Azerbaijan's energy efficiency measures could save up to $1B in subsidies

Attracting investments in energy efficiency measures is crucial, Azerbaijan's Deputy Energy Minister Orkhan Zeynalov highlighted during the event titled “Presentation of the Energy Efficiency Policy Roadmap in Azerbaijan,” held as a part of COP29, Report informs.

Zeynalov noted that in March 2024, President of Azerbaijan Ilham Aliyev approved the creation of the Energy Efficiency Fund, which will support energy efficiency measures and the use of renewable energy sources.

The deputy minister added that Azerbaijan collaborates with international organizations such as the International Energy Agency (IEA), the World Bank, and the European Union in energy efficiency. He stated that with the support of the World Bank, a national program for building renovation has been developed within the framework of the EU-Azerbaijan Rapid Technical Assistance Fund. Additionally, the EU4Energy program has provided support in drafting the energy efficiency law Zeynalov pointed out.

Revealing the key indicators of the roadmap, Zeynalov explained that energy efficiency measures in Azerbaijan could compensate for 25% of the country's energy needs. The deputy minister also emphasized that savings of $500 million to $1 billion in energy subsidies, a 3.5%-4.2% reduction in natural gas consumption, and a decrease of 4-10 million tons of carbon emissions are possible.

“According to research by the University of Glasgow, these measures are expected to create over 25,000 new jobs in Azerbaijan.”

He stressed that the roadmap covers the period up to 2040 and provides recommendations for implementing the energy efficiency strategy, along with an analysis of energy consumption.

"We plan to continue cooperating with the parties participating in the event in the future," Zeynalov highlighted.