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Alternative energy sector in Azerbaijan to be made attractive for private investors

The Norwegian company DNV GL will help create a support system in Azerbaijan in the alternative energy sector, the company’s Chief Consultant Ilka Lewington told reporters on Oct. 30.

The creation of such a system is provided for as part of the development of a draft law on renewable energy sources, Lewington said.

DNV GL won the tender of the Ministry of Energy of Azerbaijan and was selected as a consulting company to develop a bill and other legislation.

“The cost of production in alternative energy is constantly decreasing and this trend will also be observed in Azerbaijan. However, further development of the sector requires additional support.

Various methods are used in international practice – these are the introduction of incentives for tax and customs duties, subsidies from the state budget etc. In some cases, several types of benefits are combined. At the same time, the support system itself may change in the future,” Lewington said.

However, the Lewington added that countries often combine the introduction of benefits with the establishment of their own production. The implementation of this option in Azerbaijan is also planned for consideration.

“We will help create a legal framework for the renewable energy sector in Azerbaijan. Azerbaijan has a great potential in this sector. There is clear progress. However, to attract private investment and a large number of investors, both local and foreign, it is necessary to eliminate some obstacles,” Lewington said.

Lewington noted that the main task is to give investors confidence that the alternative energy sector will develop in Azerbaijan and it will be one of the main directions of development.

About Fidan Abdullayeva