No easy gains left in energy sector, Azerbaijan deputy minister says

Azerbaijan is intensifying efforts to improve energy efficiency and strengthen its regulatory framework as opportunities for quick gains in the oil, gas and renewable energy sectors become increasingly limited, Deputy Energy Minister Elnur Soltanov said.

Speaking at the at the 31st Baku Energy Forum, Soltanov noted that developments across the energy sector have become more complex and require greater attention to detail, Caliber.Az reports per local media.

“There are no longer any easy results to achieve in the oil, gas, and renewable energy sectors,” he said.

The deputy minister highlighted ongoing work to establish a comprehensive legal framework for energy efficiency, stating that the process is nearing completion. He added that Azerbaijan is making significant progress in introducing a building certification system and expects to launch an electronic and automated certification process later this year.

“We are working to establish the legal framework for energy efficiency and have nearly completed it. We are seriously engaged in building certification and believe that this fall we will be able to launch this electronic, automated process,” Soltanov said.

According to the deputy minister, authorities have identified approximately 500 companies, institutions and buildings across Azerbaijan with energy consumption ranging from 250 to 1,000 oil equivalents. Under the new framework, these entities will be required to appoint qualified energy managers and undergo mandatory energy audits every three years.

“We have already designated around 100 energy managers in 100 institutions. This is a complex and detailed process, as they must pass exams and comply with requirements,” he said. “At the same time, these 500 entities must undergo audits every three years; this is mandatory.”

Soltanov also revealed that Azerbaijan has established an energy efficiency fund financed primarily through revenues generated from fossil fuels.

“We are trying to direct these resources into energy efficiency,” he said.

While acknowledging challenges stemming from domestic energy pricing and other factors, the deputy minister stressed the importance of promoting energy-saving practices and introducing the ESCO (Energy Service Company) culture to the country.

“Bringing ESCO culture to Azerbaijan, raising awareness, and engaging institutions in such activities is extremely important,” Soltanov said. “We are pleased that progress is being made, but it is indeed gradual and very slow.”

By Vafa Guliyeva