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Milli Mejlis, the Parliament of the Republic of Azerbaijan, adopted the Draft EE Law in the first reading

On 22 June 2021, at the Milli Mejlis, the Parliament of the Republic of Azerbaijan, discussed the Draft Law 'On the Rational Use of Energy Resources and Energy Efficiency' that was developed with the technical assistance of the Energy Charter Secretariat within the EU4Energy project.

The Draft Law defines the state policy's legal, organisational and economic foundations in the energy efficiency field and regulates efficient production, storage, transmission, distribution, sale and consumption of energy. After the thorough discussions, the draft Law was put to the vote and adopted in the first reading.

Among other provisions, the new EE Law stipulates the development of the first National Energy Efficiency Action Plan (NEEAP) that has also been developed with the assistance of the Energy Charter Secretariat. A broader analysis conducted by the Government of Azerbaijan in cooperation with the EU-Funded EU4Energy project and within the development of the In-Depth Review of the Energy Efficiency Policy also identifies that gradual increase of energy efficiency in all sectors of the economy during 2021-2025 can bring the following cumulative benefits for Azerbaijan:

  • Savings of natural gas: 3.5-4.2 bcm;
  • Increased export revenue: $666-787 mln;
  • CO2 emissions reduction: 4-10  MtCO2;
  • Reduction of budget subsidies: $491-981 mln;
  • New investments: $2,460-3,389 mln;
  • Creation of new jobs: 118-123 thousand.

This technical assistance activity was part of the EU4Energy, an EU-supported initiative providing technical assistance to countries of the eastern partnership that seek to enhance their energy sectors with best practices of the European Union. In addition to Azerbaijan the Energy Charter Secretariat also collaborated with Armenia and Belarus.