AZERBAIJAN: Law No. 459-IG of 1998 on Electric Power Industry (2021 Ed.)

Meta Data
Title in national language: 
Elektroenergetika haqqında Azərbaycan Respublikasının Qanunu / Закон Азербайджанской Республики "Об электроэнергетике"
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1998
Effective Start Year: 
2021
Scope: 
National
Document Type: 
Law
Economic Sector: 
Power
Energy Types: 
Power
Issued by: 
Office of the President of the Republic of Azerbaijan
Source: 
Policy Database for CIS Countries (RU)
Policy Database for the Countries of CIS (EN)
E-Qanun (AZ)
File: 
Law No. 459-IG of 1998 on Electric Power Industry (2021 Ed.)(RU)
Law No. 459-IG of 1998 on Electric Power Industry (2021 Ed.)(AZ)
Overall Summary: 
The electricity policy of Azerbaijan is implemented through the Law on Electric Power Industry of 1998 which provides for generation and distribution of electric and thermal power energy, tariff setting, regulation of power markets, export and import of electricity, safety of power generation, transportation, distribution and consumption, standards and norms for the operation of electricity and thermal power plants. The Power Act gives the relevant regulatory body an explicit regualtory authority over energy related activities. The policy promotes a balanced integration of economic and environmental dimensions of sustainable development, focuses on the sector-specific strategy for the environment.
Efficiency
EE action plans: 
Art. 11 aims to support national energy conservation initiatives. The power supply organization shall take responsibility for provision of metering devices to individual consumers.
Environment
Energy environmental priorities: 
The primary objective of the policy is to promote sustainable production, transmission and utilization of energy along with improving the environmental performance of the power sector. Art. 14. The operation of power generating facilities shall be carried out in full conformity with environmental requirements. Art. 16 stipulates that technical characteristics of power receivers must meet the established norms and standards.
Land use change for energy production purposes: 
Art. 12. The policy seeks to strengthen national land administration capabilities. Among other priority issues, it stresses the need for facilitating sustainable land use and management. A balanced approach is proposed to ensure the optimal use of land resources through establishment of protected zones and areas. It is underscored that restrictions are not imposed on economic activities carried out in protected zones unless there’s contradiction with the national legislation on land management.
Energy-water nexus: 
Art. 13 addresses sustainability issues in the energy-water nexus. Under this article, utilization of water resources for hydropower generation is carried out in compliance with compulsory requirements established by the national regulatory authority.
Pricing
Energy pricing: 
The stated framework lays the ground for tariff regulation in electricity and thermal power sector. As provided by art. 8, a power distributing company and relevant regulatory body make an agreement for electricity and thermal power supply to consumers. Art. 10. The regulated tariff scheme is being introduced. Tariff types specified by the Power Act include: producer price for electricity and thermal power, wholesale price (tariff), retail price (tariff) and export-import price for electricity.