WB: Energy efficiency measures may earn Azerbaijan over $500M per year

Implementation of energy efficiency measures for public buildings in Azerbaijan could bring the country an income of $509 million per year through the export of additional natural gas volumes currently used for electricity generation, World Bank Senior Energy Specialist Yasemin Orucu said in her presentation on energy efficiency measures in Azerbaijan, Report informs.

"Azerbaijan's technical potential for electricity savings through the implementation of energy efficiency measures in public buildings is 50% of consumption. This will allow savings in energy supply costs of up to $154 million per year," said Orucu.

She noted that this involves improving the energy efficiency of 45,000 public buildings with a total area of 40 million square meters.

"We propose to start implementing energy efficiency measures for buildings in the residential sector and gradually expand their coverage to other sectors. According to our estimates, energy efficiency measures in public buildings can provide annual energy savings ranging from 0.9% to 3.1% of its total consumption. This, in turn, can ensure the annual export of an additional 644 million cubic meters of natural gas [currently used for electricity generation].

"And this means additional income from the export of this gas in the amount of up to $509 million," she said.

She noted that the implementation of these measures could begin with pilot projects.

"The government has a lot of work to do in this direction. We also recommend creating an Energy Efficiency Fund in the country, which is established at the legislative level, and it is also necessary to resolve the issues related to availability of energy-efficient equipment," she said.

Orucu also noted that according to World Bank estimates, the implementation of energy efficiency measures in Azerbaijan (such as building insulation and the introduction of efficient heating devices) could reduce the final energy demand for space heating and cooling in the residential sector by more than 60% in 2050 in a scenario to achieve net zero emissions by 2060.

She noted that a policy to improve energy efficiency should be implemented in all sectors of final electricity consumption to achieve a 5% reduction in final demand by 2030 and 15% by 2050.