The Bank and Azerbaijan have a strong track record of effective technical cooperation. The Memorandum builds on years of collaboration between the Bank and the Ministry, including support for the Energy Regulator Agency, implementation of renewable energy auctions and development of a regulatory framework for small-scale renewable energy projects, among others.
The two co-located events at which the agreements were signed also played host to the signing of agreements between the Azerbaijan government and European Union (EU) to cooperate on energy security and transition to renewables.
Energy Ministry Azerbaijan
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Valiyev, quoted in a ministry statement published Nov. 10, also said a large volume of additional gas would be available in Azerbaijan later this decade with the development of new fields in the Caspian Sea.
The high growth scenario will result in more energy, more jobs, faster pay-back and more carbon dioxide avoided compared to the low growth scenario due to the increased cost reduction delivered by a larger market. However, significant and early action needs to be taken for this to happen. Both scenarios would only be tapping into a fraction of the vast technical potential for offshore wind resource in the country.
Azerbaijan is currently pursuing wind and solar projects with the goal of becoming an exporter of green energy to European markets. The government aims to increase the share of renewables in power production to 30% by 2030 through the phased installation of 1500 MW in renewable generation capacity. Concessions to promote development of renewables include a 7-year VAT exemption for technical equipment and facilities, customs duties exemption, and in some cases an exemption from land and property tax as well as 50 percent of income tax.
Azerbaijan hosted the 28th annual Baku Energy Week, May 31-June 3. Bringing together high-level representatives of relevant ministries and international organizations, and executives of companies in the energy sector, Baku Energy Week consists of the International Caspian Oil & Gas Exhibition, the Caspian International Power and Green Energy Exhibition, and the Baku Energy Forum. 326 corporations from 37 countries participated in the exhibitions, which became a platform for bilateral and multilateral cooperation among the attending entities. Significant agreements were reached during the Baku Energy Week, addressing global energy security, promoting diversification, and advancing transition goals.
BUCHAREST -- The leaders of Azerbaijan, Georgia, Romania, and Hungary signed an agreement on laying an underwater electric cable under the Black Sea to provide Azerbaijani energy to Europe at a meeting in Bucharest on December 17.
The General Staff of the Serbian Armed Forces said on January 4 that it was making the proposal of compulsory service for up to four months to President Aleksandar Vucic "after an in-depth analysis of the general security situation and contemporary challenges facing the Republic of Serbia."
The ministry has long eyed bringing back compulsory military service -- abolished on January 1, 2011 -- but previous proposals have been shelved for reasons such as its high cost.
The IsDB Group's largest sector of operations, accounting for more than 42% of its total portfolio, is energy. IsDB has provided financing to several energy projects in Azerbaijan, including the Baku Waste to Energy Plant. IsDB has also provided financing to rehabilitate the Mingechaur Hydro Power Project and extended financing to the Khachmaz Electric Substation and Transmission Project, both of which have increased the reliability of the electricity supply in Azerbaijan.
The Government of Azerbaijan has marked the transformation of the Karabakh region into a green zone as a priority within ongoing reconstruction and development projects in the liberated territories. IsDB is happy to support such initiatives and programs, including attracting new investments for developing renewable energy projects, especially in the Karabakh region.
The Armenian foreign ministry said that a number of cities including Vardenis, Sotk and Goris were targeted, while footage posted online showed smoke rising from residential areas. Around 49 Armenian soldiers and 50 Azeri troops were killed in the border clashes, both sides said.
The Ministry of Energy of the Republic of Azerbaijan is the central executive authority implementing state policy and regulation in the fuel and energy sector. In its activity, the Ministry is guided by the Constitution of the Republic of Azerbaijan, laws of the Republic of Azerbaijan, decrees and executive orders of the President of the Republic of Azerbaijan, resolutions and orders of the Cabinet of Ministers of the Republic of Azerbaijan, international treaties to which the Republic of Azerbaijan is a party and the Regulation of the Ministry of Energy of the Republic of Azerbaijan.
Fuel and Energy Sector consists of activities defined in the field of energy by the Law of the Republic of Azerbaijan "On Energy". The Ministry of Energy of the Republic of Azerbaijan was established by the Executive Order No. 3 of the President of the Republic of Azerbaijan dated October 22, 2013. Previously, the Ministry of Industry and Energy of the Republic of Azerbaijan was established by Decree No. 150 of the President of the Republic of Azerbaijan dated December 6, 2004 and the Ministry of the Fuel and Energy by the Decree No 458 of the President of the Republic of Azerbaijan dated April 18, 2001.
