Munich Security Forum confirms energy partnership efficiency with Azerbaijan
Anaysis by Caliber.Az

ANALYTICS  18 February 2023 - 13:13

The Munich Security Conference has recently kicked off in Germany. The aspects of the war in Ukraine, the policy of NATO member states in this context, and threats to world security are among the main topics of the three-day forum. The world leaders who have gathered at the conference will also discuss the West’s relations with Russia and China, energy and environmental issues, the prospects for lowering inflation, and opportunities to stimulate the global economy. Azerbaijani President Ilham Aliyev who delivered a speech at the round table "Pipeline Dreams: Energy Security of the Future" is also taking part in the Munich Security Conference. The president will also participate in a panel discussion on security issues in the South Caucasus.

The 59th Munich Security Conference, the most important international forum on strategic issues of politics, defence and economy, brought together over 150 representatives of different countries this year, including 45 leaders of states and governments, 83 foreign ministers, heads of military agencies, and representatives of NATO, the UN, the European Union, etc.

This time the Russian delegation will not attend the forum. The organisers of the Munich Security Forum announced that a decision was made not to invite representatives of the Russian Federation not to turn the forum platform into a platform for the dissemination of Russian propaganda.

Besides the conflict over Ukraine, threats to global security and the global consequences of Russian aggression, the agenda of the forum includes the nuclear threat from Iran, the situation in the Indo-Pacific region and the Middle East, as well as the growing tension between Western countries and China.

The forum participants will pay attention to the problems of hunger and poverty in the world, environmental protection, and for this purpose, representatives of the Global South, that is, countries of Asia, Africa, South America and the Caribbean, having, according to the World Bank, the extremely low income per capita, will attend the forum.
Much time at the forum sessions is expected to be devoted to the energy crisis and negative climate change.

The forum participants will pay special attention to the government’s commitments to the use of "green" energy sources, as well as the risks arising in this sphere due to energy security problems.

Great difficulties in this regard have been observed in the countries of the Old World for the second year.

In this regard, the European countries will continue discussing how to ease the severe collective restrictions on state subsidies to the electricity industry and how to respond to the US law to reduce inflation, as well as the corresponding protectionist measures in the US market.

The forum will be also devoted to cybersecurity issues and the need for collective global efforts to develop technologies in this sphere.

Thus, it is planned to intensify cooperation between the EU and the US by adopting common standards in the field of technologies and cybersecurity, as well as by creating a reliable and secure information environment.
In particular, attention will be focused on the law on digital services and digital markets, aimed at creating a safer online environment, protecting user rights, revealing and eliminating economic barriers and organising equal conditions for business.

This year, a lot of time will be devoted to aspects of security in the South Caucasus, as well as the role of this region in ensuring Europe’s energy security within the discussions at the forum.

Azerbaijan’s importance in oil and gas production and energy supplies in the western direction today can hardly be overestimated. This message was voiced during Azerbaijani President Ilham Aliyev’s speech at a round table “Pipeline Dreams: Energy Security of the Future” on February 17.

While speaking about Azerbaijan’s role in ensuring Europe’s energy security, President Aliyev noted that the increase in the volume of Azerbaijani gas supplies last year was a great contribution to this sphere in the short term. The president outlined the expansion of the Southern Gas Corridor as a goal in the medium and long term. President Aliyev also said that the volume of gas transportation via TAP is planned to be increased from the current 11 billion cubic metres to 20 billion cubic metres, while via TANAP - from 16 billion cubic metres to 31 billion cubic metres by 2027.

Gas production in Azerbaijan and its supplies abroad are steadily growing. Proceeding from the statistic, 19 billion cubic metres of Azerbaijani gas were exported in 2021, the export increased to 22.6 billion cubic metres in 2022, the total external supplies are planned to be increased to 24.5 billion cubic metres in 2023. At least 11.6 billion cubic metres of gas will be supplied to the European market this year. At the same time, the gas supplies are diversified in the western direction. The supply of Azerbaijani gas through the TAP gas pipeline to consumers in Italy, Greece and Bulgaria was launched on December 31, 2020, while gas has been supplied to Romania since January 1, 2023.

As far as the interconnectors are put into operation, gas will be supplied to Serbia, Hungary, and other countries in Southern Europe.

The president also reminded that the Memorandum of Understanding between Azerbaijan and the European Union (EU) on a strategic partnership in the field of energy, signed in Baku in July 2022 in the presence of President of the European Commission Ursula von der Leyen, opened a new chapter in the energy ties between the European Union and Azerbaijan and laid the foundation for a long-term partnership in the field of energy efficiency and joint projects for the production and export of "green" energy.

In this regard, President Aliyev announced important steps taken by Azerbaijan to develop renewable energy sources. A number of solar and wind energy projects are already being implemented in the country, and various documents have been signed related to the generation of up to 25 gigawatts of energy in the offshore wind energy sector.

Along with ensuring domestic consumption, it will be possible to export "green" energy from Azerbaijan to Europe.
“Azerbaijan will continue playing an important role in Europe’s energy security,” the president emphasised during the forum.

The Azerbaijani leader also met with the CEO of the German Eastern Business Association Michael Harms on the sidelines of the Munich Security Conference.

During the conversation, President Aliyev noted the high efficiency of the Azerbaijani-German business cooperation in the industrial and commercial sectors, and the high export rates last year, stressing that Azerbaijan has investment attractiveness for foreign companies.

The president informed Harms about the steps being taken to create a free trade zone in Azerbaijan and expand logistics and transport capabilities.

Stressing that there are ample opportunities for the activity of German companies in Azerbaijan, including their participation in restoration and construction work in the territories liberated from occupation, as well as in the renewable energy sector, the president invited German companies belonging to the German Eastern Business Association to visit Azerbaijan to review the situation on the spot.

Caliber.Az