Azerbaijan, which is connected to the world with pipelines passing through Turkey carrying natural gas and oil, will integrate its electricity with the West this time. The Azerbaijani electricity grid will be connected to the Turkish grid via Georgia, and thus will be connected with the European network.
The economic and political relationship between Azerbaijan and Turkey, which is often described with the ‘One nation, two states’ slogan, are getting deeper. Minister of Energy and Natural Resources Fatih Dönmez was in Azerbaijan last week to attend the first Azerbaijan-Turkey Energy Forum. Answering the questions posed by a group of journalists there, Minister Dönmez said that the multidimensional relationship between the two countries could also be carried to third countries in terms of energy. “TPAO has serious investments in Azerbaijan,” he said.
Donmez underlined the global supply shortage, especially in supplies of natural gas in European countries. “We are holding some preliminary talks to increase our existing capacity in order to meet increasing demand. But increasing the capacity of the pipeline alone will not be enough, it is essential to work towards increasing the amount of production in the Caspian,” he said.
AGREEMENT ON ELECTRICITY TRADE
Electricity trade is also possible between the two countries, Donmez noted. “Currently, there is de facto electricity trade between Azerbaijan and Georgia. There is also electricity trade between Turkey and Georgia. Therefore, electrical energy can be transferred to Turkey through Georgia. Again, there is a de facto electrical connection between Nakhchivan and Turkey. We want to make it functional again,” the minister said, adding that an agreement had already been reached on this. As a result, the surplus of electricity generated in Nakhchivan can now be sold to Turkey and electricity can be transferred from Turkey when there is a shortage of supply in Azerbaijan.
The European National Transmission Systems Association (ENTSO -E), of which Turkey is a member, must approve compliance with technical criteria for Georgia and Azerbaijan to be integrated into the European interconnection, which also includes the UK, the minister explained. “These networks connecting Georgia and Azerbaijan have been transferring electricity for years already. How much flow can be added to the capacity of Georgia’s national transmission system should be negotiated between the three countries. This will also be on the table,” he said.
A NEW MINING PROJECT IS ON THE WAY
A memorandum of understanding regarding the transfer of Turkey ’s experience and knowledge in the mining sector to Azerbaijan was also signed during the Forum, Donmez said. He added that the cooperation protocol can transform the relationship into a fully-formed mining project in the future.
Donmez drew attention to the potential of Azerbaijan in reaching green energy targets, especially in the Karabakh region, which was liberated from Armenia. Private sector actors from each of these countries held meetings to evaluate investment and business opportunities in the green energy sector, he said.
Another topic discussed by the two countries in the field of electricity was the establishment of the electricity market, the minister stated. “There is a regulation in Turkey that is very compatible with and similar to European Union regulations. Studies regarding the transfer of knowledge and experience with regards to the regulation of the electricity market in Turkey continue,” he said.
5 new energy agreements between Azerbaijan and Turkey
►Cooperation Agreement for the Field of Mining Between the Republic of Turkey and the Republic of Azerbaijan.
►Agreement between the Ministry of Energy and Natural Resources of the Republic of Turkey and the Ministry of Energy of the Republic of Azerbaijan to cooperate in the field of Natural Gas.
►Cooperation agreement in the field of Earth Sciences and Mining between the Republic of Turkey Ministry of Energy and Natural Resources General Directorate of Mineral Research and Exploration, MTA International Madencilik Anonim Ɠirketi, the State Agency for Use of Mineral Resources of the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan, and AzerGold Public Limited Company.
►Cooperation Agreement in the field of Earth Sciences between the General Directorate of Mineral Research and Exploration and the National Geological Assessment Service.
►Cooperation protocol between Azerenerji ASC and the Turkish Electricity Transmission Corporation (TEIAS).