Azerbaijan needs to double down on excellence in financing energy transition - BCG

BAKU, Azerbaijan, September 29. Azerbaijan needs to double down on excellence in financing energy transition, Anton Kosach, managing director and partner at Boston Consulting Group (BCG), headquartered in Boston, Massachusetts, told Trend.

“Hydrocarbons remain an important part of the energy balance around the world and in Azerbaijan. However, to stay competitive internationally and effectively develop the resource base, decarbonization is essential. This process is also crucial to strengthen the status of a reliable supplier of affordable high-quality energy resources for the EU countries and other major markets,” he said.

Kosach noted that the “decarbonization race” began in the 2010s and boomed in 2020-2021.

“Around this time, Azerbaijan set ambitious goals to reduce emissions by 30% by 2030. With only 7 years remaining until 2030, this timeframe roughly aligns with a single investment cycle for major companies. To realize announced plans and bridge the gap with those market players who started much earlier, the country needs to double down on excellence in delivering and financing energy transition in renewables. It needs to be pressure-tested to be delivered on time and budget and should be supported by joined effort from regulator, engineering and financial organizations,” he said.

Anton Kosach went on to add that ensuring the availability of qualified personnel is vital, particularly for emerging sectors of the economy.

“The establishment and implementation of the new ?curriculums and retraining programs for the new professions are top-priority tasks that need to be completed within a year or two,” he noted.

According to data released by Azerbaijan's Ministry of Energy, electricity generation from renewable sources, including hydroelectric power plants, surpassed 1.5 billion kWh between January and August 2023.

During this period, hydroelectric power plants (HPPs) contributed 1.2 billion kWh, while wind farms generated 41.7 million kWh, solar power plants produced 46.9 million kWh, and Solid Waste Incineration Plants (SWIPs) contributed 160.5 million kWh to the total electricity output.

Renewable energy sources accounted for 8 percent of Azerbaijan's total electricity production during this reporting period.

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