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Asia-Pacific

Azerbaijan

With a power score of 1.63, Azerbaijan ranks number 83 among Emerging Markets and number 21 in the Asia-Pacific region

Power score

1.63/5

12345

Score over time

2021 - 2024

89
2021
86
2022
86
2023
83
2024

Overview

Azerbaijan has a power score of 1.63, which puts it at rank 83 in the Emerging Markets power ranking. In comparison to 2023, Azerbaijan has improved in the power rankings by 3 places, from rank 86, to rank 83.

At 1.63, the power score of Azerbaijan is worse than than the regional average of 1.94 in the Asia-Pacific region and puts it at rank 21 in the region.

Regional comparison chart

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Azerbaijan

Power

Power policy

Azerbaijan implements policies in 5/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Net metering, Import tax incentives, and VAT incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Azerbaijan has remained the same since 2022. Since 2017, the average electricity price in Azerbaijan has fluctuated between 48.36 USD/MWh (2017) and 58.82 USD/MWh (2023).

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Power market

The top amount of capacity installed in Azerbaijan in 2023 was in Natural Gas at 79.62%, down from 81.92% in 2022. The technology with the biggest increase in capacity installed in 2023 was Utility-scale PV at 3.3%, up from 0.44% in 2022.

Installed capacity (in MW)

2000200520102015202002K4K6K8K MW

Electricity generation (in GWh)

20002005201020152020010K20K30K GWh

The top amount of electricity generated in Azerbaijan in 2023 was in Natural Gas at 92.7%, down from 93.29% in 2022. The technology with the biggest increase in electricity generated in 2023 was Large Hydro at 4.8%, up from 4.4% in 2022.

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Investment in clean energy in Azerbaijan was around $367.20 million in 2023, a decrease of 2.32% from 2022 ($375.91 million). Between 2018 and 2023, the highest investment in clean energy was in 2022 at $375.91 million, while the lowest was in 2018 with $44.60 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: No

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

No

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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