Currently, electricity consumption in Azerbaijan heavily relies on fossil fuels, with more than 88% of electricity generated from such sources, mainly gas which accounts for about 87%. In contrast, low-carbon sources provide nearly 12% of the country’s electricity. Within this category, hydropower is the dominant low-carbon energy source, contributing almost 10%, followed by solar with a modest 1.4%. This imbalance signifies a substantial dependency on fossil fuels, posing challenges to environmental sustainability and climate change mitigation efforts in Azerbaijan.

Data sources used on this page include Ember, Energy Institute and IEA. More about data sources →

Is Electricity Growing in Azerbaijan?

Azerbaijan has not experienced growth in electricity consumption in recent years. The latest data from 2024 shows an electricity consumption rate of 2818 kWh per person, which is 511 kWh less than the historical peak in 1988. Even in the sphere of low-carbon electricity, the current proportion, though significant at 337 kWh per person, remains 40 kWh lower than the record set in 2010. This decline indicates that the country is facing challenges in expanding or even maintaining its electricity consumption growth, particularly in achieving higher levels of sustainable energy use.

Suggestions

To boost its low-carbon electricity generation, Azerbaijan can look towards successful regions for inspiration. Countries like France and Ukraine showcase the benefits of prioritizing nuclear energy, with 70% and 55% of their electricity from nuclear power, respectively. Similarly, the US state of New Mexico presents a good example in solar energy by generating 17% of its electricity from solar panels. Azerbaijan can benefit from studying these regions and adopting similar strategies to diversify and expand its low-carbon electricity sources. The emphasis should ideally be on enhancing nuclear and solar capacities, given their proven track records in other regions, to not only increase sustainable electricity generation but also reduce reliance on fossil fuels.

History

In examining Azerbaijan's historical trends in low-carbon electricity, it is evident that hydropower has experienced fluctuations over the decades. In the early 1980s, there were declines, such as the decrease in 1986 by 0.5 TWh. The early 1990s showed some growth, notably in 1990 with a 1 TWh increase. However, these gains were partially offset by subsequent declines, such as those in 1994 and 1995. Noteworthy progress was made in the early 2000s, with increments in consecutive years between 2002 and 2004. More recently, in 2024 Azerbaijan saw an increase of 1.3 TWh in hydropower, supplemented by a promising rise in solar generation by 0.3 TWh. These advancements indicate potential for more consistent growth in low-carbon electricity, particularly in harnessing solar energy alongside traditional hydropower.

Electricity Imports and Exports

Balance of Trade