Energy Efficiency Policy in Azerbaijan: A Roadmap

Energy Efficiency Roadmap for Azerbaijan

Based on the preceding analysis, the three tables of this summary roadmap present critical, important and supporting measures and milestones across a timeline to 2040. The tables are divided into cross-sector measures (grey) and sector-specific topics for buildings (green), appliances and equipment (blue), transport (orange) and industry (yellow). A colour code key appears below each table for reference. Energy efficiency is abbreviated as EE when applicable. 

Critical measures


Sector

2024 to 2030

2030 to 2040

Cross-sector
  • Adopt a national EE target
  • Complete legal framework with secondary legislation and technical norms
  • Implement State Programme and Strategy
  • Subsidy reforms
  • Develop EE data collection and tracking methodology
  • Meet and update national EE target
  • Complete subsidy reforms
  • Implement and expand data collection and tracking methodology
Buildings
  • Implement MEPS and codes
  • Set targets
  • Achieve at least 1.5% annual renovations of existing buildings
  • Ensure all new buildings are nearly or net zero
Appliances and equipment
  • Implement MEPS and labelling schemes
  • Ban incandescent lighting and imports of incandescent lamps
  • Formulate a heat pump target
  • Phase out/ban gas boilers in new buildings
  • Ensure that most appliances are equipped with digital controls
Transport
  • Collect data to enable enhanced vehicle efficiency standards and related fiscal policies
  • Introduce mandatory vehicle inspection regimes
  • Increase fuel taxes along with appropriate social compensation mechanisms
  • Phase out/ban internal combustion engines
  • Increase the EV share to 30%, with separate targets for public buses (rapid adoption), cars and trucks
Industry
  • Introduce MEPS for industrial motors and equipment
  • Set targets based on benchmarks and indicators

Important measures


Sector

2024 to 2030

2030 to 2040

Cross-sector
  • Deploy the Energy Efficiency Fund
  • Introduce incentives and capacity building across sectors
  • Create a dedicated EE agency
  • Create an independent energy regulator
  • Make a range of financial products for energy efficiency available
Buildings
  • Introduce annual renovation targets
  • Launch a national renovation programme
  • Develop a heating strategy
  • Deploy and achieve milestones identified in the heating strategy
  • Establish dedicated energy efficiency financing
Appliances and equipment
  • Collect technology-specific data
  • Develop a heat pump strategy
  • Introduce import controls
  • Introduce subsidies and promotions
  • Develop and launch time-of-use tariffs and a grid service strategy
  • Develop the domestic appliance market
Transport
  • Develop an EV strategy including additional incentives
  • Set targets for charging points
  • Deploy 100 000 to 200 000 EV charging points
Industry
  • Introduce a bulk replacement programme for drives and pumps
  • Offer training and accreditation for auditors, with free or subsidised energy audits
  • Develop a strategy for digitalisation, automation and artificial intelligence (AI)
  • Introduce carbon-based obligations and taxation

Supporting measures


Sector

2024 to 2030

2030 to 2040

Cross-sector
  • Conduct awareness-raising campaigns
  • Study barriers to efficiency in the utilities sector
  • Develop a new NEEAP
  • Develop a strategic investment programme
Buildings
  • Conduct awareness-raising campaigns
  • Develop a heating and cooling strategy
  • Offer financing for DH and residential retrofits to boost grid integration and heating sector decarbonisation
  • Launch commercial Super ESCOs
Appliances and equipment
  • Conduct market-promotion and awareness-raising campaigns
  • Develop a bulk procurement strategy
  • Launch pilot programmes for intelligent appliances
Transport
  • Develop an urban planning strategy
  • Establish domestic manufacturing of EVs and/or components
Industry
  • Develop an energy efficiency strategy for the manufacturing, chemicals and refining subsectors
  • Offer auditor training sessions
  • Ensure that at least 30% of industries are certified with EMSs
  • Launch AI pilot and demonstration projects