Azerbaijan open to cooperation with foreign investors to develop alternative energy sector

DNV GL, a global quality assurance and risk management company, founded in Norway, will work together with Azerbaijan for the establishment of a support system in the alternative energy sector.

The company won a tender organised by the Azerbaijani Ministry of Energy and was selected to assist the development of legislation in the field of alternative energy. The creation of a support system is of paramount importance in the development of a draft law on renewable energy sources.

“We will help create a legal framework for the renewable energy sector in Azerbaijan. The country has great potential in this area. However, to attract private investment and a large number of investors, both local and foreign, it is necessary to eliminate some obstacles,” Ilka Lewington, chief consultant at DVN GL, told reporters.

The cost of production of alternative energy is decreasing globally, and according to DVN GL, this is also true for Azerbaijan. Nevertheless, the improvement of the country’s alternative energy sector requires additional support.

DVN GL plans a number of measures, such as the introduction of incentives, in particular for tax and customs duties. Mrs Lewington noted however that the company’s major task will be to convince investors of the potential of the alternative energy sector in Azerbaijan.

Samir Valiyev, Azerbaijan’s deputy energy minister, recently stated the necessity of introducing a legal framework for the renewable energy sector, in order to fulfill the country’s international decarbonisation obligations.

Azerbaijan is currently holding negotiations with foreign investors from China, the UAE, the US and the EU to develop the alternative energy sector.