BAKU, Azerbaijan, October 28. The amount of conventional fuel consumed for the generation of each kilowatt-hour of electricity at the Azerbaijan Thermal Power Plant has been reduced by more than 30% as a result of measures implemented to enhance energy efficiency in the country, Deputy Minister of Energy of Azerbaijan Elnur Soltanov said during the 9th Sustainable Development Goals (SDG) Dialogue held in Baku on Wednesday, Trend’s correspondent reports from the event.
The deputy minister noted that sustainable development in the energy sector is not limited solely to increasing investments in renewable energy sources. Enhancing energy efficiency, upgrading existing infrastructure, and reducing energy losses also play a crucial role in this process.
"Looking merely at the scale of renewable energy investments is not enough. It’s also vital that the state dedicates significant energy, effort, time, and resources to this sector. Another key area is energy efficiency, and Azerbaijan has taken significant steps in this regard as well," Soltanov remarked.
He recalled that the Azerbaijan Thermal Power Plant, with an installed capacity of 2.4 gigawatts, is the largest in the Caucasus. A few years ago, the plant's systems were upgraded using equipment manufactured in Italy.
"What was once Azerbaijan's least efficient power plant has now become the country's most efficient one. Previously, 330 grams of 'standard fuel' were consumed to generate one kilowatt-hour of electricity; today, this figure is below 220 grams. Consequently, we have achieved an efficiency increase of over 30%," the deputy minister noted.
According to him, this improvement could lead to annual savings of nearly half a billion cubic meters of natural gas. This highlights the economic and environmental significance of modernizing existing energy infrastructure.
Soltanov also addressed losses occurring during the transmission and distribution of electricity. He noted that losses in transmission lines are at a level comparable to global best practices. However, higher loss rates in distribution networks necessitate further measures in this area.
The deputy minister pointed out that, in addition to upgrading existing infrastructure to reduce energy losses in distribution networks, it’s also essential to attract financial resources and strengthen cooperation with banks.
He emphasized the significant role that buildings and facilities play in enhancing energy efficiency. He noted out that a substantial portion of electricity is consumed within these very structures, and improving their energy performance can help reduce overall consumption.
"Starting next year, the mandatory implementation of 'building passports' is planned. We should support the construction of higher-quality, energy-efficient buildings through incentives rather than punitive measures," Soltanov explained.
According to him, the objective is to enhance the market advantages of buildings with high energy efficiency. In this context, the introduction of a certification mechanism, in the form of 'passports' that reflect energy performance, is envisaged.
"We are striving to create incentive mechanisms for the construction of high-quality, efficient buildings, rather than relying primarily on fines. For instance, a building with an 'A' grade energy certificate could command a higher market value, as such a structure would consume less electricity and other forms of energy," the deputy minister remarked.
He added that efforts to enhance energy efficiency extend beyond buildings; work is also underway to develop standards ensuring the efficient operation of various types of equipment.
Soltanov also highlighted initiatives within the oil and gas sector aimed at decarbonization. He mentioned that SOCAR is taking significant steps in this direction, and that the company's activities could contribute to the fulfillment of Azerbaijan's climate commitments.
"Indeed, SOCAR is taking revolutionary steps that are a source of pride for our country. I believe that SOCAR, as the leading entity in the oil and gas sector, will be able to accelerate the implementation of certain requirements outlined in Azerbaijan's third Nationally Determined Contribution (NDC 3)," he stressed.
The deputy minister pointed out that the initiatives joined by SOCAR include the Oil and Gas Decarbonization Charter and the Oil and Gas Methane Partnership 2.0.
"These are among the most serious and verifiable initiatives in the world," Soltanov said.
According to him, increasing energy efficiency, reducing losses in electricity grids, improving the energy performance of buildings, and lowering emissions in the oil and gas sector are complementary areas in Azerbaijan's transition toward a sustainable energy system.
