In-Depth Review of the Energy Efficiency Policy of the Republic of Azerbaijan

The energy efficiency policy of Azerbaijan started to be implemented in 1996 with the adoption of the law of the Republic of Azerbaijan ‘On the Use of Energy Resources’. The law defines the efficient use of energy resources as the use of energy resources with greater economic benefits, provided that the technogenic impact on the environment decreases with the development of machinery and technology.

This law has determined the main principles of state policy in the field of use of energy resources and the policies of state regulation and has guided the main activities of the relevant executive authority on the use of energy resources.

It should be noted that the principles of effective state regulation have ensured healthy competition in the market economy, transformation into an export-oriented economy, with efficient use of energy and high added value, and a comprehensive approach to the development of socio-economic spheres. This will be the basis for achieving the goal set out in the Development Concept ‘Azerbaijan 2020: Outlook for the Future’, approved pursuant to Order No. 2918, dated May 29, 2013, by the President of the Republic of Azerbaijan.

The energy efficiency policy of Azerbaijan is broadly defined by the Strategic Road Map on the development of utilities (electricity, heat, water and natural gas supply to the population) in the Republic of Azerbaijan, approved pursuant to a decree by the President of the Republic of Azerbaijan, dated December 6, 2016. The implementation of this road map, which will stimulate important changes in the utilities sector, will also be an important step in ensuring energy efficiency across Azerbaijan.

The document covers the strategic vision by 2020, the long-term vision for the period up to 2025 and the target vision for the period after 2025.

According to the regulations of the Republic of Azerbaijan on the Ministry of Energy, approved pursuant to a decree dated April 11, 2014, by the President of the Republic of Azerbaijan, and to Decree No. 512, dated November 17, 1996, by the President of the Republic of Azerbaijan on the application of a law of the Republic of Azerbaijan ‘On the Use of Energy Resources’, the state policy for energy efficiency is implemented by the Ministry of Energy of the Republic of Azerbaijan.

At the same time, the Ministry of Energy is the main implementer of measures on energy efficiency determined by the Strategic Road Map on the development of utilities (electricity, heat, water and natural gas supply to the population) in the Republic of Azerbaijan, approved pursuant to a decree of the President of the Republic of Azerbaijan, dated December 6, 2016.

Important measures are being taken to ensure energy efficiency in Azerbaijan. Actions are being carried out in parallel, both in the manufacturing and consumer sectors.

The measures in the manufacturing sector include the construction of new power plants meeting modern requirements, the modernisation of the power stations in use, reconstruction in the field of oil refining, reduction of losses in the energy system and adjusting the special consumption of power plants to modern standards.

At the same time, the improvement of the framework regulating the energy sector, the operations of the regulatory framework and the development of a management structure meeting modern standards have a positive impact on ensuring energy efficiency.

Household, transport and industrial sectors play a key role in energy carrier consumption. The measures taken to raise the awareness of consumers play an important role in the efficient use of energy in these sectors.

An important part of the measures taken in the consumer sector is the expansion of information dissemination in order to raise the awareness of the population and to attract consumers to energy efficiency measures. The use of devices and equipment that uses energy resources effectively, compliance with energy efficiency norms in construction and repair activities, expansion of the application of modern standards and compliance with the norms and rules of effectiveness constitute the main part of ensuring efficiency in consumption.