Azerbaijan unveils reason for slow transition to renewable energy sources

Azerbaijani Deputy Energy Minister Elnur Soltanov has said that sometimes citizens wonder about slow implementation of renewable energy projects.

“The reason is the existing energy tariffs,” Soltanov told journalists, Report informs.

“We would like to receive offers in connection with these projects at reasonable prices. We daily receive offers with prices higher than the existing energy tariffs, but we cannot accept them. That is, the main limitation is related to finances. However, the experience gained at Lake Boyukshor will allow us to make a decision about expansion of this work. At present, tariffs for solar energy in Azerbaijan are 5.5 qapik (3.2 cents), while for wind power - 5.7 qapik (3.3 cents). These prices have been indicated in our contracts with Saudi Arabia’s ACWA POWER company and UAE’s Masdar company. That is, Azerenergy company purchases energy at this wholesale price and sells it to Azerishiq company at 6.6 qapik (3.8 cents). We would like to keep this tariff. There may be some other concessions, but an increase in tariffs is not discussed,” he noted.