Main Mission: to supply the Republic of with reliable and high quality electric power

AzerEnergy OJSC

AzAlternative Energy “AzerIshig” OJSC Supply of electricity Other organizations

Energy production, State and Private organizations

The structure of Azerbaijan Electric Power Industry “AzerIshig” OJSC established 8 Regional Energy Supply and Sales Departments (RESSD) in 70 regions and cities of the Republic of Azerbaijan. •Yasamal RESSD •Qaradagh RESSD • Narimanov RESSD •Nasimi RESSD •Sabail RESSD •Khatai RESSD •Nizami RESSD •Surakhani RESSD RESSD •Khazar RESSD •Binagadi RESSD •Sabunchu RESSD •Mashtaga ESSD •Zira ESSD •Khirdalan ESSD •Qobustan ESSA •Baghlar ESSA

• Ganja EN • EN • Samukh EN Western RESSD • REN • Tovuz REN • Gadabay REN • REN • Gazakh REN • REN • Bilasuvar REN • Jalilabad REN • Yardimli REN Southern RESSD • Lerik REN • REN • Astara REN • Masally REN

• Shirvan REN • Hajigabul REN • Salyan REN Shirvan RESSD • Neftchala REN • Saatly REN • REN

• REN • Guba REN • Gusar REN Northern RESSD • Sumgayit REN • REN • Shabran REN • Siyazan REN • Gabala REN • REN • Oghuz REN • Shaki REN North-western RESSD • Balaken REN • Zagatala REN • Gakh REN • REN

• REN • REN Aran RESSD • Agjabedi REN • Fizuli REN • REN • REN • REN

• CEN • REN • Barda REN • REN • Agdash REN Central Aran RESSD • Naftalan REN • REN • Ujar REN • Aghsu REN • REN • REN Total installed capacity by AzerIshig OJSC is more than 10 000 megavoltampere. Technical Electric Power Loss by AzerIghig OJSC is 10%. Total number of 110 kV substations is 116. Total number of 35 kV substations is 577. Transformer and small transformer stations: Total number- 52000 110 kV power transmission lines: total length – 1820 km,

35 kV power transmission lines: total length – 6000 km,

6,10 kV power transmission lines: total length – 29500 km. SUBSCRIBERS OF “AZERISHIG” OJSC

Baku Other regions AzerIshig Total Subscribers region Population 843 708 1500 888 2 344 596 Entities 61 819 116 633 178 452 Total 999 125 1 617 521 2 523 048

Total subscribers (2 523 048)

Entities- 178 452 Population- 2 344 596

Annual average consumption rate: approximately over 20 billion kWh. Integration of “AzerIshig” OJSC to modern smart systems

Smart digital equipment is widely used in distribution grids of AzerIshig OJSC to organize the management more efficiently. Digital relays and other smart devices enable to form the substation automation and to connect to SCADA system. Besides gas isolated electric power distribution equipments are widely used in high and medium voltages. The smart electric equipment have the following advantages: - Minimum dimensions; - Long-term and easy maintenance; - Minimum technical electric power loss; - Remote control and management; - Integration to smart grids. SCADA

SCADA system of “AzerIshig” OJSC increases the efficiency of electric power supply. Formation of central SCADA system has the following advantages:

- Efficient organization of real-time operations; - Speedy operation conversions; - To overcome the accidents in real- time; - Possibility to prepare the forecasts about the maintenance of power equipment. Test and diagnosis

The following advantages are achieved by using the advanced technologies in testing and also in diagnosis in AzerIshig OJSC.

- More precise diagnosis of the current condition of the power equipment; - Quicker finding of damages; - Prevention of damages; - Preparation of forecasts about maintenance of power equipment. METERS

“Azerishiq” OJSC widely uses British AMPY and Turkish MAKEL type electronic meters. Besides, currently smart SMS meters are applied currently as well. These types of meters allow for two-way communication between users and the grid and support integration into smart grids.

SMS meters have the following advantages: - Distant reading of meter consumption by sending a message; - On-line top-up of account with a message; - Possibility to define 4 different tariff scale from remote; - Possibility to control energy consumption; - Possibility to connect/disconnect the meter remotely; - Individual control of the account of a subscriber; - Sms-notification service about decrease of balance. Reconstruction and construction of substations in 2007-2016

50 45

40 25 25

22 30 35 Cəm 15 35 kV 20 12 110 kV 21 15 22 8 7 10 6 14 9 4 4 10 4 5 2 7 4 4 3 3 0 2 2 2 1 TRAINING CENTER

Dual system of Training Dual Training System: Education according to dual system helps efficiently the listeners to master in knowledges and abilities in practical and theoretical ways. Training subject is taught in laboratory, shop and production sphere both theoretically and practically by qualified engineers. The students practice in production process as a context of educational program next to theoretical knowledges gained at the Educational center. CIRCULAR SYSTEM

110 kV circular system was installed in Baku network with the purpose to supply Baku with reliable and efficient energy. 110 kV Circular scheme among “Mushfig”, “Khirdalan” and “Hovsan” joint substations 110 kV Circular scheme between “Mushfig” and “Khirdalan” joint substations 110 kV Circular scheme between “Khirdalan” and “Nizami” joint substations 110 kV Circular scheme between “Sangachal” and “Mushfig” joint substations 110 kV Circular scheme connecting 220 kV “Senaye Govshagi”, Zabrat substations and 3 “Senaye Govshagi”, “Temiz sheher and “Shimal” power plants POWER GENERATION SOURCES OF GENERATION Currently there are 14 heat power plants (6000 MW) and 16 water power plants (1200 MW). The capacity of alternative energy sources is approximately 260 MW. The installed capacity of the system is 7460 MW. Peak loading is approximately 6 GW.

WPP and alternative and renewable energy sources

4% 17% Installed capacity

HPP 6000 MW 7460 MW WPP 1200 MW Alternative and renewable 260 MW 79 % Peak loading: 6 GW

HPP Number of blocks and WPP Installed capacity Power Plants installed capacity (MW), (is property of) fuel type Mingachevir WPP 402 MW Azerbaijan HPP (state) 8 (2400), gas Shamkir WPP 380 MW Shirvan HPP (state) 6 (900), masut (fuel oil) Yenikend WPP 150 MW “Southern” PP (state) 6 (780), gas-vapor Varvara WPP 16 MW Sumqayit PP (state) 3 (525), gas-vapor Araz WPP 22 MW “Northern” HPP (state) 1 (400), gas WPP 25 MW “Sangachal“PP (state) 18 (300), gas-vapor Shamkirchay WPP 25 MW Baku HPP (state) 12(107), gas-vapor Takhtakorpu WPP 25 MW “Baku” PP (state) 12 (104), masut (fuel oil) Ismayilli – 1 small WPP 1.6 MW “Shahdag“ PP (state) 12 (104), gas Ismayilli – 2 small WPP 1.6 MW “Astara“ PP (state) 10 (87), gas Gusar – 1 small WPP 1 MW “Shaki“PP (state) 10 (87), gas Bilev WPP 22 MW “Khachmaz” PP (state) 10 (87), gas Arpachay – 1 WPP 20.5 MW PP (state) 10 (87), gas Arpachay – 2 WPP 1.4 MW Nakhchivan HPP (state) 4 (64), gas Goychay small WPP 3.1 MW Vaykhir WPP 5 MW INCREASE DYNAMICS OF INSTALLED CAPACITIES

Installed capacity GW

7

6 7.1 7.2 7.3 7.4

5.66 5.68 5.72 6.25 6.3 6.3 5.63 5.73 5.8 6.32 5 GENERATION INDICATORS

7% Faydalı yanacaqlar 93 % ØUseful fuel 93 %

Digər mənbələr 7% ØOther sources 7 %

ØPower generation per capita in 93% Azerbaijan: 1 475 kWh Generation, billion kWh

25

20

21 21 24 22 23 24 24 20 18 18 15 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Volume of natural gas consumed for power generation in 2015-2016: 4 billion 689 million cubic meters IMPORT-EXPORT OF ELECTRIC POWER

Existing export lines (power transmission line):

Azerbaijan-Georgia 500 kV «Samukh-Gardabani» PTL

Azerbaijan-Russia 330 kV «Derbent» PTL 110 kV «Yalama» PTL Azerbaijan-Iran 230 kV «I Parsabad» PTL 330 kV «II Parsabad» PTL 110 kV «Astara» PTL 132 kV «Julfa» PTL 132 kV «Araz» PTL Azerbaijan-turkey 154 kV «Nakhchivan-Igdir» PTL

Azerbaijan has a capacity to export 2.1 billion kWh power. High tension PTL and connection with neighboring countries

Ø Total length of 220, 330 and 500 kV lines is 7 330 km. ALTERNATIVE ENERGY POTENTIAL OF AZERBAIJAN

Potential of water power is nearly 16 GW. There is also favourable conditions for wind and solar power. Average annual wind speed is 7.0-8.5 m/second and number of windy days is 245-280. Numbers of sunny days and hours are 250 days, 2000- 3000 hours and annual solar power to 1 square meter area is 1350-1750 kWh. PRIORITIES

Wind Peninsula Taking into consideration the potential of alternative and renewable energy of the Republic of Azerbaijan, the development of this sector is considered as a high-potential one. Until 2020 all cities and regions will be supplied with hybrid type power plants. Generally it is planned 420MW increase in alternative and renewable energy sources. - Wind 350 MW - Solar 50 MW - Biomass 20MW

Development of alternative and renewable energy sources in our country and integration of electric power industry to smart systems lay a basis for formation of smart grids in the nearest future. Smartgrid THANK YOU FOR YOUR ATTENTION!