National stakeholders mull energy efficiency with draft legislation

PESI Chairman Farid Malikov attended a high-level roundtable on energy efficiency legislation in Baku, Azerbaijan.

On 15 March 2018, the Energy Charter Secretariat and the Ministry of Energy of the Republic of Azerbaijan presented the draft Law on the Efficient Use of Energy Resources and Energy Efficiency, which was developed under the auspices of the EU-funded EU4Energy Programme. Based on best EU and international practices, the Law aims at creating a legal basis for the efficient and effective use of energy resources as a part of the state energy policy in the energy sector, and includes modern policy instruments targeting the improvement of energy efficiency in all economic areas to unlock the multiple benefits in Azerbaijan’s real economy.

energy roundtableThe meeting gathered representatives of the relevant ministries and government agencies as well as local and international experts to review and provide their comments and inputs on the draft legal text. 

During the discussion, Farid proposed to encapsulate an environmental management system to streamline the use of energy resources and improve the environmental performance in the industrial sector.

The Law introduces energy audit and provides exemptions for industrial enterprises that implement an energy management system standard. Farid said that stimulating mechanisms and awareness-raising are important for promoting the use of both energy and environmental management standards in industry.

Farid praised the economic and financial mechanisms stipulated by the draft Law to promote energy efficiency. He noted that preferential import duties will ease access to sustainable, environmentally clean and green technologies, while tax incentives help to encourage their use.

Farid emphasized a gradual increase of alternative and renewable energy sources in the electricity production portfolio and suggested to expand the use of solar and wind energy in the future. He also noted the applicability of variable peak pricing to optimize the demand for electricity and adjust the level of energy consumption.energy roundtable

EU4Energy is a European Union Initiative whose objective is to provide support to Eastern Partnership countries in promoting energy market reforms, energy security and sustainable energy. The Energy Charter Secretariat has been working closely with the Government of Azerbaijan in providing technical assistance to support policymaking in the area of energy efficiency.

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