BAKU, Azerbaijan, June 2. At the initiative of the Ministry of Energy, an event was organized as part of the 31st Baku Energy Week on “Energy Efficiency & ESCO Investment Platform: Bridging Global ESCO Expertise with Azerbaijan’s Large Energy Consumers,” Trend reports via the country's Ministry of Energy.
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, to transform international experience into concrete projects, and to establish direct dialogue between international ESCO companies and major energy consumers in the country.
Deputy Minister of Energy Elnur Soltanov emphasized that energy efficiency plays a significant role in the country’s energy policy and noted the importance of studying and applying international ESCO experience in this field. The Deputy Minister noted that there are approximately 500 major energy consumers in Azerbaijan and stated that energy efficiency measures based on private investment would benefit consumers, investors, and the country as a whole.
Elmir Musayev, CEO of SOCAR Green, noted that the ADSEA decarbonization roadmap was developed in collaboration with the Azerbaijan State Agency for Water Resources (ADSEA) and that, based on international experience, energy efficiency gains of up to 25 percent could be achieved at that agency.
Representatives from the Turkish Energy Efficiency and Management Association, 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 then took the floor.
The presentations emphasized the importance of achieving energy efficiency in terms of enhancing economic competitiveness, reducing energy costs, strengthening energy security, and cutting greenhouse gas emissions. It was noted that the results-based financing mechanisms used by ESCOs allow energy consumers to implement energy efficiency projects without large upfront investments. Thus, ESCOs finance energy efficiency measures and recoup their investments based on the energy savings achieved.
During the discussions, information was presented on the country’s legislative framework regarding energy efficiency, energy audits, and energy consumption management. It was noted that measures are being taken to create a favorable environment for the development of the energy service company (ESCO) market in Azerbaijan, and expanding cooperation with international partners is one of the goals in this regard.
