Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2005
Effective Start Year: 
2005
Effective End Year: 
2015
Scope: 
National
Document Type: 
Programme
Economic Sector: 
Energy, Power
Energy Types: 
All, Coal, Oil, Power, Gas
Issued by: 
Office of the President of the Republic of Azerbaijan
Overall Summary: 
Advances in the fuel and energy sector - an essential integral element of Azerbaijan economy – have generated substantial economic gains over the past several decades. The State Program for Development of Fuel and Energy Sector in Azerbaijan (2005-2015) developed pursuant to the Presidential Executive Order № 635 dated 14 February 2005 lays the ground for sustainable and robust development of the industry. The policy sets targets for various sub-sectors within the industry and provides a set of specific measures aimed at achieving the established goals within the next decade. The overall goal of the State Program is to meet fully the demand for electricity, gas and other types of energy through continued development of the fuel and energy sector. --- An emphasis is placed on high-impact cooperation opportunities and synergies with partners.
Access
Energy access priorities: 
Efforts will be taken to expand and reconstruct the electric power and gas transmission lines, rural and urban distribution networks, to improve the accounting system, to reduce losses and prevent the inefficient use of energy – all that to meet the national demand for electric power and natural gas.
Efficiency
EE targets: 
Reduce the amount of fuel used to generate 1 kWh of electricity from 386 grams to 260 grams. The established target shall be achieved through introduction of new generating capacities and upgrading existing electricity generation units.
Energy Supply and Infrastructure
Infrastructure development priorities: 
The Program focuses on the four major large-scale oil and gas projects currently underway: 1) full-scale development of the deep levels of the Azeri, Chirag and Guneshly (ACG) field; 2) development of the Shakh-Deniz gas condensate field; 3) construction of the Baku-Tbilisi-Ceyhan (BTC) Main Export Pipeline; 4) construction of the Baku-Tbilisi-Erzerum (BTE) South Caucasus Pipeline. --- Sangachal terminal have been put in operation under the ACG initial oil project. --- The Baku-Tbilisi-Ceyhan Main Export Pipeline is developed as the primary route for transportation of the ACG oil. --- In 2005 – 2008, the following international projects on exploration of oil and gas were carried out: 1) Baku-Tbilisi-Ceyhan Main Export Pipeline was completed and put in operation; 2) Baku-Tbilisi-Erzerum South Caucasus Pipeline completed and put in operation; 3) “Central Azeri” platform completed and oil production commenced; 4) “Production Rate Growth Project” implemented at “Chirag-1” platform; 5) Gas pipeline completed and put in operation to deliver gas from the Sangachal terminal to the Sangachal Main Facility; 6) Construction of gas and oil pipelines from the “Azeri” field to the shore; 7) Construction of a compressor and water-pumping platform at the “Azeri” field; 8) Construction of 2 oil tanks and auxiliary facilities at the Sangachal terminal; 8) “Western Azeri” platform constructed and oil production commenced; 9) “Eastern Azeri” platform constructed and oil production commenced; 10) oil production commenced at the deep level of the “Guneshly” field under the “Phase-3” project; 11) Gas and condensate pipelines constructed and put in operation which will connect the “Shakh-Deniz” field with the Sangachal terminal; 12) TPG-500 platform constructed and put in operation at the “Shakh-Deniz” field; 13) Transportation of initial gas and condensate started from the “Shakh-Deniz” field to the Sangachal terminal. ---- Power and Heating Sectors. Azerbaijan DRES-1, Shamkir SES-1 (water power plant), Araz (Nakchivan), Terter water power plants were constructed and put in operation and Baku and Sumgayit thermal power plants were modernized in the 1970-80-ies of the 20th century. These efforts doubled Azerbaijan’s electric power generation capacity thus eliminated the country’s energy dependence on external sources. Nowadays existing power generation facilities require refurbishment and modernization. --- High-voltage 500 kV lines have been extended to 450 km; 330 kV lines to 1200 km; and 220- 230 kV lines to 1260 km in order to allow for effective transmission and distribution of the domestically generated power. In addition, over 50 km long low voltage transmission and distribution lines have been put in operation; all administrative districts of Azerbaijan have been equipped with two-way 35-110 kV electric lines and transformer substations. --- Existing generating capacities are expected to reach 6500- 7000 MWatts by 2015. To achieve the established goal, the policy envisages construction of new thermal and power plants, modernization of existing generating units and increasing the use of renewable energy (small water power plants, wind, solar power, thermal waters, etc.).
Regional integration priorities: 
Given that Azerbaijan’s energy market remains vulnerable to downturns in global markets, future developments in energy exports can be looked at from the two perspectives: export is expected to increase on the whole, greater diversification will be achieved with deepening economic integration in the region.
Trade
Energy trade priorities: 
Given that Azerbaijan’s energy market remains vulnerable to downturns in global markets, future developments in energy exports can be looked at from the two perspectives: export is expected to increase on the whole, greater diversification will be achieved with deepening economic integration in the region.
Governance
Energy management principles: 
The state energy policy considers the following priorities: establish targets for Azerbaijan’s fuel and energy sector ensuring coherence with international practices and standards, implement research and development activities to enhance the efficiency of the fuel and energy sector, support the deployment of advanced technologies for improving production, processing, transportation and storage of energy resources, enable a favorable environment for market competition, attract investments to the fuel and energy sector, and ensure environmental sustainability.
National policy structure: 
The overall goal of the State Program is to meet fully the electric power, gas and other energy demand of both the population and economy through the continued development of the fuel and energy sector.