Azerbaijan adopts law on energy efficiency with EU4Energy support

Azerbaijan adopts law on energy efficiency with EU4Energy support

June 29, 2021

On 22 June, the Milli Mejlis, the Parliament of the Republic of Azerbaijan, adopted at the first reading the law ‘On the Rational Use of Energy Resources and Energy Efficiency’. The draft was developed with the technical assistance of the Energy Charter Secretariat within the EU-funded EU4Energy project.

The new law defines the state policy’s legal, organisational and economic foundations in energy efficiency and regulates efficient production, storage, transmission, distribution, sale and consumption of energy.

Among other provisions, the new law stipulates the development of the first National Energy Efficiency Action Plan (NEEAP) that has also been developed with the assistance of the Energy Charter Secretariat.

A broader analysis conducted by the Government of Azerbaijan in cooperation with the EU4Energy project identifies that gradual increase of energy efficiency in all sectors of the economy during 2021-2025 can bring the following cumulative benefits for Azerbaijan:

  • Savings of natural gas: 3.5-4.2 bcm;
  • Increased export revenue: $666-787 mln;
  • CO2 emissions reduction: 4-10  MtCO2;
  • Reduction of budget subsidies: $491-$981 mln;
  • New investments: $2.5-$3.4 mln;
  • Creation of new jobs: 118,000-123,000.

EU4Energy is an EU-supported initiative providing technical assistance to the Eastern Partner countries that seek to enhance their energy sectors with best EU practices.

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