Azerbaijan energy report

• The first NDC set a commitment to reduce GHG emissions by 35% in 2030 compared to 1990.
• The wind and solar capacity in 2020 was much 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 (94% in 2020).
• The country has substantial renewable potential, including hydropower.
• Gasoline and diesel prices are low, compared to the EU average or Turkey.
• 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 country is expanding its gas export capacities and is starting to develop renewable projects.

• 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.

• 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

  Oil:

  Oil production has been decreasing regularly since 2010, by around 4%/year, from 51 Mt to 34.5 Mt in 2020 (-32%). Previously, 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 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 1.5 toe in 2020, including 2 170 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), increased by 9% in 2019 and dropped by 3% in 2020 to 15.5 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 (2020, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2020, %)
• 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 (2020, %)
• GRAPH 9: Final consumption market share by sector (2020, %)

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.