The President of Azerbaijan approved the law “On the use of renewable energy sources (RES).”
The text of the law was published on July 12 on the website of the head of state.
The law defines the legal, economic and organizational framework for the use of renewable energy sources in general electricity generation, and regulates support mechanisms to stimulate the production of electricity from renewable energy sources.
According to the decree, the Cabinet of Ministers was instructed to determine the criteria for guaranteed tariffs when choosing an electricity producer within 9 months, as well as submit proposals to the President of Azerbaijan on the procedure for selecting electricity producers.
The choice of an electricity producer on the territory of renewable energy sources in Azerbaijan through direct participation will be carried out with the consent of the President.
According to the document, direct participation will take place in two cases: during the implementation of pilot and other projects necessary for state interests and strategic importance; and when it is not possible, to determine the winner of the electricity producer in the territory of renewable energy sources through an auction.
The head of state will also determine the procedure for choosing an electricity producer in the territory of renewable energy sources, as well as the specifics and conditions of contracts to be concluded.
In addition, the President will approve the Renewable Energy Action Plan.
The Action Plan includes national, local and other measures based on a study of the existing potential of renewable energy sources in nature, modern technologies, the development of electrical networks, forecasts of electricity consumption and education of electricity consumers, goals for the use of renewable energy sources.
The Cabinet of Ministers must coordinate with the President of the country the issue of approving the capacity limit for generated electricity, as well as the rules for applying the mechanism to support an active consumer.
According to the decree, the functions of the Tariff Council include the approval of wholesale prices for electricity produced from renewable energy sources, as well as tariffs for the transmission and distribution of this electricity.
In turn, “Azerenerji” was determined by the state body, which purchases electricity at a guaranteed tariff.
The decree also defines the powers of the Ministry of Energy.
Caspian Barrel