Energy and Economy

Azerbaijan is the most energy-intensive country in the Caucasus. The amount of energy it consumes per GDP adjusted to purchasing power is double that of the German economy, but it remains lower than that of Russia and Kazakhstan. (IFC)

Its economy has been growing at an average rate of 21% per year, achieving the highest GDP growth of any country in the world in 2006 with 34.5%. Nonetheless, even a country like Azerbaijan, rich in oil and natural gas reserves, must focus on a greener future, with energy efficiency occupying  a central role.

Current Policies

Energy efficiency has been promoted since 1996 with the passage of the Law on the Use of Energy Resources that called for mandatory energy consumption metering, introduction of energy efficiency standards and application of sanctions for energy waste. (IFC) It wasn’t until 2004, however, that energy efficiency began to play a more central role after the approval of the State Program on the Use of Alternative and New Energy Sources in the Azerbaijani Republic. The program implemented the help of foreign contractors to conduct research about various renewable energy source potentials available in the country.

Small Scale Examples

Currently,  there are many energy efficiency projects being planned in Azerbaijan. Most importantly these projects are focused on lowering energy usage, since “the land-based industry and infrastructure of energy production and distribution are poorly developed.” (Hunt) This low efficiency will put a heavier burden on the country, as its conventional energy sources are depleting, and the economy is not experiencing the same rate of growth.

The topic of energy efficiency is especially important in the rural areas, where access to water and energy is not constant. A good example of such a project is the planned renovations for the Qara Jali Community Medical Center, which provides medical, dental and midwife services to 450 individuals of two local villages.

Although this building was built in 2005 by the International Medical Corp and through BTC financing, it does not have hot water available for cleaning, a refrigerator to store vaccines, and experiences really cold temperatures in the winter, as a result of constant heat escape.

Some cost efficient energy efficient measures proposed include: installation of ceiling insulation, application of caulking to window gaps, the replacement of  broken or cracked glass windows, and addition of more panels on internal doors. These actions would ensure that the little heat which is stored within the building does not escape through the roof as it rises, or through broken windows and window frames. To compliment this, energy efficiency measures on the outside of the building can be implemented, such as: construction of a porch on the north side (where the most cold air and wind enters from), the reallocation of the front door to the west side and planting of trees around the entire building (providing natural wind barriers and promoting sustainability).

Use of Renewables

In addition to these low cost measures, it is also possible to rely on renewable energy to provide heating, electricity, and any other service required by the community center. Since Azerbaijan enjoys ample sunshine, the use of Solar PV will be the best option. By utilizing solar power, the community will not be dependent on the energy sources of the community, which are not always constant. Most importantly, since the center currently does not have vaccine refrigerators, using a refrigerator that runs on Solar PV will be the most efficient option, since in the summer when its use is needed the most, the panels will be outputting the most energy.

Future of Energy Efficiency

Taking into consideration the current economic decline and depletion of the conventional energy sources of Azerbaijan, the country is heavily focused on installing energy efficiency measures. The lack of a clear understanding of how energy-efficiency can lead to cost-efficiency and self-reliance, however, means that such projects are not very common. This problem could be fixed by having the government provide more reassurance and guidance on taking out bank loans to finance energy-efficiency projects and explaining the long-term benefits of such actions.

Work Cited:

Hunt, Steven. 2006. Azerbaijan Alternative Energy and Energy Efficiency Project Development Support. Practical Action Consulting. Accessed on December 30 from: practicalaction.org/docs/consulting/Azerbaijan_RE_Report.pdf

International Finance Group (IFC). 2008. Energy Efficiency: A New Resource for Sustainable Growth. Accessed on December 24 from: www.ifc.org/…nsf/…/AzerbaijanEEsurvey/…/AzerbaijanEEsurveyEN…

Tekna. 2004. Cleaner Production and Energy Efficiency Capacity Building in Azerbaijan. Accessed on December 28 from: www.ensi.no/uploads/040629.kd.period2_status_report.pdf

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