DOCSLIB.ORG

Azerbaijan 2021 Energy Policy Review Co-Funded by the European Union

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Azerbaijan 2021 Energy Policy Review Co-Funded by the European Union Co-funded by the European Union Azerbaijan 2021 Energy Policy Review Co-funded by the European Union Azerbaijan 2021 Energy Policy Review INTERNATIONAL ENERGY AGENCY The IEA examines IEA member IEA association the full spectrum countries: countries: of energy issues including oil, gas Australia Brazil and coal supply and Austria China demand, renewable Belgium India energy technologies, Canada Indonesia electricity markets, Czech Republic Morocco energy efficiency, Denmark Singapore access to energy, Estonia South Africa demand side Finland Thailand management and France much more. Through Germany its work, the IEA Greece advocates policies Hungary that will enhance Ireland the reliability, Italy affordability and Japan sustainability of Korea energy in its 30 Luxembourg member countries, Mexico 8 association Netherlands countries and New Zealand beyond. Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States The European Commission also participates in the work of the IEA Please note that this publication is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/t&c/ Source: IEA. All rights reserved. International Energy Agency Website: www.iea.org Foreword The International Energy Agency (IEA) has been conducting in-depth peer reviews of the energy policies of its member countries – and of other countries – since 1976, and it recently modernised these reviews to focus on some of the countries’ key energy transition and security challenges. FOREWORD Azerbaijan is one of the focus countries of the EU4Energy programme, which is carried out by the IEA and the European Union along with the Energy Community Secretariat and the Energy Charter Secretariat. The other EU4Energy focus countries are Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The programme is designed to support the goals and aspirations of the 11 focus countries to implement sustainable energy policies and foster co-operative energy sector development at the regional level. As part of this programme, the IEA conducts in-depth reviews of each focus country. Azerbaijan’s oil and gas production continues to support the country’s economy and energy supply and provide most of its exports and government revenue. However, many major oil and gas importing countries have recently pledged to reduce greenhouse gas emissions to net zero by mid-century, adding an extra element of uncertainty to the long- term economic outlook for countries like Azerbaijan that are heavily dependent on hydrocarbon exports. To help Azerbaijan respond to its energy sector challenges, this report proposes several ways it can make both its energy supply and consumption more efficient and diverse. The review recommends that Azerbaijan transition gradually from its current system – which is government-owned and -operated, vertically integrated, and subsidised – to competitive markets with significant private sector participation and cost-covering energy prices. The withdrawal of subsidies should, however, be accompanied by support measures for the country’s economically vulnerable citizens. Such a transition would attract new market entrants and new investments, including to develop Azerbaijan’s significant solar and wind energy resources. These measures would also help limit greenhouse gas emissions. This in-depth review aims to guide Azerbaijan in its energy sector reforms and help it achieve its energy policy goals of making the most of its abundant resources and providing affordable, secure and clean energy to its population. reserved. rights All 3 IEA. ENERGY INSIGHTS Foreword ..............................................................................................................................3 1. Executive summary .....................................................................................................11 Scaling down the long-term importance of oil and gas .....................................................11 A path to a more efficient, dynamic and sustainable energy system ................................12 Gas and electricity market reform .....................................................................................13 Securing larger electricity supplies ....................................................................................15 Using energy more efficiently ............................................................................................15 Energy research, development and innovation merit additional effort ..............................16 CONTENTS OF TABLE Further energy data improvements ...................................................................................17 Key recommendations .......................................................................................................17 2. General energy policy .................................................................................................19 Country overview ...............................................................................................................19 Energy supply and demand ...............................................................................................21 Energy production and domestic supply ...........................................................................22 Energy consumption ..........................................................................................................23 Energy sector governance ................................................................................................25 Key policies and reform efforts ..........................................................................................27 Energy statistics ................................................................................................................30 Assessment .......................................................................................................................31 Recommendations .............................................................................................................33 ENERGY SECURITY 3. Oil and natural gas ......................................................................................................35 Overview ............................................................................................................................35 Supply ................................................................................................................................36 