International Forum “Investments in Renewable Energy for Sustainable Energy Development”

Orkhan Imanov Minsk, Belarus State Agency on Alternative and Renewable Energy Sources 22-23 April 2014 of the Republic of Azerbaijan

Establishment date 28 May 1918

Independence date 18 October 1991

GDP 2013 73.6 billion USD

Territory 86.600 sq. km

Population 9 477,1 thousands persons

State Agency on Alternative and Renewable Energy Sources of the Republic of Azerbaijan

AREA is the body of central executive power and carries out followings on RES:

- State policy and regulation; - Effective organization and coordination of activities; - State control. State Agency on Alternative and Renewable Energy Sources of the Republic of Azerbaijan

• AR MIE AREA was established due to the decree of President of AR dated July 16, 2009 • MIE AREA was annulled and State Company On Alternative and Renewable Energy Sources was established due to the decree of President of AR dated June 1, 2012. • AREA was established due to the decree of President of AR dated February 1, 2013 • State Company on Alternative and Renewable Energy Sources was restructured and established as “Azalternativenerji LLC in subordination of AREA due to the decree of President of AR dated February 1, 2013

I Liberal Investment Climate

No restrictions for Welcoming National regime for Incentives for foreign any type of foreign foreign investors investors policy investment

Guarantee against Guarantee of adverse changes in No discrimination compensation of the legislation, Guarantees policy damages and nationalisation and repatriation of profits requisition

Law on Investment Party to New York 46 bilateral Sophisticated Activity and Law on (1958) and investment treaties legal base Protection of Foreign Washington (1965) 44 double taxation Investments Conventions treaty

Azerbaijan Export Government and Investment National Fund for Azerbaijan Promotion support of institutional Investment Company Foundation Entrepreneurship support (AZPROMO) Ⅱ Domestic investments in RES

Experimental Hybrid Polygon  Azguntex PV module factory  Wind Power Plants  Solar Power Projects implemented in social buildings  Samux-agro energy complex  Pirallahi Solar Power Plant  ADA Geothermal plant  Hokmali Wind Power plant III Gobustan Experimental Hybrid Polygon

Wind Power Plant – 2,7 MW

Solar Power Plant – 1,8 MW

Biogas Plant – 1 MW

Heat pumps

Total capacity – 5,5 MW III Gobustan Experimental Hybrid Polygon IV “Azguntex” PV module factory

Production capacity of the first line: Polycrystalline modules: •The number of PV cells - 100 000 modules/year (25 MW) 60 •Capacity - 36 V 250 W Production capacity of the second line: •Size –997mm/1663mm

200 000 modules/year (50 MW) •Weight – 20 kg

Was put into operation : 24.04.2012 V Samukh Agro-Energy Complex

Wind 5 MW

Solar 5 MW

Biomass 2 MW

Geothermal 2 MW VI Wind Power Projects

• WPP within Gobustan Polygon 2,7 МW • Pirakushkul (South) WPP (2012-2015) 80 МW • (Stalchay) WPP (2012-2015) 5.3 МW • Khizi (Shurabad) WPP (2011-2013) 48 MW • Yeni Yashma WPP (2012-2015) 50,0 МW • Mushviq WPP (2012-2013) 8 МW VII Solar power projects implemented in social buildings

Secondary school № 149 in Bina Secondary school of № 166 Secondary school № 235 Children's Polyclinic №16 (60 kW Heating) (32 KW Electric, 60 kW Heating) (25KW Electric, 40KW Heating) (25 kW Electric, 40 kW Heating)

Biləsuvar rayonuda Masallı Sport Complex Secondary school № 320 Secondary school № 239 (6x50 KVt. elektrik, 6x135 KVt. istilik) (70 KW Electric, 90 KW Heating) (5 KW Electric, 3 KW Heating) (25 KW Electric, 40 KW Heating)

Turkan children orphanage (25 KW Electric) SOS Children and youth school Hovsan Dispensary Beylagan Sport Complex (20 KW Electric, 44 KW Heating) (10 KW Electric, 20 KW Heating) (70 KW Electric, 90 KW Heating) VIII International Cooperation

• European Union; • UN Development Program; • International Renewable Energy Agency (IRENA); • The World Bank; • Asian Development Bank; • KfW of Germany; • Organization of the Black Sea Economic Cooperation; • JICA; • KOICA; • INOGATE; • GUAM • IFC • Center for Renewable Energy Sources of Greece and etc. IX Foreign Investments in RES

As the result of the 13 mln Euro grant provided within Energy Reform Support Program of EC, 2 law projects and 20 secondary legal normative acts were prepared. Installations of solar panels (PV modules) at boarding and secondary schools in Turkan district by grants of the Center for Renewable Energy Sources of Greece IX Foreign Investments in RES

 Loan agreement between IFC and Bank Respublika on the amount 15 mln USD that should be directed to the renewable energy sources sector.  Shaki Hydroelectric Power Plant 580 KW – that was constructed by the finance assistance of UN Development Program. It will be ready till the end of 2014. Thank you for your attention!

AZ1000, Azerbaijan, , U.Hajibayov 80, Government House Tel.: (+99412) 493 15 26 Fax: (+99412) 493 16 97 E-mail: [email protected] State Agency on Alternative and Renewable Energy [email protected] Web: www.area.gov.az Sources of the Republic of Azerbaijan