BAKU, Azerbaijan, May 4. Azerbaijan is getting ready for the first auction on renewable energy projects, the country’s energy ministry told Trend.
“Azerbaijan has taken important steps to improve the legal framework for using renewable energy sources and eventually adopted a law in 2021 on use of renewable energy in electricity generation. The law identifies auctions and direct involvement depending on the strategic importance of projects as the two ways of implementing alternative energy projects in a more effective and competitive environment. As part of these efforts, a draft rule of selecting electricity producers on the territory of renewable energy sources has been worked out and submitted to relevant state structures. The process of organizing the auctions will start after the document is approved. The auctions will primarily cover wind and solar energy projects,” the ministry said.
The ministry noted that the European Bank for Reconstruction and Development (EBRD) is engaged in the project on Support for the Implementation of Renewable Energy Auctions in Azerbaijan.
“It is planned to determine the auction rules, set of terms for auctions, as well as to work out sale and purchase agreement for electricity. At the same time, preparations are underway for the first auction,” said the energy ministry.
---
Follow the author on Twitter: @Lyaman_Zeyn