Azerbaijan energy report

• The first NDC set a commitment to reduce GHG emissions by 35% in 2030 compared to 1990.
• The installed capacity of wind and solar in 2020 was 14 times lower than planned.
• 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.
• Almost all the electricity is generated from gas (93% in 2019).
• The country has substantial renewable potential, including hydropower.
• Gasoline and diesel prices are low (around 1/4 and 1/3 respectively compared to the EU average and Turkey in 2019).
• Per capita consumption is rather low and equals about half of the CIS region average.
• Total energy consumption, of which two thirds is gas, increased by 9% in 2019.
• The hydrocarbon sector is key to Azerbaijan's prosperity. It accounts for more than 90% of the country's total exports.

• Institutions & Energy Policy

  The Ministry of Industry and Energy is the central executive authority responsible for implementing energy policy.

  Since 2005, the "Tariff Council" has regulated the prices of commodities and services under a monopoly situation, including energy prices.

• Energy Companies

  Electricity:

  Azerenerji is Azerbaijan's public vertically integrated electricity company. It was transformed into a public holding company in 1996, and should be privatised once it has been able to produce sufficient profit to reimburse its debts.

• Energy Supply

  Resources:

  Azerbaijan has important hydrocarbon reserves: 949 Mt for oil and 1 917 bcm for gas (at the end of 2019). Hydroelectric resources are relatively abundant (43 TWh) and only a small proportion is exploited. The wind and solar energy potentials are estimated at about 15 GW and 11 GW, respectively.

• Energy Prices

  Oil:

  The sale of oil products is organised by the State Committee for Fuels, which buys products from the refineries 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.

• Energy Consumption

  Per capita consumption is around 1.6 toe in 2019, including 2 150 kWh of electricity.

  Total energy consumption increased at the rapid pace of 4%/year between 2010 and 2016; it remained stable throughout 2016-2018 (14 Mtoe) and increased by 9% in 2019 (16 Mtoe).

• 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.

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the Azerbaijan energy market report graphs:

• GRAPH 1: CO₂-energy Emissions (MtCO₂)
• GRAPH 2: Installed electric capacity by source (2019, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2019, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices for industry and households (US$c/kWh)
• GRAPH 7: Consumption trends by energy source (Mtoe)
• GRAPH 8: Total consumption market share by energy (2019, %)
• GRAPH 9: Final consumption market share by sector (2019, %)

In the Azerbaijan energy market report you will find the following tables:

• 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.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator.