- Update
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- Format
- 3 files (PDF report, 2 Excel files)
- Pages
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56 (Report only)
- Delivery
- Immediate by e-mail
- GENERAL OVERVIEW
- ENERGY AND CLIMATE POLICY FRAMEWORK
- ENERGY COMPANIES
- ENERGY SUPPLY AND DEMAND
- ENERGY USE AND PRICE BY SECTOR
- ISSUES AND PROSPECTS
- STATISTICS
- ABBREVIATIONS
- GLOSSARY
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Overview
Azerbaijan’s energy sector remains heavily reliant on hydrocarbons, which dominate exports and economic output. Recent policy updates, including a revised energy law and climate commitments, aim to diversify supply through expanded renewables and efficiency measures, while maintaining gas exports to Europe. State-led entities oversee energy regulation, production, and infrastructure development.
Get more details on the table of contents and data files, as well as the list of graphs and tables by browsing the tabs below.
Highlights
- The hydrocarbon sector accounts for 90% of total exports of goods and around 1/3 of the GDP.
- Azerbaijan's NDC3.0 was submitted in 2025 and the first NEEAP is under development.
- State electricity company Azerenerji is the main player in the electricity sector.
- Two consortia operated by BP dominate the hydrocarbon sector (AIOC for oil and Shah Deniz for gas), in which SOCAR, the national public oil company, has stakes of around 20%.
- Gas production has doubled since 2018 and gas dominate primary energy consumption (66% in 2025) and power generation (86% in 2025).
- Gasoline and diesel prices increased in 2024 after three years of stability and are twice lower than in Türkiye.
- Residential electricity and gas prices are regulated and much lower than in Türkiye.
- Europe aims to import 20 bcm/year of gas from the Southern Gas Corridor in 2027.
- The Ministry of Energy has signed agreements with foreign companies to develop over 20 GW of renewables.
Energy & Climate Policy Framework
The Ministry of Energy is the central executive authority responsible for implementing energy policy.
Energy Companies
Oil:
SOCAR (State Oil Company of Azerbaijan), the national public oil company created in 1992, is active in the exploration and production of crude oil alongside many international companies. Since its creation, SOCAR has signed more than 25 agreements with foreign companies for the exploration and the exploitation of oil fields. SOCAR produced 7.1 Mt in 2025, i.e.
Energy Supply & Demand
Oil:
Oil and condensate production has been decreasing since 2010, by around 4%/year, from 51 Mt to 28 Mt in 2025 (-4% in 2025 alone). In the past, foreign investments greatly boosted the country's oil production, which more than tripled between 2004 and 2010, partly with the start of the Shah-Deniz field in 2006.
Energy Use and Price by Sector
Energy Prices in Transport:
The sale of oil products is organised by the State Committee for Fuels, which buys products from the refinery at a price that covers the cost of production plus a margin. It then sells the products at a price that includes excise duties, VAT and a tax that goes to the Road Development Fund.
Issues & Prospects
Three objectives are to be met in the future in the hydrocarbon sector: the development of oil and gas resources; the retrofitting of the petrochemical industry; and the development of the infrastructure to facilitate exports and to promote Azerbaijan as a crossroads for transits to Europe.
- Graph 1: Primary Consumption Trends by Energy Source
- Graph 2: Total Consumption Market Share by Energy (2025)
- Graph 3: Installed Electric Capacity by Source
- Graph 4: Installed Electric Capacity by Source (2025)
- Graph 5: Gross Power Production by Source & Consumption
- Graph 6: Power Generation by Source (2025)
- Graph 7: Crude Oil Production & Consumption
- Graph 8: Petroleum Products Production & Consumption
- Graph 9: Gas Production & Consumption
- Graph 10: Emissions of GHG and CO2 from Fuel Combustion
- Graph 11: Final Demand Trends by Energy Source
- Graph 12: Final Consumption by Sector
- Graph 13: Final Consumption Market Share by Sector (2024)
- Graph 14: Final Consumption in Industry by Energy Source
- Graph 15: Energy Prices in Industry (Taxes Included)
- Graph 16: Final Consumption in Transport by Energy Source
- Graph 17: Energy Prices in Transport (Taxes Included)
- Graph 18: Final Consumption in Residential, Services, Agriculture by Energy Source
- Graph 19: Energy Prices in Residential (Taxes Included)
- Graph 20: Upcoming New Capacity by Energy Source
- Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO2 emissions.
- Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
- Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
- Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
The Azerbaijan energy market data since 1990 and up to
is included in the Excel file accompanying the Azerbaijan country report.
It showcases the historical evolution, allowing users to easily work with the data.
Key Data included in the excelsheet:
- Economic indicators: Annual historical economic indicators, energy security, energy efficiency and CO2 emissions.
- Supply indicators: Annual historical reserves, capacity, production and external trade (imports(+) exports(-) balance).
- Demand indicators: Annual historical consumption per capita, consumption trends, total consumption, final consumption (per energy and per sector) and electricity consumption total and per sector.
- Energy Balance: total and per energy.
- Azerbaijan Energy Prices: In addition to the analysis provided on the report we also provided a data set which includes historical details on the Azerbaijan energy prices for the follow items: price of premium gasoline (taxes incl.), price of diesel (taxes incl.), price of electricity in industry (taxes incl.), price of electricity for households (taxes incl.), price of natural gas in industry (taxes incl.), prices of natural gas for households (taxes incl.), spot price of Brent and CO2 emissions (from fuel combustion).