Exploration and production ................................................................................................39 reserved. Trade .................................................................................................................................44 rights All 5 IEA. TABLE OF CONTENTS State oil and gas revenue ..................................................................................................51 Demand .............................................................................................................................52 Regulation ..........................................................................................................................54 Domestic operations and infrastructure ............................................................................57 Security of supply ..............................................................................................................61 Assessment .......................................................................................................................61 Recommendations .............................................................................................................65 4. Electricity......................................................................................................................69 Overview ............................................................................................................................69 Supply and demand ...........................................................................................................69 Electricity sector structure and reform ...............................................................................75 Networks ............................................................................................................................78 Prices and tariffs ................................................................................................................80 Security of supply ..............................................................................................................82 Assessment .......................................................................................................................84 Recommendations .............................................................................................................88 5. District heating ............................................................................................................91 Overview ............................................................................................................................91 Supply and demand ...........................................................................................................91 Regulation and prices ........................................................................................................92 Modernising DH infrastructure ...........................................................................................94
Load more

Recommended publications
  • The Project Financing of Cross-Border Pipelines a Presentation to the Energy Charter Workshop Brussels
    The Project Financing of Cross-Border Pipelines a presentation to the Energy Charter Workshop Brussels by Rubin Weston Chadbourne & Parke 17 October 2006 Regis House, 45 King William Street London EC4R 9AN Tel: +44 (0) 20 7337 8031 [email protected] © 2006, CHADBOURNE & PARKE All Rights Reserved Chadbourne & Parke: Legal Leaders in Energy Representing EBRD on the $180 million and $170 million financings of LUKoil’s and SOCAR’s respective investments in the Shah Deniz gas field and the South Caucasus Gas Pipeline Representing SOCAR on a $750 million loan facility in respect of the repayment of carry financing provided by TPAO and Exxon in respect of the ACG oil field and the financing of future cash calls Representing IFC on a $82 million loan to SC Petrotel-Lukoil SA to finance the modernisation of its refinery in Ploesti, Romania Represented Black Sea Trade and Development Bank and IFC on the financing of the Galata Gas Field, located offshore of Varna, Bulgaria in the Black Sea, the first limited recourse upstream project financing in the Black Sea Represented Transneft on a US $150 million syndicated receivable based financing facility arranged by Raiffeisen, Transneft’s first syndicated loan Represented IFC on the financing for a portion of LUKoil’s share of development of the Karachaganak field, the largest limited recourse petroleum project financing in Kazakhstan Represented Nations Energy on a US $150 million syndicated financing arranged by CSFB for the development of the Karazhanbas oil field in Kazakhstan and the
    [Show full text]
  • Writing National Histories: Coming to Terms with the Past
    No. 8 17 July 2009 Abkhazia South Ossetia caucasus Adjara analytical digest Nagorno- Karabakh www.jeffersoninst.org www.laender-analysen.de www.res.ethz.ch www.boell.ge Writing national Histories: Coming to terms WitH tHe Past ■ ANALYSIS Interpreting the Past – From Political Manipulation to Critical Analysis? 2 By Oliver Reisner, Tbilisi ■ ANALYSIS A Short Sketch of One Century of Azerbaijani Historical Writing 5 By Zaur Gasimov, Mainz ■ ANALYSIS Armenia’s Attitude Towards its Past: History and Politics 10 By Sergey Minasyan, Yerevan ■ OPINION Time Turned Back: On the Use of History in Georgia 13 By Giorgi Maisuradze, Tbilisi ■ CHRONICLE From 25 June to 15 July 2009 15 Jefferson Research Centre for East Center for Security HEinRich Böll STifTung DGO European Studies, Bremen Institute Studies, ETH Zurich SouTH CauCaSuS caucasus analytical caucasus analytical digest 08/09 digest analysis Interpreting the Past – From Political Manipulation to Critical Analysis? By Oliver Reisner, Tbilisi Abstract Georgian historians are not alone in taking a bifurcated view of Russia, with some seeking closer ties and oth- ers blaming it for Georgia’s problems. Over time, these views have influenced the writing of Georgian text- books. The first generation of textbooks published after the collapse of the USSR simply included superfi- cial updates to Soviet versions. The second generation critically redefined Russia’s role in Georgia’s past. The most recent, third, generation focuses on equipping young Georgian citizens with the tools of critical anal- ysis. However, unless there is more dialogue between the two camps of historians, politicians will continue to manipulate history for their narrow purposes.
