Azerbaijan Prioritizes Secure And Optimized Energy Future - AERA Chairperson (Interview)

2026-03-02 03:03:13

(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 2. Strengthening energy security and ensuring the efficient use of energy resources remain key priorities of Azerbaijan's state policy, Samir Akhundov, the Chairperson of the Azerbaijan Energy Regulatory Agency (AERA), said in an interview with Trend.

Akhundov noted that the Energy Efficiency Fund was established under Presidential Decree No.13 dated March 1, 2024, and outlined its mission and long-term objectives. He emphasized that the fund's primary purpose is to promote the efficient use of energy resources and to support projects aimed at improving energy performance across various sectors of the economy.

According to him, the fund will provide concessional loans through authorized credit institutions, implement pilot projects, and allocate grants and subsidies. Pilot projects are expected to focus primarily on state-owned social, educational, and healthcare institutions. Subsidies will partially finance energy efficiency-related expenses, particularly for entities subject to mandatory energy audits and non-residential public buildings. Grants will mainly support scientific research and innovation in higher education institutions and research centers.

"The concessional loan program covers small, medium, and large-scale financing. Loans ranging from 1,000 manat ($588.2) to 50,000 manat ($29,410) will be issued for up to five years, loans from 50,001 manat ($29,411) to 1,000,000 manat ($588,218) for up to ten years, and loans from 1,000,001 manat ($588,218) to 10,000,000 manat ($5,882,180) for up to 15 years. At the current stage, the annual interest rate has been set at 5% to ensure accessibility, and both individuals and legal entities will be eligible to apply," he added.

The regulatory framework governing the Fund's operations was further strengthened by the approval of the“Requirements for Projects Financed by the Energy Efficiency Fund” under the Board Resolution of the Ministry of Energy dated January 22, 2026. The document comprehensively defines the scope of incentive mechanisms, including pilot projects, grants, subsidies, and concessional loans, while clearly identifying target groups and setting out the technical standards and eligibility criteria for supported initiatives. It also specifies the energy efficiency technologies to be deployed under each measure, ensuring both transparency and effectiveness in implementation.

The priority areas for these initiatives are anchored in Article 15.2 of the Law of the Republic of Azerbaijan“On the Efficient Use of Energy Resources and Energy Efficiency.”

"These include support for state programs in energy efficiency, financing of scientific and technical research, the introduction of energy management systems and smart metering technologies, deployment of cogeneration and high-efficiency cogeneration facilities, and expanded utilization of renewable energy sources.

Within this framework, the approved requirements detail concrete technological solutions such as thermal insulation of buildings, installation of modern heating systems, modernization of existing systems to improve efficiency, deployment of solar panels and off-grid renewable energy solutions for active consumers, and installation of high-efficiency lighting systems. Together, these measures are designed to modernize infrastructure while embedding energy-conscious practices across sectors," the chairperson explained.

Akhundov stressed that the fund's long-term benefits extend beyond financial support. By reducing overall energy consumption and cutting costs for households and businesses, the initiative is expected to strengthen economic resilience. Additionally, improved energy efficiency will contribute to lower carbon emissions, a cleaner environment, and Azerbaijan's international climate commitments.

Equally significant are the environmental benefits. Optimized energy consumption contributes to lower carbon emissions, fosters a cleaner environment, and supports Azerbaijan's international climate commitments.

“Ultimately, the Energy Efficiency Fund is not merely a financial mechanism, but a strategic instrument aimed at fostering a culture of efficient energy use, promoting innovative technologies, and ensuring sustainable economic development in the country,” Akhundov said.

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