While shifting to alternative energy, SOCAR will compile the Road Map according to the government’s priorities and mandate, said the Annual Report on Sustainable Development” for 2020 issued by SOCAR.
According to the document, first of all, a responsible division or special organizational approach will be determined in the structure of SOCAR. Then a concept of the feasibility study, market conjuncture for enterprises operating in green technologies will be researched.
“Starting 2021, SOCAR will submit the draft Road Map to the government in order for the frame of target and policy across the country to be defined. Following the adoption of various laws in 2022, SOCAR can launch new technological projects from 2023,” the Report said.
It is noted that so as to meet the energy transition targets, some fundamental changes are made in the global energy industry: “Within the transition to the clean energy, which is less harmful to the environment and does not cause a climate change, a new type of fields, products and markets are developing. The factors that affect energy transition in the long-term prospectus may be divided into four groups: regulations, technology, macroeconomic factors, and consumer relations. The regulations envisage imposing additional tax and duties on the use of traditional energy and making concessions on the use of clean and green energy to reach the target set by the international organizations or state bodies, such as the European Green Deal. The main factors in the Technologies are reduction in expenses of existing technologies and expansion of clean and new technologies. Macroeconomic factors include issues on tendencies in the market, for instance, impacts of COVID-19 pandemic on the investments in the energy transition. In consumer relations, we can say that companies with less harm to the environment and higher social value prevail in the consumer segment. SOCAR is trying to conform its decisions with these factors.”