    [Show full text]
  • Energy Sector Program Assessment
    CAPE Azerbaijan, Linked Document B ENERGY SECTOR PROGRAM ASSESSMENT A. Introduction 1. Purpose of the Sector Program Assessment 1. This sector assessment forms part of the Independent Evaluation Department (IED) country assistance program evaluation (CAPE) for Azerbaijan. The CAPE provides the Asian Development Bank (ADB) Board of Directors and Management with an independent assessment of ADB’s past operational performance in Azerbaijan. The CAPE findings and recommendations will be an input into the preparation and design of the new country partnership strategy (CPS) that will guide ADB operations in Azerbaijan from 2019 to 2023. Specifically, the CAPE (i) provides an independent assessment of the performance of ADB’s country programs and identifies factors affecting performance, and (ii) draws forward-looking lessons and makes recommendations for the next CPS. 2. Time Period 2. The 2012 country partnership strategy final review validation (CPSFRV) was the first independent country-level assessment of Azerbaijan.1 The assessment covered ADB support during 2000–2011 and described the country’s need for a diversified economy, increased competitiveness, and strengthened social services. 3. The current CAPE is the second independent evaluation of ADB’s country strategy in Azerbaijan. It assesses the outcome of ADB support over the 7 years from January 2011 to December 2017. The start of this period was chosen to overlap with the last year of the CPSFRV’s coverage to ensure that no operations would be missed. 3. Methodology 4. In line with evolving CPS strategic priorities during the evaluation period, the lending portfolio continued to focus on the energy sector, with the TA portfolio closely aligned with the lending portfolio.
    [Show full text]
  • The Struggle for Democratic Environmental Governance Around
    The struggle for democratic environmental governance around energy projects in post-communist countries: the role of civil society groups and multilateral development banks by Alda Kokallaj A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Political Science Carleton University Ottawa, Ontario © 2014 Alda Kokallaj Abstract This dissertation focuses on the struggle for democratic environmental governance around energy projects in post-communist countries. What do conflicts over environmental implications of these projects and inclusiveness reveal about the prospects for democratic environmental governance in this region? This work is centred on two case studies, the Baku-Tbilisi-Ceyhan oil pipeline and the Vlora Industrial and Energy Park. These are large energy projects supported by the governments of Azerbaijan, Georgia and Albania, and by powerful international players such as oil businesses, multilateral development banks (MDBs), the European Union and the United States. Analysis of these cases is based on interviews with representatives of these actors and civil society groups, narratives by investigative journalists, as well as the relevant academic literature. I argue that the environmental governance of energy projects in the post-communist context is conditioned by the interplay of actors with divergent visions about what constitutes progressive development. Those actors initiating energy projects are shown to generally have the upper hand in defining environmental governance outcomes which align with their material interests. However, the cases also reveal that the interaction between civil society and MDBs creates opportunities for society at large, and for non-government organizations who seek to represent them, to have a greater say in governance outcomes – even to the point of stopping some elements of proposed projects.
