Azerbaijan will support the transfer of excess electricity produced from renewable energy sources to the grid

The Cabinet of Ministers of Azerbaijan adopted a resolution approving the “Rules for the application of the active consumer support mechanism” and establishing a limit on the power of electricity produced by active consumers from renewable energy sources.

The goal is to apply an active consumer support mechanism to transfer surplus electricity produced from renewable energy sources.

These Rules apply to active consumers who produce electricity from renewable energy sources in order to fully or partially meet electricity consumption. The power limit of the construction site of the active consumer is determined based on the requirements stipulated by the technical specifications.

Taxation of active consumers, their exemption from taxation and the application of tax benefits to them are regulated in accordance with the Tax Code. Relations between an active consumer and an energy supply company, not covered by these Rules, are regulated by the “Rules for the Use of Electricity”, approved by Resolution of the Cabinet of Ministers of the Azerbaijan Republic No. 18 dated February 2, 2005.

An active consumer is a legal or natural person who, in addition to consuming electricity, produces electrical energy with a capacity of up to 150 kW (including 150 kW) from renewable energy sources.

In accordance with these rules, the stages of the active consumer support mechanism are:

- design, construction and installation of an active consumer power plant;

- connecting the construction site to the power supply network;

- transfer of generated electricity to the power grid in order to compensate for excess consumption;

- purchase of electricity from the power supply network at a retail tariff corresponding to the consumer group to which it belongs, if the consumption of the active consumer exceeds the production of electricity;

- conclusion of an electricity purchase and sale agreement between an active consumer and an energy supply company in connection with the transmission and receipt of electrical energy;

- payment of the cost of residual electricity arising in connection with compensation to the active consumer at the appropriate wholesale tariff for the current reporting period.