Hajizadeh Elshan Makhmud oglu

Prof. Dr., Azerbaijan State University of Economics

Head of the Center of Energy Economics

elshan@hajizada.com

ORCID ID: 0000-0001-5447-9676

Introduction

Energy security and related energy efficiency issues are part of the national energy strategy in most economically developed countries. In the modern world, energy security also includes issues related not only to the quantity of consumption, but also to its quality. In this regard, a sustainable socially oriented state does not separate energy security from energy efficiency and considers it an important indicator of the country's level of development. The Republic of Azerbaijan is also among the countries of the world with abundant hydrocarbon energy resources in terms of current and future prospects. Although energy security is ensured in the country, its strengthening and enrichment with elements of energy efficiency are the main priorities of the ongoing reforms. This issue is also of scientific relevance. In this regard, the article deals with issues related to energy security and energy efficiency priorities in the Republic of Azerbaijan.

Material

Providing energy resources increases the importance of Azerbaijan in ensuring energy security of Europe and a number of world countries. This is done by means of its sufficient oil and gas export pipelines. At the same time, the role and importance of the Baku-Tbilisi-Ceyhan export oil pipeline named after Heydar Aliyev is even higher. Azerbaijan is also reacting to the Southern Gas Corridor, one of the largest energy projects in the world. The Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), which are part of this corridor, turn it into a more reliable European gas supplier.

In addition to oil and gas resources, other natural energy sources in Azerbaijan are promising. Sunny and windy areas, numerous rivers, thermal waters as a separate energy source open wide opportunities for the creation of alternative energy resources in the country. The liberated Karabakh region is strengthening these opportunities with its green energy potential. Preliminary estimates show that Azerbaijan has about 27,000 megawatt of renewable energy reserves. In general, the country's existing electricity potential is more than 7,000 megawatt, half of which is still unused. However, it should be noted that despite the country's strong energy potential, it is important to do some work to ensure its sustainable and reliable energy security.

In strengthening energy security, problems in the production and infrastructure complex must be eliminated and a more modern system must be established in this direction. Thus, the country's existing oil and gas refineries are not able to meet its demand for fuel and energy resources in all categories. There are still a number of energy products that are imported from abroad. There are also shortcomings in gas processing, treatment and supply in accordance with standards. In order to provide the population with more reliable gas resources, it is important to increase reserves and further expand the active volume of gas storage facilities. The power system also needs a large-scale reconstruction and modernization. On the other hand, the share of renewable energy sources in the total energy balance is slightly less than 2 percent. This means that 0.5 percent of the country's renewable energy potential is still being used. In addition, energy saving and energy efficiency issues are pending. There is an urgent need for extensive institutional restructuring, the establishment of an energy audit institute, the expansion of the use of low-energy facilities, the reduction of losses, the adoption of energy saving measures and the expansion of the application of more advanced standards in all these areas.

All this is one of the main goals of energy policy in the Republic of Azerbaijan, and energy security and energy efficiency are at the forefront. In this regard, a new reform process has been launched in the country to ensure the implementation of energy policy. A number of new institutions in the energy sector have been targeted and new development points have been identified. Work has begun on developing a long-term development strategy for the energy sector and a phased transition to a liberal market model based on competition in the energy sector. Along with all this, the country is working in the field of nuclear energy. For this purpose, the "National Center for Nuclear Research" has been established and a 20-MW research nuclear reactor is being built.

The solution of issues related to energy saving and energy efficiency in the Republic of Azerbaijan will be resolved in the legal field with the adoption of the Law "On Rational Use of Energy Resources and Energy Efficiency". This law provides for the efficient and effective use of energy resources. It will establish the legal basis for regulating relations between the participants and bringing the use of energy resources in line with modern requirements and standards. With the adoption of the law, a number of sub-normative legal acts based on international best practices will be developed. The innovations will also address issues such as eliminating unfair competition in the energy sector and increasing transparency in energy efficiency services.

Conclusion

These studies and analyzes once again confirm the high reliability of energy supply in Azerbaijan. However, new concepts and special programs need to be developed to make energy security sustainable and stable in the country and to increase energy efficiency. It is proposed to consider the following priorities in this direction:

• establishment of the country's energy security indicative management system and expansion of the network of energy efficiency services;
• determination of incentive efficiency norms and limits for the purpose of rational use of energy resources in all sectors of the economy;
• development and gradual implementation of the concept of replacing tariff regulation with free pricing mechanisms;
• continuation of measures to improve the regulatory framework that provides favorable market conditions in the energy sector, limiting monopolies;
• expanding energy integration based on national interests and mutually beneficial cooperation with countries and leading companies around the world.

These priorities, which characterize the sustainable provision of national energy security, do not fully cover all strategic measures. It is believed that in the field of practical application, these priorities will be subjected to more fundamental economic justifications, and they will be formed in a structure appropriate to the changing political and economic situation and will be more scientifically logical.

Key words: energy security, energy efficiency, reforms, strategy.

References

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