    [Show full text]
  • State Oil Company of the Azerbaijan Republic International Financial
    State Oil Company of the Azerbaijan Republic International Financial Reporting Standards Consolidated financial statements 31 December 2017 State Oil Company of the Azerbaijan Republic Consolidated financial statements Contents Independent auditor’s report Consolidated financial statements Consolidated statement of financial position ...................................................................................................... 1 Consolidated statement of profit or loss and other comprehensive income ...................................................... 3 Consolidated statement of changes in equity..................................................................................................... 4 Consolidated statement of cash flows ................................................................................................................ 5 Notes to the consolidated financial statements 1. The Group and its operations ................................................................................................................... 6 2. Basis of preparation and significant accounting policies.......................................................................... 6 3. Critical accounting estimates and judgments ......................................................................................... 23 4. Adoption of new or revised standards and interpretations and new accounting pronouncements........ 27 5. Segment Information .............................................................................................................................
    [Show full text]
  • Global Forest Resources Assessment (FRA) 2020 Azerbaijan
    Report Azerbaijan Rome, 2020 FRA 2020 report, Azerbaijan FAO has been monitoring the world's forests at 5 to 10 year intervals since 1946. The Global Forest Resources Assessments (FRA) are now produced every five years in an attempt to provide a consistent approach to describing the world's forests and how they are changing. The FRA is a country-driven process and the assessments are based on reports prepared by officially nominated National Correspondents. If a report is not available, the FRA Secretariat prepares a desk study using earlier reports, existing information and/or remote sensing based analysis. This document was generated automatically using the report made available as a contribution to the FAO Global Forest Resources Assessment 2020, and submitted to FAO as an official government document. The content and the views expressed in this report are the responsibility of the entity submitting the report to FAO. FAO cannot be held responsible for any use made of the information contained in this document. 2 FRA 2020 report, Azerbaijan TABLE OF CONTENTS Introduction 1. Forest extent, characteristics and changes 2. Forest growing stock, biomass and carbon 3. Forest designation and management 4. Forest ownership and management rights 5. Forest disturbances 6. Forest policy and legislation 7. Employment, education and NWFP 8. Sustainable Development Goal 15 3 FRA 2020 report, Azerbaijan Introduction Report preparation and contact persons The present report was prepared by the following person(s) Name Role Email Tables (old contact) Sadig Salmanov Collaborator [email protected] All Sadig Salmanov National correspondent [email protected] All Introductory text Forests are considered to be one of the most valuable natural resources of Azerbaijan that integrate soil, water, trees, bushes, vegetation, wildlife, and microorganisms which mutually affect each other from biological viewpoint in the course of development.
    [Show full text]
  • The Caucasus Globalization
    Volume 8 Issue 3-4 2014 1 THE CAUCASUS & GLOBALIZATION INSTITUTE OF STRATEGIC STUDIES OF THE CAUCASUS THE CAUCASUS & GLOBALIZATION Journal of Social, Political and Economic Studies Volume 8 Issue 3-4 2014 CA&CC Press® SWEDEN 2 Volume 8 Issue 3-4 2014 THE CAUCASUS & GLOBALIZATION FOUNDED AND PUBLISHED BY INSTITUTE OF STRATEGIC STUDIES OF THE CAUCASUS Registration number: M-770 Ministry of Justice of Azerbaijan Republic PUBLISHING HOUSE CA&CC Press® Sweden Registration number: 556699-5964 Registration number of the journal: 1218 Editorial Council Eldar Chairman of the Editorial Council (Baku) ISMAILOV Tel/fax: (994 – 12) 497 12 22 E-mail: [email protected] Kenan Executive Secretary (Baku) ALLAHVERDIEV Tel: (994 – 12) 561 70 54 E-mail: [email protected] Azer represents the journal in Russia (Moscow) SAFAROV Tel: (7 – 495) 937 77 27 E-mail: [email protected] Nodar represents the journal in Georgia (Tbilisi) KHADURI Tel: (995 – 32) 99 59 67 E-mail: [email protected] Ayca represents the journal in Turkey (Ankara) ERGUN Tel: (+90 – 312) 210 59 96 E-mail: [email protected] Editorial Board Nazim Editor-in-Chief (Azerbaijan) MUZAFFARLI Tel: (994 – 12) 598 27 53 (Ext. 25) (IMANOV) E-mail: [email protected] Vladimer Deputy Editor-in-Chief (Georgia) PAPAVA Tel: (995 – 32) 24 35 55 E-mail: [email protected] Akif Deputy Editor-in-Chief (Azerbaijan) ABDULLAEV Tel: (994 – 12) 561 70 54 E-mail: [email protected] Volume 8 IssueMembers 3-4 2014 of Editorial Board: 3 THE CAUCASUS & GLOBALIZATION Zaza D.Sc. (History), Professor, Corresponding member of the Georgian National Academy of ALEKSIDZE Sciences, head of the scientific department of the Korneli Kekelidze Institute of Manuscripts (Georgia) Mustafa AYDIN Rector of Kadir Has University (Turkey) Irina BABICH D.Sc.
