Energy Efficiency Fund sources expanded by new amendments in Azerbaijan

The sources for forming the energy efficiency fund are being expanded.

Azernews reports that this issue was discussed in the amendments to the Law "On the Effective Use of Energy Resources and Energy Efficiency," which were included in today’s meeting agenda of the Milli Majlis (Parliament) of Azerbaijan.

The draft law aims to establish the fund’s sources and improve how it is utilized. It plans to expand the fund’s formation sources. According to the draft law, legal grounds will be created for transfers to the energy efficiency fund from the sale of energy types whose prices are not regulated by the state, yet have a significant share in production and consumption and negatively impact the environment.

The addendum to the "Regulation on the Formation and Use of Energy Efficiency Fund," approved by Presidential Decree No. 13 on March 1, 2024, currently only includes four energy products with regulated tariffs — electricity (excluding that produced from renewable sources), natural gas, EU-92 gasoline, and diesel fuel. The law will allow transfers from the sale of four additional types of energy products with non-regulated prices, significantly increasing the fund’s income.

Funds will be directed solely toward promoting energy efficiency measures, as outlined in Article 15.2 of the Law. This will help ensure more efficient use of fund resources. The law will also support the implementation of energy efficiency measures, scientific and technical support, smart meters, cogeneration facilities, renewable energy projects, and initiatives to reduce environmental harm. Additional incentives like grants, subsidies, pilot projects, and concessional loans will also be available.

After discussion, the amendment was adopted in the third reading.