EVs and renewables: Azerbaijan betting on future

Azerbaijani Prime Minister Ali Asadov has signed a decision aimed at promoting the use of electric vehicles in the country. The decision includes changes in the “Commodity nomenclature of foreign economic activity of the Republic of Azerbaijan, rates of import customs duties and rates of export customs duties,” Report informs.

According to the document, the import customs duty on motorcycles with a piston internal combustion engine with a cylinder capacity of no more than 50 cm3 and bicycles with an electric motor with a maximum speed of more than 50 km/h will be subject to a customs duty of 15%.

The measure, which comes into force on May 17, is part of a broader strategy aimed at expanding the use of electric vehicles in Azerbaijan. During yesterday’s meeting of the Cabinet of Ministers under the leadership of Ali Asadov, issues of creating the necessary infrastructure for electric vehicles, including a network of charging stations, as well as measures to attract business entities to this work were discussed.

Azerbaijan is not alone in its aspirations. Many countries around the world are taking similar steps to encourage the use of electric vehicles. In Norway, for example, electric vehicles already account for more than half of all new cars sold. China, which is the world’s largest producer of electric vehicles, is also investing billions of dollars in developing electric vehicle infrastructure.

The government’s new measures will certainly contribute to the growth of the electric vehicle market in Azerbaijan. It remains to be seen how quickly electric vehicles can replace traditional gasoline and diesel vehicles.

As throughout the world, in Azerbaijan availability of charging stations is the main factor influencing the sale of electric cars. If there is no way to recharge the car, there will be no point in purchasing electric cars.

As is known, for every ten electric vehicles there should be one charging station. Such standards are followed in countries where the population actively uses electric cars. Currently, there are about 4,000 electric vehicles and 87 charging stations in the republic, which are mainly located in Baku. This means that the number of charging stations in Azerbaijan should exceed 400. If we take into account that by the end of the year the fleet of electric vehicles can grow to 8,000 units, then 800 stations are needed.

It is more profitable for drivers to use electricity instead of fuel. For example, charging a vehicle from a 220-volt outlet costs five times less than gasoline. At commercial facilities, 1 kW/h will cost 0.20-0.50 manats. If the station is located outside the city, perhaps recharging the battery will cost more.

As is known, Azerbaijan has abundant solar and wind resources, which can be used to produce electricity for electric vehicle charging stations and other needs.

The government’s new measures will certainly help reduce greenhouse gas emissions, improve air quality and create new jobs. Electric vehicles produce no emissions, which helps reduce greenhouse gases in the atmosphere and mitigate climate change. Additionally, electric vehicles run on electricity that can be generated from renewable energy sources, which helps save fossil fuels for other uses.

In recent years, the Azerbaijani government has been actively investing in the development of renewable energy infrastructure, such as solar and wind power plants.

Additionally, in the future, the government may provide subsidies or tax breaks to electric vehicle manufacturers to make them more affordable for consumers.

Overall, the measures taken by the Azerbaijani government are aimed at creating a more sustainable economy that will be less dependent on fossil fuels.

According to the State Customs Committee, last year about 14,100 hybrid cars worth $386.3 million, as well as 3,100 electric vehicles worth $125.3 million were imported into the republic. That is, in 2023, the number of electric vehicles imported to Azerbaijan was 19 times more than in 2021.