    [Show full text]
  • World Bank Document
    Report No. 60180-AZ Public Disclosure Authorized Azerbaijan: Country Environmental Analysis Public Disclosure Authorized Priorities, Public Environmental Expenditures, and Institutional Readiness March 2011 Public Disclosure Authorized Sustainable Development Department Europe and Central Asia Region The World Bank Public Disclosure Authorized Azerbaijan: Country Environmental Analysis Priorities, Public Environmental Expenditures, and Institutional Readiness Contents Abbreviations and Acronyms ........................................................................................................... 6 Acknowledgments ............................................................................................................................ 8 Executive Summary ......................................................................................................................... 9 Introduction .................................................................................................................................... 14 A. The approach ....................................................................................................................... 15 B. Key environmental issues and priority setting .................................................................... 15 C. The State Environment Program ......................................................................................... 20 i. The process of formulation and implementation ............................................................. 20 ii. Selection of
    [Show full text]
  • Caspian Oil and Gas Complements Other IEA Studies of Major Supply Regions, Such As Middle East Oil and Gas and North African Oil and Gas
    3 FOREWORD The Caspian region contains some of the largest undeveloped oil and gas reserves in the world. The intense interest shown by the major international oil and gas companies testifies to its potential. Although the area is unlikely to become “another Middle East”, it could become a major oil supplier at the margin, much as the North Sea is today. As such it could help increase world energy security by diversifying global sources of supply. Development of the region’s resources still faces considerable obstacles. These include lack of export pipelines and the fact that most new pipeline proposals face routing difficulties due to security of supply considerations,transit complications and market uncertainties. There are also questions regarding ownership of resources, as well as incomplete and often contradictory investment regimes. This study is an independent review of the major issues facing oil and gas sector developments in the countries along the southern rim of the former Soviet Union that are endowed with significant petroleum resources: Azerbaijan, Kazakstan,Turkmenistan and Uzbekistan. Caspian Oil and Gas complements other IEA studies of major supply regions, such as Middle East Oil and Gas and North African Oil and Gas. It also expands on other IEA studies of the area, including Energy Policies of the Russian Federation and Energy Policies of Ukraine. The study was undertaken with the co-operation of the Energy Charter Secretariat, for which I would like to thank its Secretary General, Mr. Peter Schütterle. Robert Priddle Executive Director 5 ACKNOWLEDGEMENTS The IEA wishes to acknowledge the very helpful co-operation of the Energy Charter Secretariat, with special thanks to Marat Malataev, Temuri Japaridze, Khamidulah Shamsiev and Galina Romanova.
