Relevant measures have been taken by the Ministry of Energy for strategic road maps in the first half of 2019


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In the I half of 2019 the working group for the “Strategic Road Map on Development of Utilities (electricity and thermal energy, water and gas) in the Republic of Azerbaijan” held 2 meetings and the sub-working groups for the priorities of the strategic road map held 4 meetings, where the Ministry of Energy was the coordinator and the main executor of 23 events. A meeting was held to discuss the issues of monitoring and evaluation of measures the implementation of which is implied by the “Strategic Road Map on Development of Utilities (electricity and thermal energy, water and gas)” during the 2018-2019 period, the work done has been reviewed, long-term view for the period up to 2025 and proposals for targeted views for the post-2025 period have been prepared.

For identifying energy priorities, a research related to the preparation of feasibility studies was conducted by international consultant companies and local experts. Gas and mazut as traditional sources, and wind, solar, bioenergy as alternative and renewable energy sources have been identified.   

Legislative acts on stimulating tariffs, auctions and so on. were drafted with the participation of international consulting companies for the purpose of the implementation of 420 MWt power supply by private investment, which was provided in Strategic Road Map for the identification of funding sources on investments.

Electricity demand on additional power production was forecasted up to 2025 and 2030, and the potential for this demand has been determined.

Work on the assessment of alternative and renewable energy potential was also carried out  and  a schedule and a plan for the work to be done were prepared by involving international consulting companies to ensure the use of this potential.

Relevant proposals have been made to select the form of exploitation and financing of power plants required investment. These proposals envisage setting a legal and regulatory framework for attracting private investment, applying incentive measures, defining state guarantees, and prioritizing and auctioned high potential areas in renewable energy sources.

Measures were taken to increase efficiency on the basis of the recommendations of international consulting companies in both the transmission and distribution networks within the identification of enforcement mechanisms.

Main implementation indicators that follow the quality of electricity transmission   have been identified by  Azerbaijan Scientific-Research and Design-Prospecting Power Engineering Institute, German VPC, as well as the Energy Regulatory Agency. It was proposed to allocate funds for the implementation of relevant measures in this direction.

The draft law on  "Power Engineering Industry" for the improvement of the main regulatory and other related legislation in the field of power engineering industry has been submitted to the Cabinet of Ministers for redraft and reconciliation involving international experts. In addition, legislative act on " Regulator on Energy and Utility Services" is being drafted within the framework of the "Support to the Energy Regulatory Agency" project jointly with the European Bank for Reconstruction and Development (EBRD). The opinions and suggestions on the project have been discussed by the relevant Working Group.

A decree draft on " Amendments to the Rules of Gas Use, approved by the Cabinet of Ministers of the Republic of Azerbaijan dated May 12, 2011 was made. Thıs draft envisages calculation of the losses caused by external interference to gas meters and lines on maximization of collection level and review of application of fine for illegal use of natural gas.  The document is in the process of agreement.

Funds were allocated for the implementation of research according to the relevant decree of the President of the Republic of Azerbaijan on the supply of alternative sources of remote settlements where technically economical gasification is inefficient, and the tender process for the selection of an international company is about to be completed. Decision of the Cabinet of Ministers on the approval of "Rules of Use of Heat Energy" for the improvement of the normative legal base in the field of heat supply has been prepared and agreed and submitted to whom it may concern. Related to the implementation of institutional measures in the field of heat supply, the VPC company of  Germany makes  audits in heat boiling rooms in Baku, Sumgayit and Ganja.

In the first half of 2019, the Ministry of Energy also submitted a report on the work done on the Action Plan of the "Strategic Roadmap for the Development of Heavy Industry and Machinery in the Republic of Azerbaijan" to the Ministry of Economy. Hardcopies that reflect international examples of energy efficiency in the production process on implementation of "Directing of energy consumers to use energy efficienciently" of the Action Plan have been prepared and submitted to the Training Center of "Azerishig" OSC.

During the first half of the year, the working group for the “Strategic Road Map on Development of Oil and gas industry (including chemical products) in the Republic of Azerbaijan” held 5 meetings on events where the Ministry of Energy was the executor.   During the meetings the implementation status of the activities was analyzed, and the discussions were held on the opinions and suggestions on new instructions, the results of the monitoring and evaluation, and the improvement of the working group's activities.

However, "The Strategic Road Map for the manufacture and processing of agricultural products in the Republic of Azerbaijan" suggests that the Ministry of Energy and Ministry of Agriculture should mutually develop and carry out a pilot project in connection with the implementation of the event on "Assessment of the capacity of transition to "Green economy" in the agrarian field and use of alternative energy sources in the heating supply for the greenhouses", the main executor of which is the Ministry of Energy.

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