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Azerbaijan energy report

Azerbaijan energy report
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Format
3 files (PDF report, 2 Excel files)
Pages
32 (Report only)
Delivery
Immediate by e-mail
Table of Contents
  • GENERAL OVERVIEW
  • INSTITUTIONS AND ENERGY POLICY
  • ENERGY COMPANIES
  • ENERGY SUPPLY
  • ENERGY PRICES
  • ENERGY CONSUMPTION
  • ISSUES AND PROSPECTS
  • DATA TABLES
  • ABBREVIATIONS
  • GLOSSARY

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890 €

Overview

This analysis includes a comprehensive Azerbaijan energy market report and updated datasets. It is derived from the most recent key economic indicators, supply and demand factors, oil and gas pricing trends and major energy issues and developments surrounding the energy industry. The report provides a complete picture of the country situation, dynamics, current issues and future prospects. With market data and continuous follow-up of markets news, this report brings clear and concise insights with which to tackle national energy challenges and opportunities. Browse the tabs below for a detailed table of contents, the list of graphs and tables, and details on the data files.

Highlights

  • The hydrocarbon sector accounts for 90% of total exports of goods and around 1/3 of the GDP.
  • A new law on energy efficiency was published in 2023 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.
  • The share of gas in the power mix decreased from an average of 94% over 2021-2023 to 86% in 2024, because of an exceptionally high hydropower production.
  • Gasoline and diesel prices increased in 2024 after three years of stability and are twice lower than in Türkiye.
  • Electricity prices slightly increased for households and dipped for industry in 2024.
  • Per capita consumption is rather low and equals about half of the CIS region average.
  • Two thirds of total energy consumption is made up of gas.
  • 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.
30%
share of renewables in power capacity in 2030
86%
share of power generation from gas (2024)
6%
annual increase in gas production since 2010

  • Institutions & Energy Policy

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

    The "Tariff Council" regulates the prices of commodities and services under a monopoly situation, including energy prices.

    The Azerbaijan Energy Regulatory Agency (AERA), the national energy regulator, was set up in 2017 to oversee the electricity, gas and heat sectors.

  • Energy Companies

    Gas:

    SOCAR produced 7.7 bcm of gas in 2024 (-8% compared to 2023). SOCAR has signed many agreements with foreign companies for the exploration and exploitation of gas fields.

  • Energy Supply

    Gas:

    Gas production follows the commissioning of Shah Deniz phases and has more than doubled since 2018, reaching 39 bcm in 2024. Production, which halved between 1990 and 2003 (5 bcm), surged with the commissioning of the Shah Deniz 1 (SD-1) field in 2006 (17 bcm in 2008), ramped up to 20 bcm in 2018 (commissioning of Shah Deniz 2) and doubled until 2024.

  • Energy Prices

    Electricity:

    In 2024, the price of electricity for industry saw a slight decrease to around US$6.2c/kWh. For households, prices rose by 4% to US$4.9/kWh. Previously, they dropped by 20% in 2022 to US$4.7c/kWh and remained stable in 2023.

    Graph: ELECTRICITY PRICES FOR INDUSTRY AND HOUSEHOLDS (US$c/kWh)

  • Energy Consumption

    Per capita consumption was around 1.7 toe in 2024, including 2 340 kWh of electricity. This is twice lower than the CIS average.

    Total energy consumption decreased by 2% in 2024 to 17 Mtoe, mainly because of the higher hydropower production and the stability of the final consumption. It increased rapidly between 2010 and 2022 (+33%/year) and remained stable in 2023.

  • 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: CO2-energy Emissions (MtCO2)
  • GRAPH 2: Installed electric capacity by source (2024, %)
  • GRAPH 3: Gross power production by source (TWh)
  • GRAPH 4: Power generation by source (2024, %)
  • 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 (2024, %)
  • GRAPH 9: Final consumption market share by sector (2024, %)
  • 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.

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).