Saturday, 04 May 2024 10:05

COP-29: Modern challenges and prospects of the power industry sector

The UN Climate Change Conference COP 29 is one of the largest international platforms addressing global climate change and bringing together representatives from all over the world. The Conference is regarded as one of the greatest platforms to address threats facing the world due to the climate change implications, and gives the participating countries an opportunity to put forward strategic proposals regarding climate change mitigation and catalyze positive changes. By engaging in such conferences, Azerbaijan uses the negotiations as a platform for exchanging viewpoints and proposals in the fight against climate change. In general, Azerbaijan focuses on measures for protection from and adaptation to the climate change effects. Hosting of COP29 manifests the country’s will and initiative in addressing the global challenges of climate change. Interests, economic, environmental and social strategies of states are planned to be discussed at the conference. They include both cultural and infrastructure development, and measures in the energy sector. 

• The COP 29 Presidency is committed to ensuring a transparent and inclusive process in the lead-up to COP 29 to be convened in Baku, Azerbaijan, from 11 to 22 November 2024.

• The Presidency will engage Parties throughout the year at ministerial, Heads of Delegation and technical levels, as appropriate, to lay the ground work needed to deliver a successful COP 29.

• To ensure coherence, the Presidency will work closely with the Chairs of the subsidiary bodies, with the support of the secretariat, on a common vision towards COP 29.

COP 29 – Energy sector

COP29 calls on the Parties to take actions towards achieving, at a global scale, a tripling of renewable energy capacity and doubling energy efficiency improvements by 2030.

• President of the Azerbaijan Republic Ilham Aliyev signed an order declaring 2024 the ‘Green world solidarity year’ in our country.

• The Ministry of Economy stated that the transition to a «green» economy and becoming a «green» energy supplier was among the priorities of Azerbaijan’s economic policy, and the given instruction of the head of state would stimulate initiatives in that direction.

• Azerbaijan committed to achieve a quantitative target of a 35% GHG emissions’ reduction by 2030 compared to 1990, and announced a target of 40% GHG emission reduction by 2050.

• The President of the Republic of Azerbaijan declared liberated Karabakh and East Zangezur, as well as the Nakhchivan Autonomous Republic, green energy zones.

The ‘Action Plan on the creation of a green energy zone in the territories liberated from occupation for 2022-2026’ was approved. The environmental protection is a priority in the large-scale restoration and reconstruction work running in the liberated territories. Innovative approaches such as a smart city and smart village are being applied in these areas, and the ecosystem is being restored.

According to the Azerbaijan Republic President’s order dated May 3, 2021 № 2620 “On measures to be taken to create a “green energy” zone in the Azerbaijan Republic territories liberated from occupation, it is envisaged to involve an international consulting company. Cooperation with the Japanese company TEPSCO has been started to execute the order. Meanwhile, a relevant concept document was prepared. The purpose of the concept is to supply the territory with eco-friendly green energy by utilizing the high potential of renewable energy available in the liberated lands, and to formulate proposals by exploring the prospects for the use of environmentally friendly and energy – efficient green technologies. To that end, energy demand models in the regions were worked out, using various scenarios.

COP 29 – Green energy zone

As part of creation of the green energy zone, generation of electricity from renewable energy sources at the liberated territories and improvement of energy efficiency, it is intended to apply electric cars, install renewable energy systems (especially solar panels) on the roofs of buildings, use solar LED lamps for street and road lighting, utilize renewable energy technologies in heating, cooling and hot water supply systems, as well as introduce intelligent energy management systems and energy-oriented waste management.

As part of large-scale activities in the liberated territories, digital substations have been built based on the requirements of the Green energy zone. These stations cover the area from the electricity generation point to the subscriber, as well as collect, monitor and manage real-time data across the grid. Digital substations have promoted the widespread use of renewable energy sources (primarily solar panels) in energy parks, as they facilitate the integration of green energy sources into the energy system.

So, solar panels are installed in the form of micro-solar power plants on the roofs of substations in energy parks. Annually, energy received from solar power panels/plants installed at all substations makes it possible to save 48 million kilowatt-hours of electricity and 12 million cubic meters of natural gas.

On the other hand, the shift from a three-phase power supply system with the voltage of 35/10/0.4 kV to a two-phase 35/0.4 kV system, and the phase out of 6-10kV distribution networks at the liberated territories, minimize technical losses in the green energy zone and prevent CO2 (carbon dioxide) emissions.

Special unmanned flying drones that Azerishiq OJSC uses to assess a technical state of network elements, including cable and overhead electricity transmission lines, help to reveal and fix breakdown points in a short time.

Facilitation of the use of electric vehicles across the country and, to that end, implementation of incentive measures are among the tasks assigned to Azerishiq OJSC within the framework of COP29.  

СОР 29 – Electromobility

Electromobility is an area that has gained particular importance in recent years and is promoted with the aim to use and develop electric vehicles. Given the role of electric vehicles in reduction of carbon dioxide emissions, improvement of energy efficiency and promotion of innovations in the transportation industry, it is of particular importance to encourage the use of sustainable and eco-friendly vehicles to speed up the transition to a cleaner and more sustainable transportation system. In this connection, it is necessary to form a legal framework ensuring the expansion of the use of electric vehicles, development of necessary infrastructure, as well as integration into the general transport system.

Hosting of the 29th Conference of the Parties to the UN Framework Convention on Climate Change in Azerbaijan outlines one of the national priorities of the socio-economic development of Azerbaijan up to 2030, articulated as the ‘Country of Clean Environment and Green Growth.’ The ‘Green World Solidarity Year’ is the manifestation of a purposeful and consistent policy that the state is implementing in this area. Technological advances and network infrastructure development are also progressing rapidly in the electric mobility sector.

The necessary tasks assigned to Azerishiq OJSC for the implementation of the Electric Mobility Program according to the Action Plan are laid out by the Roadmap for the year  2024 titled «Stimulation of the use of environmentally friendly and safe vehicles and improvement of infrastructure”:

Determining of required financial resources and implementation timelines with the aim to fulfill the following tasks;

Building of substations, grids, power centers/parks and infrastructure to supply electric vehicle charging stations with power;

Assessment of the energy potential of existing networks in the wake of rising number of electric vehicles;

Determination of the strategy for increase of the local networks’ capacity (by informing relevant institutions);

Implementation of pilot projects in priority areas capable of increasing electric mobility performance indicators;

Taking of appropriate measures to expand the use of renewable energy sources and install EV-charging stations in power parks.

To implement the State electromobility program without violating the rights of existing consumers, harming the energy quality and efficiency indicators (SAIDI/SAIFI, Service level, etc.) and disrupting the operation of distribution networks, Azerishiq OJSC has worked out an action plan and submitted it to the government for consideration.

In recent years, the number of used electric vehicles has been increasing in our country. According to the State Statistical Committee, a total number of cars in the country made 1,738,940 units for the year 2023. The analysis says that the growth rate of cars averaged 5.23% in 2019-2023. If we forecast an annual growth rate of 5.23% in the number of vehicles, a total quantity of vehicles will be 2,483,838 in 2030. Considering the statistical growth rates of electric vehicles across the country, electric cars will account for 16% of the car fleet in 2030 – 397,000 electric vehicles. The government incentives for electric vehicles are as follows: apply of VAT exemption on import and sale of electric vehicles; apply of VAT exemption on import of second and third level electric chargers, meant for electric vehicles, for a period of 3 years from January 1, 2022; increasing of the use of environmentally friendly vehicles and other «green» technologies to combat climate change; increasing of the number of electricity charging points and expansion of their coverage area across the country; implementation of measures envisaged by the roadmap for the year 2024 on stimulation of the use of environmentally friendly and safe vehicles and improvement of infrastructure; worldwide increase in the availability of electric vehicles (compared with previous years, the price for electric vehicles will decline and the intensive dynamics of decrease will remain in the coming years); low maintenance costs of electric vehicles (low electricity tariffs in Azerbaijan); implementation of other incentive measures by the state in the coming years (promotion of electric vehicles by favoring them rights to use bus lanes, parking points, toll roads, and by establishing «zero emission» zones restricting the entry of vehicles with internal combustion engines, etc.).

 So, the creation of a green energy zone in our country is successfully underway within the framework of COP 29. At the same time, measures have been taken to promote the use of electric vehicles in the liberated territories.

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