Azerbaijan: Renewable Energy Development (Biomass Cogeneration) Project

Sovereign Project | 47008-001 Status: Active

Summary

The Project objective is to promote renewable energy development in Azerbaijan through developing two pilot renewable energy projects (biomass) with a total installed capacity of 20 megawatt for electricity and heating supply in Oghuz and Beylagan regions.

The project impact will be increased renewable energy generation and supply in Azerbaijan. The expected project outcome will be two pilot demonstration biomass generation plants and heating supply systems in Oghuz and Beylagan regions. The project outputs consist of the following components: (i) construction of two biomass generation plants in Oghuz and Beylagan regions; (ii) construction of heating supply systems in Oghuz and Beylagan regions; and (iii) project implementation support comprising project management and supervision, safeguards compliance, and capacity building for the executing agency.

Latest Project Documents

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Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents

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Project Name Renewable Energy Development (Biomass Cogeneration) Project
Project Number 47008-001
Country Azerbaijan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8364-AZE: Renewable Energy Development (Biomass Cogeneration) Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Renewable energy generation - biomass and waste

Gender Equity and Mainstreaming No gender elements
Description

The Project objective is to promote renewable energy development in Azerbaijan through developing two pilot renewable energy projects (biomass) with a total installed capacity of 20 megawatt for electricity and heating supply in Oghuz and Beylagan regions.

The project impact will be increased renewable energy generation and supply in Azerbaijan. The expected project outcome will be two pilot demonstration biomass generation plants and heating supply systems in Oghuz and Beylagan regions. The project outputs consist of the following components: (i) construction of two biomass generation plants in Oghuz and Beylagan regions; (ii) construction of heating supply systems in Oghuz and Beylagan regions; and (iii) project implementation support comprising project management and supervision, safeguards compliance, and capacity building for the executing agency.

Project Rationale and Linkage to Country/Regional Strategy The Government of Azerbaijan (the Government) is committed to pursue a sustained long-term plan to improve power infrastructure and services to the country. The overall strategic objectives is to meet fully the electric power, gas and other energy demand of both the population and economy through the continued development of the fuel and energy sector. Azerbaijan's energy sector strategy is described in the State Program for Development of Fuel and Energy Sector in Azerbaijan (2005-2015), which set the following targets and goals: (i) efficient use of energy resources and increasing sector operational efficiency; (ii) establishing a sound regulatory environment to promote competition; (iii) improving the sector structure to attract more investments; (iv) promotion of renewable energy and sustainable development to ensure environmental safety; and (v) strengthening financial discipline in the sector and ensuring full payment for energy consumption.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Oghuz and Agjabedi regions

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders will be consulted during the project preparation. PPTA Consultant has been engaged to undertake comprehensive analysis and stakeholders consultations (in accordance with ADB's Social Safeguard Policy) to factor in all land acquisition, resettlement and environmental considerations into projects design.
During Project Implementation Consultation and information sharing with local communities will be made. Necessary social safeguards and environmental analyses will be undertaken and updated once the design work is initiated for sub-projects. Relevant documentation will be approved by ADB before contractor could be mobilized to undertake construction activities at project sites. Collaboration with stakeholders will be promoted to ensure compliance with national standards as well as ADB policies. A workshop SAARES officials will be held in early-November 2016 to broaden understanding on current RE technologies.

Business Opportunities

Consulting Services

A PPTA Consultant (firm) comprising of international and national experts was engaged and mobilized in October 2014. The PPTA Consultant, among other tasks, will undertake necessary due diligence for processing the loan for the project, and assist the pre-implementation works. The PPTA will also adequately address the following aspects relating to the ensuing loan project: (i) improved policy and regulation framework for promotion of biomass cogeneration investment projects; and (ii) detailed loan executing agency capacity assessment, and suggested remedial action plan to build the executing agency and the implementing agency capacity to minimize procurement and financial management risks.

An Inception Report was submitted in February 2015 identifying possible options for renewable energy sources in AZE. An Interim Report was submitted in May 2015 and finalized in September 2015.

SAARES confirmed in early 2016 its commitment in promoting renewable energy (RE) development with a comprehensive development plan in place therefore a more thorough assessment is yet to be done by the Consultant.

Responsible Staff

Responsible ADB Officer Tianhua Luo
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
State Agency on Alternative and Renewable Energy Sources
40 U.Hajibeyov str., Government House Bld.

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval 08 May 2013
Last Review Mission -
Last PDS Update 23 Sep 2016

TA 8364-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 May 2013 05 Aug 2014 05 Aug 2014 31 Dec 2014 31 Dec 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00 08 May 2013 292,834.69

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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