11:38 - 19.08.2024

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August 19, Fineko/abc.az. Electrify Azerbaijan Company and China's BYD Company Limited (BYD) on Tuesday signed a framework agreement to modernize the passenger bus fleet in Azerbaijan.

This agreement covers the purchase of electric buses, their servicing, and the establishment and localization of electric bus production in Azerbaijan, Azertag reported. The final contract is expected to be signed in September this year.

BYD plans to invest $60 million in Azerbaijan, creating new production areas for light-duty electric trucks, electric vehicles for municipal services, and electric passenger cars starting in 2026, with battery production for energy storage beginning in 2028. By 2025, BYD will also begin local production of spare parts in Azerbaijan, with localization projected to cover 40 percent of the total bus cost by 2030.

BYD became the world leader in 2023 by selling a record 3 million new energy vehicles. It is renowned for its innovations in automotive, electronics, electric batteries, renewable energy, and rail transport.

Initially, BYD will invest $34 million in the production of electric buses at a new plant in Sumgait Chemical Industrial Park, aiming for an annual production volume of 500 units to meet domestic demand and export opportunities. Once the facility is operational, Azerbaijan's demand for electric buses will be met through domestic production.

Meanwhile, “BakuBus” will purchase 160 electric buses and 100 charging stations from BYD, with plans to have these buses in service in Baku by October 31, 2024.

The first BYD electric bus was introduced in Baku in April 2023. Later that year, in December, an electric passenger shuttle from the Chinese Yutong brand was added to the bus fleet as part of a pilot mobility program.

Between 2016 and 2023, over 61% of Baku's passenger bus fleet was upgraded with 1,044 modern medium and large-size shuttles, with 76% of these buses powered by LNG engines. The entire fleet is expected to be composed of electric buses by 2028.

The cooperation agreement with BYD, signed ahead of the United Nations Framework Convention on Climate Change Conference of the Parties (COP 29) in Azerbaijan in November, underscores Baku’s commitment to global climate change efforts.

Azerbaijan confirmed the commitments under the 2015 Paris Agreement to reduce the emission of greenhouse gases by 35 percent by 2030 and bring it to 40 percent by 2050.

Baku signed the 2015 Paris Agreement, a legally binding treaty on climate change, in April 2016 and has since been actively working to deliver on the issues prioritized by the government.

The Paris Agreement sets long-term goals to guide all nations to reduce global greenhouse gas emissions substantially and hold global temperature increase to well below 2°C above pre-industrial levels. It adds that nations must pursue efforts to limit global temperature increase to 1.5°C above pre-industrial levels and recognizes that this would significantly reduce the risks and impacts of climate change.

It also calls on the signatories to periodically assess the collective progress towards achieving the purpose of this agreement and its long-term goals, as well as provide financing to developing countries to mitigate climate change, strengthen resilience and enhance abilities to adapt to climate impacts.

The transition from traditional sources to alternative energy is among the priorities of the Azerbaijani government. Renewables are expected to make up 30 percent of Azerbaijan’s electricity generation by 2030. Estimates put the renewable energy potential of Azerbaijan at 37,000 MW, 10,000 of which was unveiled after the liberation of the country’s territories from the Armenian occupation in 2020.

The potential of wind power stands at 59.2 percent of the overall renewable energy potential of Azerbaijan. The solar power comes in at number two with a total of 8,000 MW potential. Biomass, geothermal, and hydropower (excluding large hydropower stations) are also seen as promising renewables at 900 MW, 800 MW, and 650 MW, respectively.

The Azerbaijani government also plans to transform the liberated Karabakh (Garabagh) and East Zangazur regions fully into a “Net-Zero Emission” Zone as a priority within the ongoing reconstruction and development projects. The green energy potential of the liberated territories of Azerbaijan includes almost all types of renewable energy sources, including hydro, solar, wind, and geothermal.

The Caspian Sea sector of Azerbaijan has also 157 GW of renewable energy potential.