GREAT SYNCHRONIZATION

Issues of energy security continue to be the focus of attention on the agenda of international forums and in bilateral and multilateral relations between states. In this context, great importance is also attached to cooperation in the sphere of electricity. Efforts to coordinate or synchronize the work of the energy systems of various countries are clearly becoming more active. In this respect, Azerbaijan is no exception.

Pure exporter

Let's start by saying that the national energy agency - the Azarenerji joint-stock company - has focused attention on improving energy supplies to the regions of Azerbaijan. The construction of modular power stations in almost all regions of the country has made it possible to increase the country's power generating capacity to 5,700 MW (an increase of 1,000 MW) in a short period of time. In the short-term, within the framework of the state programme on the socio-economic development of the regions of the Azerbaijani Republic, it is planned to build new, and reconstruct old, power generating capacity. According to Etibar Pirverdiyev, President of the Azarenerji joint-stock company, the construction of a new power station, with a capacity of 104 MW, has been completed in Quba. "Electromechanical assembly work is under way at the station, and once it is completed (this year - author), the station will be put into operation," Pirverdiyev said.

The construction of the Canub power station, with a capacity of 780 MW, also continues. It is planned to build the Fuzuli hydroelectric power station in Sirvan, with a capacity of 25 MW.

Also this year, a new gas installation, Buxar Qaz with a capacity of 525 MW, will be put into operation in Sumqayit. Construction is already complete, and fixing and installation work is under way right now.

This is not the full list of projects for the construction and reconstruction of energy facilities, which will make it possible to increase power generation to 10,000 MW in the future.

At the same time, owing to the energy efficiency policy and the installation of electricity supply meters for all customers, including meters with prepayment cards - smart meters - the energy facilities of Azerbaijan are no longer working at full stretch. For example, in 2008 Azerbaijan generated 20,175, 800,000 kW/h of power, which was 2 per cent more than in 2007. From January-May this year, power generation totalled slightly more than 8.8 billion kW/h.

Thus, quite logically, in recent years Azerbaijan has changed from being an importer of power into an exporter. In May alone, the country exported 58.1 million kW/h of power, worth 2,164,100 dollars. In total, since the beginning of the year, the country has exported 190.7 million kW/h of power, earning 6,716,700 dollars. This is 3.02 times more (by physical volume) than power imported, which totalled 63.1 million kW/h (2,392,600 dollars). For comparison, 14 million kW/h of power (465,900 dollars) were exported in April, 45.6 million kW/h (423,700 dollars) in March, 45.6 million kW/h (1,666,100 dollars) in February and 61.1 million kW/h (1,996,900 dollars) in January. The average export price of power in the last five months was 0.0352 dollars, while the import price was 0.0379 dollars.

We should observe that, in 2008, Azerbaijan exported 808.8 million kW/h of power, worth 27,357,000 dollars, and last year 3.03 times more power was exported than was imported - 266.5 million kW/h (worth 10,520,700,000 dollars). The average export price of one kW/h of power was 0.0338 dollars and for imports - 0.0395 dollars. In 2007, 443.3 million kW/h (9,666,600 dollars) were exported and 773.7 million kW/h (23,409,000 dollars) imported, i.e. imports were double the amount exported. The average export price of one kW/h of power was 0.0218 dollars and the import price - 0.0303 dollars.

Certainly, the country's high power generating capacity and the increasing volume of power exported, has considerably increased Azerbaijan's chances of cooperating with its neighbours. In addition, it is worth mentioning the construction of new high voltage power lines between Azerbaijan, Russia and Iran, which creates favourable conditions for the formation of a synchronous Caspian energy system.

Today, Azerbaijan's main partner in the power sector is Russia. Our country's energy system works in parallel with Russia's. If necessary, it also works in parallel with Georgia's. Power is also exchanged in the "island" mode with Iran and Turkmenistan.

From Azerbaijan… to Turkey

However, the potential for cooperation in this sphere has not been exhausted, as proved by the 35th session of the CIS electrical energy council in Baku with representatives of Belarus, Kazakhstan, Kyrgyz-stan, Moldova, Russia, Turkme-nistan, Uzbekistan and Ukraine in attendance. The session was also attended by representatives of Iran as guests.

Although the agenda was quite interesting, the main emphasis was placed on synchronizing energy systems. It was stressed that Iran, whose energy system works in a regime synchronous with Armenia and Turkmenistan, has an interest in the same kind of cooperation with Azerbaijan and Tajikistan. Certain work is being carried out in this direction and there are results. Iran's desire to synchronize its energy system with surrounding CIS countries was also supported by the electrical energy council. This means that the aim for the near future is "greater synchronization". Thus it will be possible to transit electricity through Azerbaijani territory to Iran and Russia and vice-versa, especially as the facilities are in place - the energy systems of Azerbaijan and Russia are already working in synchronous mode and, at certain periods, parallel work is carried out with the energy system of Iran.

The projects to be implemented under the Azerbaijani-Iranian agreement to coordinate the working of energy systems and construct new lines and substations are nearing completion. The agreement, which was signed during the Iranian president's visit to Azerbaijan in 2004, provides for the construction of a 350 km power line and five substations.

The construction of the 330 kW Xacmaz substation to exchange energy between Azerbaijan and Russia is also nearing completion. Thus, the single energy line existing between the two countries at the moment will be supplemented by another one.

Moreover, according to Azerbaijani Minister of Industry and Energy Natiq Aliyev, during Georgian President Mikheil Saakashvili's visit to Baku, the issue of Azerbaijani and Georgian power exports to Turkey, specifically the need to reconstruct the 500 kW power line between Azerbaijan and Georgia, was also discussed. The minister pointed out that Azerbaijan can export up to 1,000 MW of power per year.

"This is quite realistic and suits Azerbaijan, which has sufficient energy capacity. Nor is it ruled out that energy efficient technology will be used in the future, which will increase our export potential," the minister said.

Natiq Aliyev said that the geography of export may expand considerably at the expense of countries in the Black Sea region, i.e. Azerbaijan will become a major exporter of power in the near future.

Of course, the export of power to Turkey was also discussed at the session of the CIS electrical energy council. According to Pirverdiyev, Azerbaijan, Georgia and Turkey are currently preparing a feasibility study for a project to create an electrical energy corridor between Azerbaijan, Georgia and Turkey, which will allow Azerbaijan to begin exporting electricity.

Meanwhile, plans for "global synchronization" are not limited to the CIS and Turkey. One of the issues being actively discussed by experts is synchronization with the energy systems of European countries. What will this bring to Commonwealth countries? First and foremost, it must be noted that the stability of frequency in the European energy system is much higher than in the CIS. According to European standards, the permissible level of deviation in frequency is 0.05 per cent. In the CIS energy system, this figure is 0.2 per cent. Thus, synchronization with Europe's energy system will inevitably result in the CIS energy system being brought into line with modern standards.

The synchronization of energy systems will also serve to increase the influx of investment in the developing economies of CIS countries. Any investor who puts money into energy-intensive production has an interest in the energy system of the country where he sets up his business being in line with the standards he is accustomed to.