According to the Ukrainian Energy Ministry, Baku already provided Ukraine with 10 shipments of humanitarian aid for the energy sector since the start of the full-scale invasion. This included 50 reserve power stations and 45 power transformers.
Ukrainian officials have warned that Russia would likely escalate its attacks against Ukraine's energy infrastructure in the coming fall and winter months. On Sept. 21, Ukraine's state energy operator Ukrenergo reported the first mass strike on the country's energy infrastructure in six months.
However, total energy consumption in Azerbaijan has fallen considerably in recent decades, from a peak of 261TWh in 1990 to 183TWh in 2021, according to Our World In Data. The government may have seen this as an opportunity to invest in large-scale renewables, at a time where total demand for energy is low, as changes to the Azerbaijani energy mix could be less disruptive than in prior years.
The news follows other clean power commitments in Azerbaijan, including a new 312MW project in Baku, and a deal signed between the government and TotalEnergies to build 650MW of wind and solar projects. These facilities will also be built in the Nakhchivan exclave, which sits outside the Azerbaijani borders, and could help the region improve its energy security.
"In addition, in 2031-2037, in order to produce and export green energy, hydrogen, and green ammonia, we plan to create about 19 GW of capacity along with international energy companies," Shahbazov added.
The minister also noted the intensive work required to organize the export of 4 GW of green energy along the Caspian-Black Sea-Europe corridor and more than 1 GW along the Azerbaijan-Turkey-Europe route.
Shahbazov also expressed his readiness to cooperate with companies involved in the production of wind turbines, as well as interest in launching the production of solar panels and energy conservation systems in Azerbaijan.
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These renewable energy projects are expected to help Azerbaijan save 300 million cubic meters of natural gas, equal to 10 percent of the total volume of blue fuel consumed by the country's population annually.
According to the document, the Absheron peninsula, the coastal areas along the Caspian Sea, as well as the Caspian basin, the Nakhchivan Autonomous Republic, and Baku are considered suitable for developing wind energy projects. At the same time, Baku, Kur-Araz lowland, Absheron Peninsula, and the Nakhchivan Autonomous Republic are deemed suitable for developing solar power projects.
Estimates put the renewable energy potential of Azerbaijan at 27,000 MW, including solar energy at 23,000 MW, wind energy at 3,000 MW, bioenergy potential at 380 megawatts, and mountain river energy at 520 megawatts.
The Government of the United States of America and the Government of the Republic of Azerbaijan held the tenth annual bilateral security dialogue on July 9-10 in Washington DC. The U.S. delegation was led by Department of State Acting Assistant Secretary for the Bureau of Political-Military Affairs Stephen D. Mull and Deputy Assistant Secretary for European and Eurasian Affairs Matthew Bryza; the Azerbaijani delegation was led by Deputy Foreign Minister Araz Azimov.
The delegations included senior-level representatives with security-related responsibilities. Representatives from several bureaus within the Department of State, Department of Defense, Department of Homeland Security, and Department of Treasury attended. The Azerbaijani delegation included senior-level representatives from the Ministry of Foreign Affairs, Ministry of National Security, Ministry of Defense, Ministry of Emergency Situations, Ministry of Internal Affairs, State Border Service, State Customs Committee, and the Special State Protection Service.
The Government of the United States of America and the Government of the Republic of Azerbaijan share a broad range of national security-related interests. Security does not rest on military means alone; democratization is essential for long-term security. The United States Government, committed to Azerbaijan's sovereignty, independence, and territorial integrity, seeks continued progress in all three shared policy priorities: security cooperation, energy cooperation, and promoting democracy through political and economic reform.
We consulted and agreed on next steps on a broad array of national and regional security issues, including our counterterrorism cooperation, maritime and border security programs, nonproliferation concerns, missile defense, critical energy infrastructure protection, Azerbaijan's relations with NATO and related security sector reforms, and Azerbaijan's current chairmanship of the Organization for Democracy and Economic Development GUAM.
The bilateral security dialogue is a results-oriented forum that seeks to intensify our bilateral security cooperation. We will use a range of implementation tools to follow up on the important topics discussed today.
The next meeting will take place in July, 2008. 2007/565
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