Capacity Building in the Deployment of Renewable Energy Sources in Azerbaijan Siyavush Azakov Baku Higher Oil School International Conference “THERMAM

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Capacity Building in the Deployment of Renewable

Energy Sources in Azerbaijan Siyavush Azakov

Baku Higher Oil School

International Conference “THERMAM 2015”, 17-18 September 2015, Baku, Azerbaijan


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Plan of the presentation

• RES in the world• RES in Azerbaijan• Capacity Building• Policy and Regulatory Capacity Building• Technical Capacity Building through

Education and Training• Creation of the Center in BHOS


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Some facts about RES• The amount of energy from

the sun that reaches Earth each day is enormous. All the energy stored in Earth's reserves of coal, oil, and natural gas is equal to the energy in just 20 days of sunshine.

• Half of all solar panels produced in the world up to now are installed in Germany.


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Renewable Energy Sources in the World

• According to the research done in the framework of United Nations Environment Programme, in recent years the world has witnessed a rapid growth in the production of alternative and renewable energy.

• Technologies perfected every year help the steady reduction of its cost.


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RES in the World

• A landmark in this sense appeared in 2014, when the world was put into operation a record 103 GW power of renewable energy sources (RES), which in total is comparable with the power of all US nuclear reactors.


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RES in the world

• Investments in renewable energy increased in 2014 by 17% in comparison with the previous year.

• The global amount of investment in it has already exceeded $ 1 trillion dollars while investing in only one wind power reached a historic high - $ 99.5 billion.


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RES in the world

• In California's Mojave Desert a giant solar plant Ivanpah was opened . Electricity generated by it, is enough for 100,000 homes.

Here are just a few examples relating to 2014.


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RES in the world

• The price of solar panels has now fallen so far worldwide that, in sunny climes, they can compete on cost with any other form of energy generation. Photo credit: Michael Mees, Creative Commons


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RES in the world • In the United States recorded

the most important fact: the cost of electricity generated using renewable energy sources is lower the cost for electricity produced in the traditional gas and coal-fired power plants.

Today, the cost of "solar" energy is equal to 7.2 cents per kWh from wind energy - 3.7 cents with a downward trend. Whereas the selling price of kWh at coal plants comes to 14.5 cents, and gas - to 8,7 cents in recent years is virtually unchanged.


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RES in the world • In Denmark, the wind turbine is running at record capacity of

8 MW, able to "feed" the 7 500 average European households.

• Denmark is generally "champion" of the world by the amount of energy produced by wind turbines behind. The government plans - a complete switch to alternative energy sources by 2050.

• This problem seems to be quite feasible, considering that already on wind power accounts for about 40 % of the energy generated in the country.

• The latest figures put the country well on track to meet its 2020 goal of getting 50 percent of its power from renewables.


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Wind Turbines in Denmark


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RES in the world

• The study done by the China National Research Institute for Energy and the Chinese State Research Institute network share of generation from renewable energy sources in China will reach 86% by 2050.


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RES in the world

• In 2014 renewables became the leading source in electricity generation. Germany is now one of the top five countries in terms of capacity, production and investments.

• If the expansion plan is followed, renewables should cover at least 40% of Germanys electricity demand in 10 years time.


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RES in the world

• About 1.5 million photovoltaic systems with a total capacity of 38 GW are installed in Germany, ranging from small rooftop systems to large solar parks.

In 2014 photovoltaics produced approximately 6.9 percent of Germany’s net electricity consumption. On sunny days, solar power can cover 35 to 50 percent of the momentary electricity demand.


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RES in the world• 24,867 wind turbines

with a capacity of 38 GW were in operation in Germany at the end of 2014.

• The wind energy industry has become an enormous economic factor, with a 12.3 billion euro investment in Germany in 2014 and more than 137,800 people employed in the sector.


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RES in the world• While wind turbines

of 2-3 MW are the most common in Germany, turbines of 3-5 MW size are starting to establish in the onshore market.

The average wind turbine diameter has now increased to 99 meter and the average nominal power to 2.7 MW.


