In-Depth Review of Energy Efficiency Policy of Azerbaijan

This first in-depth energy efficiency review of Azerbaijan was finalised in September 2012 by a team of experts from Albania and Sweden, officials from the European Union Delegation to Azerbaijan and the energy efficiency team of the Energy Charter Secretariat.
The review team observed that the development of renewable energy sources, improvement of demand-side energy efficiency and energy conservation are to a certain extend among the priorities in Azerbaijan’s energy policy. However, it was noted that energy efficiency still needed further attention in terms of strategy, action plans and legislation, and the few energy efficiency measures that currently existed were the ones that were financed by the European Union or through various donor projects.
The review team made recommendations to the government of Azerbaijan to reflect in its energy policies the potential contribution of energy efficiency to increasing fuel exports and supporting economic growth and the environment and to give high priority to energy efficiency and renewables. A detailed analysis of the economic potential of energy efficiency in all sectors of the economy needs to be developed and the barriers impeding the realisation of this potential need to be assessed.
Further, it was highly recommended that the government consider the introduction of market-oriented principles in the energy sector and an appropriate regulatory framework based on international experience, and to review the existing electricity, heat and gas tariffs in order to facilitate the implementation of energy efficiency measures. A number of specific recommendations were made for improving the existing legislation and introducing various energy efficiency policies in residential, public, industrial, district heating, services and transport sectors.
The recommendations made to the government of Azerbaijan were endorsed by the Energy Charter Conference at its Meeting in Warsaw in November 2012.