UAE and China. For example, there are already agreements with the company DNV GL, based in Norway, which will support Azerbaijan in developing its own regulatory framework for green energy.

Most hopes in this industry are laid in Azerbaijan on solar energy – experts expect to receive about 5,000 MW. Wind power plants have a slightly smaller potential – 4500 MW, biomass processing – 1,500 MW, geothermal energy – 800 MW, and small hydro power plants – 350 MW. In total, all RES in the Caucasian country are estimated at 25,300 MW, which will give up to 63 billion kWh of electricity per year. Meanwhile, considering the issues of partnership with Total in the field of “green” technologies, experts are convinced that it will not have a significant impact on the implementation of the company’s projects for the production and sale of natural gas in Azerbaijan. The partnership agreement mentions special projects with great potential. One of the participants of the market of traditional fuels in the Caucasus state said that they were able to evaluate a number of projects, identify the most promising and start their implementation. The agreement on joint work is only the beginning of the implementation of these tasks.

The expert stressed that Azerbaijan really sees great opportunities for obtaining clean energy. However, initially it was about wind turbines. It is to be recalled that total specializes in the production, processing and sale of carbohydrates, as well as energy derived from low-carbon sources. The company has its own representative offices in 130+ countries, and has been present in Azerbaijan since 1996. The main branch of Total’s work in the Caucasus country is the production and sale of lubricants. The company has a 50% stake in the agreement on the division of the developed compositions in the “Absheron” region in the Caspian sea, as well as a 5% stake in the Baku-Tbilisi-Ceyhan oil pipeline. Total supplies gas to the state-owned company SOCAR, sells gasoline, diesel, automotive and industrial substances for lubricating mechanisms in the country, and buys crude oil, most often from SOCAR.