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RES in the world

Germany gets much of its renewable energy from wind farms like this one in the North Sea. (Photo: Christian Charisius/Reuters)


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RES in the world

• Germany’s energy transition, or Energiewende as it is also known, is a long-term plan to cut carbon emissions by replacing fossil fuel resources with renewable energy sources.

• But how popular is the ambitious green energy plan among Germans?

• The Agency of Renewable Energies did a survey on acceptance of renewable energy and found out that a majority of 92 percent will support an increasing development and use of alternative sources.


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RES in the world

Source: International Renewable Energy Agency

http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_Capacity_Statistics_2015.pdf


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RES in the world

Source: International Renewable Energy Agency

http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_Capacity_Statistics_2015.pdf


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To 100% clean, renewable energy by 2050.

• Mark Z. Jacobson and his colleagues from Stanford University developed a plan to convert U.S. to 100% clean, renewable energy by 2050.

• The same they have done for other 139 countries (including Azerbaijan) in the world.


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To 100% clean, renewable energy by 2050.

• Plans call for aggressive changes to both infrastructure and the ways we currently consume energy, but indicate that the conversion is technically and economically possible through the wide-scale implementation of existing technologies


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RES and Azerbaijan

• Although Azerbaijan remains an energy rich country, it has greatly invested in the alternative energy sector in order to not only diversify its portfolio but also protect the environment.


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RES in Azerbaijan

• The development of renewable energy sector - a relatively new branch of Azerbaijan.

• Today, about 10%, or about 2.5 billion kWh produced annually in all of our country's electricity on the share of renewable sources.

• At the same time more than 90%, of this energy is provided by hydroelectric power plants (many of which were built in Soviet times), although there are a lot of opportunities to use wind, solar, biogas, etc.


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RES in Azerbaijan

• Currently, the share of energy produced by alternative energy sources (solar, wind, biomass, geothermal) (without energy produced by small hydroelectric power plants) in Azerbaijan is less than 1%.


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RES in Azerbaijan

• The developing of the use of alternative and RES started in Azerbaijan by the initiative of the President of Azerbaijan after his Order number 462 signed in 21 October 2004 to implement "The State Program on use of the Alternative and Renewable Energy in Azerbaijan Republic ".


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RES in Azerbaijan

• In accordance with the State Program the State Agency on Alternative and Renewable Energy (SAARES) has been created in 2009 under the patronage of the Ministry of Industry and Energy of Azerbaijan.

• In 2013 the State Agency was re-reformed and separated from the Ministry as independent institution.

• A new "AZALTERNATIVENERJI" LTD was created under its' patronage.


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RES in Azerbaijan

• Employing the full potential of renewable energy sources, Azerbaijan is going to increase their share in the total volume of electricity production to 20% to 2020.

• It is expected that within five years, the share of solar power in the total production of electricity from alternative and renewable sources will reach 40%, wind - 28%, bioenergy (biogas) - 8%.

http://www.visions.az/uploads/articles/journal_july_august_2013/article_energy/large/energy_article_big.jpg


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Investments to RES sector in 2004-2014

From the booklet of SAARES


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Investments to RES sector in 2014

• In 2014, investments in the development of Azerbaijan's alternative energy sector reached 63.6 million manats ($60.6 million), some 34.9 million manats ($33.25 million) of which were allocated to developing solar power, while 28.7 million manats went to wind energy.


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RES potential in Azerbaijan

• Thanks to natural conditions, the total potential of alternative and renewable energy resources in Azerbaijan exceeds 12,000 MW.

• Solar accounts for most of this potential at 5,000 MW, while wind accounts for 4,500 MW, biomass for 1,500 MW, geothermal energy for 800 MW, and small hydro power plants for 350 MW.

• Preliminary studies show up to 100 objects for alternative energy are planned to be constructed in Azerbaijan in five coming years (2015-2020).


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RES potential in Azerbaijan

• Development of renewable energy in Azerbaijan will reduce the use of oil and gas in the domestic market and increase its export volumes.

• As clean energy plants can be located near the users of the power, they will also cut the costs of upgrading networks and reduce the losses during electricity transmission.

