23 July 2018, 14:56

The monitoring and evaluation results for the 2017 implementation of the Strategic Roadmap for Utility Services (electricity, heating, water, and gas) in the Republic of Azerbaijan have been published. The roadmap includes seven strategic goals, with an overall implementation rate of 68%: 55% of planned measures fully implemented, 25% partially, and 20% not implemented.

  1. Ensuring Stability and Efficiency in Utility Sector Regulation – 91% fully implemented, 9% not implemented. Measures included establishing the Energy Regulatory Agency under the Ministry of Energy, introducing a payment regulation framework for state-owned shares in electricity and gas distribution, and automating mutual payments between state-owned entities.

  2. Ensuring Diversified and Environmentally Clean Electricity Production – 56% fully implemented, 36% partially, 18% not implemented. Activities included preparing forecasts of domestic electricity demand, assessing the country’s renewable energy potential (total 5540 MW), identifying regions with high energy potential, and analyzing costs for production, export, and market participation. The State Agency for Alternative and Renewable Energy Sources led these efforts.

  3. Applying Global Efficiency and Quality Standards – 42% fully implemented, 25% partially, 33% not implemented. Actions included preparing a plan to optimize electricity station efficiency, developing the 2016–2025 Master Plan for distribution networks, analyzing the impact of tariff changes on electricity consumption, and drafting a new Law on Electric Power reflecting international practices and national economic conditions.

  4. Creating Efficient and Effective Gas Distribution Infrastructure – 27% fully implemented, 33% partially, 40% not implemented. Measures included analyzing gas networks and losses, preparing a 19-step development plan for 2017–2020 to improve system efficiency and customer satisfaction, and studying alternative energy solutions for remote settlements.

  5. Establishing Advanced Water Management Structures – 78% fully implemented, 20% partially. Activities included preparing master plans for 170 small settlements, increasing the number of metered non-residential consumers to 49,575 (87.1% metering coverage), and constructing 27.4 km of mains, 177.4 km of networks, 16.1 km of sewage, and 30.6 km of stormwater lines. Additionally, 2 water pumping stations, 1 sewage pumping station, and 55,000 water meters were installed.

  6. Reducing Water Supply Losses and Improving Efficiency – 50% fully implemented, 50% partially. Measures included phased implementation of water and sewage projects in underserved areas of the Absheron Peninsula, preparing investment plans for 2018–2024, reducing network water losses by 0.8%, and adopting amendments to the Water Code to improve monitoring, water accounting, and payment regulation.

  7. Creating Sustainable and Reliable Heating Supply Infrastructure – 69% fully implemented, 17% partially, 14% not implemented. Activities included monitoring heating systems in Baku and regions, preparing project documentation for reconstruction and modernization, developing draft regulations on heating use and consumption limits, and evaluating private and commercial heating systems to reduce losses and costs.

Key implementing institutions’ performance in 2017:

  • State Agency for Public Service and Social Innovations – 100%

  • “Azəristiliktəchizat” JSC – 93%

  • Ministry of Economy – 89%

  • “Azərsu” ASC – 79%

  • Ministry of Finance – 75%

  • Tariff (Price) Council – 67%

  • Ministry of Energy – 64%

  • “Azərenerji” ASC – 50%

  • State Oil Company of Azerbaijan (SOCAR) – 46%

  • “Azərişıq” ASC – 38%


Center for Analysis of Economic Reforms and Communication
www.ereforms.gov.az