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HOME »CountryFactsheets »Asia »Azerbaijan| Electricity Market | |
| Sector structure | |
| Upstream | The sector is publicly-owned.
The sector is highly concentrated: Azerenergy JSC is the dominant player, accounting for 98% of production in 2007.
Arzebaijan Hydro-schemes remain state-owned.
Imports from Russia, Iran and Turkey and exports are mainly directed to Russia, Georgia, Iran and Turkey.
Wholesale prices are regulated by Tariff (price) Council.
Vertical integration along all the segments of the supply chain. |
| Networks | Transmission is publicly-owned while distribution is partially privatised.
The transmission network is nationwide.
Several cross-border lines permit export to Turkey, Georgia, Russia and Iran.
100% state-owned Azerenergy is the exclusive licensee to transmit. thus the vertically-integrated former monopolist Azerenergy remains owner of the transmission grid that is operated under a RTPA regime.
Three distribution system operators (DSO) operates their networks under a RTPA regime. Aze. Azerenergy, Bakuelectricshebeke and Sumgaitelectricshebeke are main distribution companies.
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| Downstream | The sector is partially privatised.
Distributors (Azerenergy, Bakuelectricshebeke and Sumgaitelectricshebeke) are the dominant suppliers.
The market is partially opened since 2000.
End-user prices are regulated by Tariff (price) Council. |
| Gas Market | |
| Sector structure | |
| Upstream | The sector is publicly-owned.
The state-owned SOCAR is the sole producing company. No IGP.
Long and short term supply contracts, and gas trading among agents through bilateral transactions.
Exports to Georgia.
The wholesale market is organised as a single buyer model, and wholesale prices are established by the Regulator.
Some LNG terminals. |
| Networks | Transport, distribution and storage are still publicly-owned.
The transport network is nationwide.
One distribution area, controlled by AzeriGas that is the main player (100 % of market). |
| Downstream | The sector is still publicly-owned.
The distribution company is the dominant supplier.
The market is not opened (all consumers are captive).
End-user prices are regulated. |
| Current issues | Significant new electricity interconnection projects under construction/study by international finance institution |
| National Legislation | Law on Energetic 1999
Law on Gas supply |
| Sources | Tariff (Price) Council of the Republic of Azerbaijan |