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

Published in 2020


The In-depth Review of the Energy Efficiency Policy of the Republic of Azerbaijan was conducted in 2019 and published in 2020. This review report has been prepared by the Energy Charter Secretariat in cooperation with the Ministry of Energy of Azerbaijan. The peer review team was composed of officials from countries that are parties to the Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA), and the Energy Charter Secretariat: Mr Nikola Tsankov, Secretary General of the Sustainable Energy Development Agency (SEDA), Bulgaria (Chair of the Review team); Dr Roman Podolets, Head of Department of the Energy Sector Development and Projections, Institute for Economics and Forecasting, National Academy of Sciences of Ukraine; Mr Korkmaz Gül, Monitoring & Evaluation Group Coordinator, Department of Energy Efficiency and Environment, Ministry of Energy and Natural Resources of Turkey;  Ms Bilyana Chobanova, Project Manager of EU4Energy, Energy Charter Secretariat and Dr Oleksandr Antonenko, Energy Efficiency Coordinator, Energy Charter Secretariat.

The Republic of Azerbaijan is an energy-rich country and a major regional energy player exporting about 90% of produced oil and 50% of produced natural gas. With the development of Shah Deniz Stage 2 upstream project and the Southern Gas Corridor pipeline projects, Azerbaijan can potentially double its natural gas production and  deliver additional 6bcma of gas to Turkey and 10bcma to the EU natural gas market. Over the last ten years the country has also upgraded its electricity generation sector in a pursue to became a major electricity exporter to neighboring Turkey and Georgia. 

The state body responsible for Azerbaijan’s energy policy,  development of energy efficiency legal framework and implementation of energy efficiency measures is the Ministry of Energy. The ministry considers the improvement of efficiency in all economic areas as the key tool for increasing country’s energy export and meeting its commitments under the Paris Agreement to reduce GHG emissions by 35% in 2030 comparing with 1990. 

The in-depth review of the energy efficiency policy of Azerbaijan includes general and specific recommendations per sector, comprising power sector, industry, buildings, energy-using products and transport. The final report is available in English while the executive summary and recommendations are also available in Azerbaijani.