Electricity in Azerbaijan in 2022

In 2022, Azerbaijan's electricity consumption was dominated by fossil fuels, particularly natural gas, which constituted more than 93% of the country’s electricity generation. This overwhelming reliance on gas leaves the country's electricity sector vulnerable to fluctuations in fossil fuel markets and contributes significantly to greenhouse gas emissions, which have adverse effects on climate and public health. On the other hand, low-carbon energy sources accounted for only a small fraction of the electricity mix at just over 6%, with hydropower making up the majority of this clean energy share. This highlights a substantial potential for growth in the low-carbon sector to diversify Azerbaijan's electricity sources and reduce its carbon footprint.

Suggestions

To increase its low-carbon electricity generation, Azerbaijan can take inspiration from countries that have successfully integrated clean technologies into their power mix. Neighboring Armenia, for example, generates almost a third of its electricity from nuclear energy, demonstrating the viability of nuclear power in the region. Additionally, Denmark leads by example with a significant portion of its electricity from wind power, showing the effectiveness of leveraging wind resources. By considering these approaches, Azerbaijan could diversify its energy portfolio with both nuclear and wind installations, reducing dependence on fossil fuels and positioning the country for a sustainable energy future.

History

The history of low-carbon electricity generation in Azerbaijan has seen various fluctuations primarily in hydropower. In the early 1990s, an increase in hydroelectric production was noted with a rise of 1 TWh in 1990 and 0.7 TWh in 1993. However, this upward trend did not continue consistently, with notable decreases in subsequent years, such as in 1994, 2011, and 2012. The early 2000s witnessed moderate improvements, with several instances of positive growth like the gains of 0.7 TWh and 0.4 TWh in 2002 and 2003, respectively. Since 2010, growth in hydropower has been sporadic, with notable challenges reflected in declines such as the 0.5 TWh drop in 2020. Despite these fluctuations, recent efforts have renewed some progress in 2022, indicating potential areas for future improvements and development in sustainable electricity.

Electricity Imports and Exports

Balance of Trade

Data Sources