At the initiative of the Ministry of Energy, an event entitled Energy Efficiency and the ESCO Investment Platform: Connecting Global ESCO Experience with Azerbaijan's Major Energy Consumers was held as part of the 31st Baku Energy Week.
The event, attended by representatives of government agencies, international financial institutions, the private sector, and international companies, aimed to promote the Energy Service Company (ESCO) model as an effective investment and institutional mechanism for improving energy efficiency in Azerbaijan, transform international best practices into concrete projects, and establish direct dialogue between international ESCO companies and the country's major energy consumers.
Elnur Soltanov, Deputy Minister of Energy, emphasized that energy efficiency occupies an important place in the country's energy policy and highlighted the importance of studying and applying international ESCO experience in this field. He noted that Azerbaijan has nearly 500 major energy consumers and stated that privately financed energy efficiency measures would generate benefits for consumers, investors, and the country as a whole.
Elmir Musayev, General Director of SOCAR Green, stated that, in cooperation with the Azerbaijan State Water Resources Agency (ADSEA), a roadmap for the decarbonization of the Agency has been prepared. He noted that, based on international best practices, energy efficiency improvements of up to 25% could be achieved within the Agency.
The event continued with presentations by representatives of the Energy Efficiency and Management Association of Türkiye, Honeywell, ABB, Europower Energy, Boston Consulting Group, Rapid Solutions, Energazer, Azeraluminium LLC, Azersun Holding, the Asian Development Bank, the World Bank, and the European Bank for Reconstruction and Development.
The speakers emphasized the importance of improving energy efficiency as a means of enhancing economic competitiveness, reducing energy costs, strengthening energy security, and lowering greenhouse gas emissions. It was noted that the performance-based financing mechanisms employed by ESCO companies enable energy consumers to implement energy efficiency projects without making substantial upfront capital investments. Under this model, ESCO companies finance energy efficiency measures and recover their investments through the resulting energy savings.
During the discussions, participants were also informed about the legislative framework established in Azerbaijan in the field of energy efficiency, as well as the measures being implemented in the areas of energy audits and energy management. It was noted that efforts to create a favourable environment for the development of the ESCO market in Azerbaijan are ongoing and that expanding cooperation with international partners remains one of the country's key priorities in this area.
