Alternative energy supports economy and ecology - ANALYSIS

According to the International Energy Agency (IEA), the alternative energy production, which has been growing since 2001, started to diminish last year. So, production of solar, wind, water, biological energies approximately increased by 180 gWh in 2018, same as in 2017.

As alternative energy sector should yearly be grown by 60% in order to fulfill conditions of the Paris Climate Agreement, which was signed by 195 states in December 2015 and envisages increase of annual renewable energy production by 300 gWh by 2030, the IEA’s concern is understandable. Because emission of carbon dioxide into the atmosphere in 2018 increased by 1.7% to 33 gigatonne.

IEA Executive Director Fatih Birol noted that energy sources should be connected to the existing energy networks most effectively and usefully.

Bloomberg experts think that solar and wind energy are already able to compete with gs electric stations. Dutch TenneT offered to provide energy supply to 5 coastal countries of the Northern Sea by creating a wind power hub in the middle of the sea. At the same time, Shell also intends to invest in pilot project on getting electricity from wind turbins in planers.

Along with this, cheapening of lithium ion batteries by 75% since 2012 also played a role in this issue. According to the experts of Global Battery Alliance, use of accumulators may help 1 billion people who face energy shortage.

According to annual report ‘Levelized Cost of Energy’ of Lazard agency, the price of solar and wind energy declined in 2018, while the price of electricity obtained from hydrocarbon combustion remained unchanged.

As is known, Azerbaijan established State Agency for Alternative and Renewable Energy Sources in 2013. In spite of joint pilot projects with EU on wind, solar and biological electricity, no progress has been observed yet, the agency was abolished. Currently, the main point it to draft a legal framework, and find the best way to connect the alternative energy with tradition sources. However, no necessary steps ae taken in this direction. There are some attempts for cooperation with foreign companies. For instance, Energy Ministry had signed protocols of intent with BP, Total, Eguinor for joint explorations of alternative energy sources last year.

According to specialists, the solar energy production in Azerbaijan is 5,000 mWh per year, wind power – 4,500 mWh, biological energy – 1,500 mWh, geothermal power – 800 mWh, small water power stations – 350 mWh. So, 25,300 mWh of total energy potential can produce 62.8 billion kWh per year.

In order to benefit from these opportunities, there is need relevant normative legal base and commercial conditions.

Mahmud Mammadli