BAKU, Azerbaijan, July 10. The
German-Azerbaijani Chamber of Commerce is working to attract German
companies in the field of renewable energy sources to Azerbaijan,
Executive Director of the German-Azerbaijani Chamber of Commerce
(AHK Azerbaijan) Tobias Baumann told Trend in an exclusive interview.
According to him, a delegation on renewable energy
sources visited Azerbaijan in 2022.
“We have a program with the Ministry of Economy and
Climate Action, and it supports business delegations on promising
topics, such as the development of renewable energy sources in
Azerbaijan. We know that Azerbaijan has a high potential in the
field of renewable energy. We see a lot of interest in the German
business community in this sector. Moreover, our Chamber of
Commerce organized a Forum on Economic Sustainability and held
meetings in the B2B format,” he said.
“Our companies are studying the Azerbaijani market,
its conditions and legal environment. We have 2-3 projects that we
are currently working on. The German side is negotiating with the
Azerbaijani government to participate in renewable energy auctions.
There are some aspects that need to be clarified, for example, the
price. Azerbaijan has really low consumer electricity prices, which
is not very attractive for large German investors. I believe that
cooperation initiatives can come from medium-sized companies. There
are also other possibilities that are being discussed today between
German companies and the Azerbaijani side. If the auction takes
place, I think there will be opportunities that will satisfy the
interests of German bidders,” he added.
Moreover, according to Baumann, Germany expects to
increase gas supplies from Azerbaijan, and cooperation between the
State Oil Company of Azerbaijan (SOCAR) and Uniper has huge
prospects in this matter.
“Uniper is one of the largest gas suppliers to our
country, and cooperation with SOCAR is very valuable in terms of
gas transportation from Azerbaijan via the Southern Gas Corridor to
Germany. We should consider the need to increase gas supplies from
Azerbaijan to Germany, as this is what we will need in the future.
The document signed between Azerbaijan and the European Commission
provides for doubling gas supplies from the Caspian region to
Europe by 2027, and I think Germany will receive a good share of
these supplies provided by Uniper,” Baumann said.
Baumann said that German companies are ready to
support Azerbaijan in the production and export of green
hydrogen.
“Thanks to long-term partnership and technologies,
Germany can share its experience and is ready to become a consumer
of green hydrogen from Azerbaijan. Everything related to
technologies, productivity solutions – German companies have
extensive experience in these areas, and accordingly we are
considering expanding cooperation here. Our companies also
specialize in the fields of agriculture, food production, and the
development of eco-friendly solutions. At the moment we have
projects with five farmers. Our technologies are expected to be
delivered to them,” Baumann added.
Further speaking, Baumann also announced the launch
dates of an energy gas turbine plant for the Azerkimya production
association of the State Oil Company of Azerbaijan (SOCAR).
“It is expected that it will be put into operation by
the end of August–beginning of September. Currently, this
installation is being operated in test mode. The project will open
up new directions for the development of similar projects in
Azerbaijan for German manufacturers,” he said.
He also touched upon the development of economic
relations and pointed out that Germany is interested in expanding
cooperation with Azerbaijan in the sectors of renewable energy,
mining and infrastructure.
“We see Azerbaijan as one of the main partners in the
field of traditional energy production. I believe that Azerbaijan
can play a big role in the world market in the field of renewable
energy production, as well as hydrogen. The potential for the
development of wind and solar energy in Azerbaijan will allow the
country to become an exporter of green energy. At the same time,
Azerbaijan could also export hydrogen or hydrogen electricity,” he
said.
“Another area of cooperation could be the mining
sector. This area is one of the future sectors of German interests.
German manufacturers of equipment, technologies and techniques have
extensive experience in the production of goods for this sector. In
addition, we have considerable experience and qualified equipment
that can also be used in the mining sector of Azerbaijan. It is
also advisable to develop our cooperation in the field of
infrastructure and water supply,” he added.
Meanwhile, Baumann noted that Germany plans to
increase exports to Azerbaijan to more than $500 million by the end
of 2023.
“The positive balance of foreign trade turnover
between Azerbaijan and Germany in 2022 amounted to over $1.2
billion. Germany exported $472 million worth of goods to
Azerbaijan, while imported $1.7 billion worth of goods. The largest
volume of German imports from Azerbaijan fell on the products of
the oil and gas sector,” he said.
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