• In addition, the renewable energy industry development will give a good impetus for the innovative development of the economy and will create new jobs.


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Strategic Plan of SAARES• In accordance with the Strategic Plan of SAARES it is

planned, that in 2015-2018 there will be constructed electric power plants which will have a power:

• for solar (photovoltaic) energy 369 MW• for wind energy 187 MW• for bioenergy energy 63 MW• for small hydro energy 116 MW• in total 735 MW(from the site of SAARES)


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Surakhani Solar Power Plant

• Surakhani SPP is built and managed by the "Azalternativenergy" LTD under the patronage of the SAARES.

• The power of the plant built with the help of local materials and equipment is 2.8 MW.

• The construction of the plant started in 2014 in March and ended the same year in July 16.


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Surakhani Solar Power Plant

The capacity of the plant for now is 4.4 million kWh per year, but when it'll operate with all its' potential it will produce 6.2 million kWh of electricity per year. When the station will operate with all its' potential 1.5 million cubic meter of natural gas will be saved.


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Pirallahi Solar Power Plant

• The construction of Pirallahi SPP started in 2014 with projected power up to 2.8 MW in Baku Pirallahi region, and the part of it on 1 MW power were put in operation.

• The plant will be put into operation with all its' full potential in 2015.


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Gobustan Experimental Polygon and Training Center

• AZALTERNATIVENERJI LTD subordinated to the SAARES runs the Gobustan Polygon, which covers 38 hectares and has wind, solar and biogas power plants.

• Wind PP-2.7, Solar PP-1.8 MW, Biogas PP -1 MW


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“Azguntex” LLC

“Azguntex” LLC built by the SAARES in Sumgait combines two plants: Azguntex plant of sun modules and Azguntex plant of LED lighting


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Modules are guaranteed for 25 years and fitness period to usage is 30-40 years. Azguntex technology produces 60 cells multi crystal modules and 14 raw materials are used to make these solar panels.


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Offshore wind energy in Azerbaijan

• The country also plans to use the windy Caspian Sea to expand its alternative energy potential.

• Wind farms are expected to be constructed in the offshore area that has a great wind potential.


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• The Agency is now focusing on one of the largest renewable energy projects - the first offshore wind power project in the former Soviet area.

• The 200-MW project will supply energy for several oil producing enterprises in the Caspian Sea. It will be built between the two oil-extracting platforms near the Pirallahi Island.


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• The construction is expected to commence in 2017/2018, adding that the plant can be commissioned within two to three years after that.

• The construction of the station will cost 450-500 million manats ($427-$475 million). It will be built between the two oil-extracting platforms near the Pirallahi Island


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RES in Azerbaijan

• Despite impressive growth over the past two decades, the renewable energy industry in Azerbaijan continues to face obstacles and will require considerable intellectual and material investment to operate at scale.


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Capacity building

• The strategy for capacity building for deploying renewable energy should consist of a set of actions in a number of essential areas:

• institutional, • policy and regulatory capacity building, • capacity building on financing renewable, • capacity of private sector actors, • technical capacity building through education and

training, • capacity in data and information collection, • capacity to achieve behavioural change and raise

awareness


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Capacity building

• By our opinion the main obstacle for the widespread introduction of renewable energy in Azerbaijan is the lack of legislative support and qualified personnel.


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Policy and Regulatory Capacity Building,

• SAARES prepared a draft setting out the national strategy for the use of alternative energy sources for the period 2012-2020.

• It was submitted to the Cabinet of Ministers for approval but currently remains pending.

• This draft strategy is in line with EU 2020 targets and projects the following figures for 2020: 20% reduction of GHG emissions; 20% share of RE; and a 20% increase in energy efficiency.

• It also envisages the development of wind and solar power as well as the usage of biomass, solid waste, solar thermal installations and an increase in small hydropower.


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• Aiming to develop the necessary legal framework during 2010-2011, the International Ecoenergy Academy implemented a project called "Improvement of Azerbaijan's legislation relating to Renewable Energy Sources and Energy Efficiency and bringing it in conformity to the EU legislation" .

