AZERBAIJAN: Law No. 784-IQ of 1999 on Electricity and Thermal Power Plants (2019 Ed.)

Meta Data
Title in national language: 
Elektrik və istilik stansiyaları haqqında Azərbaycan Respublikasının Qanunu / Закон Азербайджанской Республики "Об электрических и тепловых станциях"
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1999
Effective Start Year: 
2019
Scope: 
National
Document Type: 
Law
Economic Sector: 
Power
Energy Types: 
Power, Gas, Renewable, Bioenergy, Hydropower, Solar, Wind
Issued by: 
Office of the President of the Republic of Azerbaijan
Source: 
E-qanun (AZ)
Policy Database for CIS Countries (RU)
Policy Database of CIS Countries (EN)
File: 
Law No. 784-IQ of 1999 on Electricity and Thermal Power Plants (AZ)
Law No. 784-IQ of 1999 on Electricity and Thermal Power Plants (RU)
Overall Summary: 
The document sets forth principles for the regulation of electric / thermal power sector in the Republic of Azerbaijan. The policy proposes a comprehensive approach to the regulation of power industry, covers the areas of design, construction and operation of electricity / thermal power generation plants. Regulatory measures are focused on ensuring safety, efficiency and environmental sustainability of power generation, transmission and dispatch. --- Importantly, the Law aims to promote sufficient incentives on making renewable energy economically attractive and viable. Subsidization is the key for the creation of sustainable renewable energy sector in the republic. While addressing the issue of insufficient RES connection to the grid, the policy proposes steps to lower and remove existing barriers on the way to RES integration. As the country faces a range of interlinking energy and water challenges, the policy proposes an integrated approach to addressing the existing issues in the energy-water nexus.
Access
Energy access priorities: 
Art. 6 ‘Power distribution and dispatch’ stipulates that national power development priorities include ensuring reliable access to modern energy services. Stable, sufficient and robust infrastructure for power generation, transportation and dispatch will be developed, along with that ongoing efforts are foreseen to improve grid access.
Renewable Energy
RE priorities: 
Art. 3. The Law on Power and Thermal Power Plants sets regulatory framework for the development of small scale renewable power. To increase the uptake of renewable heating / electricity generation - thereby diversify Azerbaijan’s energy mix – regulatory efforts focus on support to solar, wind, hydro and biomass power generation. The policy gives considerable attention to the development of solar power stations, wind plants with generation capacity of 10-100 kWt, hydropower stations – generation capacity of 50-10 000 kWt, power plants using 80 per cent of biomass for electricity generation.
RE capital subsidy, grant, or rebate: 
Art. 3.2. To unleash the potential of renewable energy through increasing its economic attractiveness, RES subsidization schemes are introduced.
Mandatory connection: 
Art. 3.2. To support the integration of renewable sources of energy into the national energy system, the policy proposes regulatory measures that ensure mandatory connection of RES producers to the power grid.
Environment
Energy environmental priorities: 
Art. 10 highlights Azerbaijan’s sustainable development priorities and national measures implemented to mitigate adverse environmental impacts of the power sector. National environmental regulation translates into a stream of electricity / thermal power plan requirements setting limits for emissions of hazardous substances. The Law on Power and Thermal Power Plants reaffirms pollution abatement principles stated in international treaties. Emissions calculation is carried out with due consideration of features and conditions specific for electricity / thermal power plants.
Energy-water nexus: 
Art. 12 focuses on the energy-water nexus. Standards for sewage waters are established in compliance with the international norms and requirements set by the national legislation on water pollution abatement.
Pricing
Renewable energy subsidies: 
Art. 3.2. To unleash the potential of renewable energy through increasing its economic attractiveness, RES subsidization schemes are introduced.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Chapter III. While expediting the national infrastructure development efforts, the policy strengthens technical regulatory requirements for electric power plants. It is underscored that the design, construction and operation of power plants, connection to the grid system shall meet the established safety norms and requirements on the protection of the environment. ---The policy gives considerable attention to the development of solar power stations, wind plants with generation capacity of 10-100 kWt, hydropower stations – generation capacity of 50-10 000 kWt, power plants using 80 per cent of biomass for electricity generation.
Investment
Financial incentives for energy infrastructure: 
Art. 3.2. To unleash the potential of renewable energy through increasing its economic attractiveness, RES subsidization schemes are introduced.
Investment climate development: 
Art. 3.2. To unleash the potential of renewable energy through increasing its economic attractiveness, RES subsidization schemes are introduced.