BAKU, Azerbaijan, February 22. The European
Commission will be working closely with the COP29 Presidency team
to make the Baku COP29 a success, EU Commissioner for Energy Kadri
Simson said in an exclusive interview with Trend on the occasion of
the upcoming Southern Gas Corridor Advisory Council’s meeting in
Baku March 1.
“We welcome that Azerbaijan joined at COP28 the Global Pledge to
triple renewable capacity and double energy efficiency gains
worldwide by 2030. This was an important milestone in the
implementation our energy partnership. We will be working closely
with the COP29 Presidency team to implement the Pledge and to make
the Baku COP29 a success,” she said.
Simson noted that at the second Green Energy Advisory Council
the focus will be on the development of the vast offshore wind and
solar energy capacities in Azerbaijan, as well as development of
physical interconnections and market integration at regional
level.
“The upcoming meetings in Baku will be an opportunity for
European officials and companies to engage further with partners on
the development of offshore wind energy capacity and to facilitate
investment by European businesses into the Azerbaijani market. In
this context, we are encouraging Azerbaijan’s authorities to
proceed as soon as possible with the implementation of an open and
transparent auctioning regime for renewable energy projects,” the
commissioner added.
Kadri Simson went on to add that the meeting of the Southern Gas
Corridor Advisory Council offers an opportunity to discuss the
capacity expansion of the pipeline, which represents for a crucial
route of gas supply diversification.
“We will also discuss the role of the Southern Gas Corridor in
supporting coal phase out and diversification efforts of the EU
neighboring countries. This discussion is key in addressing
regional and global energy security challenges. Crucially, along
with the SGC Advisory Council, a second Green Energy Advisory
Council will also be convened, following on from the successful
experience of 2023. It will address the promotion of renewable
energy generation, energy efficiency, and renewable hydrogen, which
are significant pillars of the EU-Azerbaijan energy partnership. To
move to practical arrangements, the representatives of the EU wind
sector will travel with me to Baku, to discuss in the margins of
the Green Energy Advisory Council with the Azeri side the scope for
investments into wind energy in Azerbaijan. Overall, the Green
Energy Advisory Council will also provide a great opportunity to
discuss the upcoming COP29,” she added.
Expansion of the Southern Gas Corridor
The commissioner noted that Azerbaijan has a significant role in
supporting Europe’s efforts to diversify away from Russian
fuels.
“Azerbaijani natural gas supplies to the EU market reached 11.8
billion cubic meters in 2023, up from 8.1 in 2021, and we are both
committed to increase bilateral trade to 20 billion cubic meters
per year by 2027. The Advisory Council meeting will be an
opportunity to discuss the necessary infrastructure upgrades along
the Southern Gas Corridor,” she said.
Simson pointed out that for midstream infrastructure upgrades,
the European Bank for Reconstruction and Development might have a
role to play when there will be a clear project on the table, and
in a context of decarbonization commitments in line with Paris
Agreement goals and plans to address methane leakage.
New contracts for gas supply
She noted that the European Commission aims to facilitate energy
trade with Azerbaijan, but it is not a party to such contracts.
“The conclusion of gas supply contracts is up to companies. On
our side, we continue to engage with our Azerbaijani counterparts
to foster cooperation and ensure we have a conducive business
environment for a stable energy relationship. We also encourage EU
companies to engage in gas supply agreements with Azerbaijan.
However, the final decision on the signature rests with the private
operators,” the commissioner explained.
Azerbaijan-EU green corridor
“We are following with great interest the initiative of laying
out a high-voltage direct current bidirectional interconnector
under the Black Sea between Georgia and Romania. A feasibility
study is ongoing,” she said.
Simson pointed out that this project is already included in
Ten-Year Network Development Plan of the European Network of
Transmission System Operators for electricity.
“It is also included as a flagship project under the EU Global
Gateway strategy. This is an important first project, and a broader
green energy corridor is envisaged, including possible trade in
hydrogen from renewable sources. We welcome that more countries
have signaled interest in joining this initiative and encourage
them to improve the business case for the green energy corridor
thus increasing the mutual gains of the initiative,” added the
commissioner.
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