• The project undertook substantial efforts for developing the necessary legal framework, developing draft laws and standards regulating the development of renewable energy sources as well as energy conservation.


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• Among these initiatives are the draft laws "On Energy Saving and Increasing Energy Efficiency" and "On Utilization of Renewable Energy Sources" and, in addition, 21 secondary legislation documents for ensuring the implementation of these laws.


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Technical capacity building through education and training

• In order to ensure sustainability of the renewable energy technology deployment; quality of training and quality of management are fundamental.

• Such initiatives must be supported which will help to build a critical mass of human capital with up to date knowledge and expertise in the latest technologies and best practices.


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Center in Baku Higher Oil School

• The authority of the Baku Higher Oil School (BHOS) has decided to create the Center of Energy Efficiency, Energy Management and Renewable Energy affiliated to the School.


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Most important facts about BHOS

• Education is in English. • Our lecturers and instructors have an experience to teach

on the modern international level. • Curricula which were developed are similar to those in

well known universities in Europe, USA, Japan, China etc. • Since education is in English the BHOS graduates will

have more possibilities to be hired internationally (Career perspectives).

• We get generous support from SOCAR for creation of infrastructure and laboratories.


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Most important facts about BHOS

• BHOS signed Memorandum of Understanding with Houston University (Texas, USA) and Aachen University (Germany) in collaboration in the field of Energy Efficiency, Energy Management and Renewable Energy.

• In this field we agreed about cooperation with such companies as Schneider Electric and E.ON Company (Germany).


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• The main goal of the Center is to form and implement an integrated system of educational, scientific, informational and organizational measures for the training of engineering personnel for Azerbaijan aimed at resolution of the issues of energy efficiency and conservation including the wide application of renewable energy sources and able to solve these issues using international advanced experience.


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• Alongside with the traditional courses for energy engineers the students with the major “Renewable Energy Engineering” will receive knowledge enabling them to solve economic and ecological issues of energy consumption.

• Objects of professional activities of the specialist are: processes and devices for conversion of different energy kinds; systems of energy supply for enterprises, buildings and other structures; systems for thermal and electric energy transport.


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• Fundamental natural science disciplines: Mathematics, Physics, Chemistry and Information and Communication Technologies

• Basic engineering disciplines: Fundamentals of Mechanical Engineering,

Thermodynamics, Advanced Engineering Programming


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• “Energy-Ecology-Technology-Society”, “Fundamentals in Electronic Engineering and Electronics”, “Electrochemistry for Renewable Energy”, “Components of Photovoltaic Power Systems”, “Electrochemical Energy Conversion”, “Electrical Machines and Drives”, “Materials for Renewable Energy Applications”, “Components of Solar Thermal Systems”, “Light and Illumination Technology”, “Energy Systems Instrumentation”, “Control Theory”,


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• “Sensor Technology”, “Measurement Instrumentation Control Techniques”, “Fundamental in Biomass Utilization”, “Geothermal Energy”, “Economics”, “Regenerative energy”, “Programmable logic controllers”, “SCADA for Renewable Energy”, “Hydro Power”, “Wind Power”, “Process Control”, “Interfaces and bus systems”, “Renewable Energy Transportation Systems”, “Wind Converter Technology”


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• The Center will have training laboratories for practical lessons, which, within the extent of renewable energy sources, comprise studies of wind power units, solar collectors, photovoltaic systems, biomass pyrolysis, heat pumps, fuel cells.


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• Engineers of this major are needed in energy services of enterprises, institutions and organizations of the Republic, in design companies, research and educational institutions, in structures of government, territory and economy sectors management.

• The analysis of RES use in the Republic shows that the significant portion of their potential is still in the reserve. It is, to some extent, determined by a lack of qualified personnel in this field; the annual demand in professionals may be estimated as 20-30 higher education graduates.


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Thank you for your attention

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Capacity Building in the Deployment of Renewable Energy Sources in Azerbaijan Siyavush Azakov Baku Higher Oil School International Conference “THERMAM