    [Show full text]
  • Filologiya Məsələləri, № 3, 2021
    Filologiya məsələləri, № 3, 2021 AZƏRBAYCAN MİLLİ ELMLƏR AKADEMİYASI M. FÜZULİ adına ƏLYAZMALAR İNSTİTUTU FİLOLOGİYA MƏSƏLƏLƏRİ № 3 Toplu Azərbaycan Respublikası Prezidenti yanında Ali Attestasiya Komissiyası tərəfindən rəsmi qeydiy- yata alınmışdır (Filologiya elmləri bölməsi, №13). Azərbaycan Respublikası Ədliyyə Nazirliyi Mətbu nəşrlərin reyestrinə daxil edilmişdir. Reyestr №3222. «Елм вя тящсил» Бакы – 2021 – 1 – Filologiya məsələləri, № 3, 2021 РЕДАКСИЙА ЩЕЙЯТИ: академик Иса Щябиббяйли, академик Теймур Кяримли, akademik Мющсцн Наьысойлу, akademik Низами Ъяфяров, академик Rafael Hüseynov, АМЕА-нын мцхbир цзвц, фilologiya elmləri doktoru, проф. Ябцлфяз Гулийев, фilologiya elmləri doktoru, проф. Fəxrəddin Veysəlli, фilologiya elmləri doktoru, проф. Гязянфяр Казымов, фilologiya elmləri doktoru, проф. Рцфят Рцстямов фilologiya elmləri doktoru, проф. Əsgər Rəsulov, фilologiya elmləri doktoru, проф. Надир Мяммядли, фilologiya elmləri doktoru, проф. Мясуд Мащ- мудов, фilologiya elmləri doktoru, проф. Ябцлфяз Ряъябли, фilologiya elmləri doktoru, проф. Ъялил Наьыйев, фilologiya elmləri doktoru, проф. İsmayıl Məmmədli, фilologiya elmləri doktoru, проф. Nizami Xudiyev, фilologiya elmləri doktoru, проф. Həbib Zərbəliyev, фilologiya elmləri doktoru, проф. İlham Tahirov, фilologiya elmləri doktoru, проф. Tofiq Hacıyev, фilologiya elmləri doktoru, проф. Sevil Meh- diyeva, фilologiya elmləri doktoru, проф. Buludxan Xəlilov, фilologiya elmləri doktoru, проф. Мцбариз Йусифов, фilologiya elmləri doktoru, проф. Гязянфяр Пашайев, фilologiya elmləri doktoru,
    [Show full text]
  • Genocide and Deportation of Azerbaijanis
    GENOCIDE AND DEPORTATION OF AZERBAIJANIS C O N T E N T S General information........................................................................................................................... 3 Resettlement of Armenians to Azerbaijani lands and its grave consequences ................................ 5 Resettlement of Armenians from Iran ........................................................................................ 5 Resettlement of Armenians from Turkey ................................................................................... 8 Massacre and deportation of Azerbaijanis at the beginning of the 20th century .......................... 10 The massacres of 1905-1906. ..................................................................................................... 10 General information ................................................................................................................... 10 Genocide of Moslem Turks through 1905-1906 in Karabagh ...................................................... 13 Genocide of 1918-1920 ............................................................................................................... 15 Genocide over Azerbaijani nation in March of 1918 ................................................................... 15 Massacres in Baku. March 1918................................................................................................. 20 Massacres in Erivan Province (1918-1920) ...............................................................................
    [Show full text]
  • The National Emblem
    Administrative Department of the President of the Republic of Azerbaijan P R E S I D E N T I A L L I B R A R Y NATIONAL EMBLEM Contents National Emblem ........................................................................................................................... 2 The emblems of provinces ............................................................................................................ 3 The emblems of Azerbaijani cities and governorates in period of tsarist Russia ................... 4 Caspian oblast .............................................................................................................................. 4 Baku Governorate. ....................................................................................................................... 5 Elisabethpol (Ganja) Governorate ............................................................................................... 6 Irevan (Erivan) Governorate ....................................................................................................... 7 The emblems of the cities .............................................................................................................. 8 Baku .............................................................................................................................................. 8 Ganja ............................................................................................................................................. 9 Shusha .......................................................................................................................................
    [Show full text]