In Azerbaijan, the current state of electricity consumption reveals a heavy reliance on fossil fuels, which account for more than 88% of the total electricity generated, with gas being the dominant fossil fuel at roughly 88%. Clean energy sources like hydropower and solar make up nearly 12% of the electricity pie, with hydropower contributing close to 10% and solar a modest 1.4%. This demonstrates that while there is some commitment to clean energy sources, a vast majority of Azerbaijan’s electricity still stems from fossil fuels, which contribute to climate change and air pollution.

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

Is Electricity Growing in Azerbaijan?

Regarding electricity growth, Azerbaijan currently witnesses a decline when compared to historical levels. The nation's average electricity consumption per capita is now 2818 kWh, which is a reduction of approximately 511 kWh from the peak consumption recorded in 1988 of 3329 kWh per person. This decline is mirrored in clean energy usage as well, where current per capita low-carbon electricity generation stands at 337 kWh, down by 40 kWh from its previous high in 2010. This stagnation raises concerns about Azerbaijan's ability to meet future demands and transition to more sustainable, clean electricity sources.

Suggestions

For Azerbaijan to increase its low-carbon electricity generation, it could learn from regions with successful clean energy implementations. Neighboring Armenia, for example, derives a significant portion of its electricity—33%—from nuclear, demonstrating that nuclear power can be a substantial contributor even in the Caucasus. Meanwhile, countries like Denmark, with its 60% reliance on wind energy, and successful solar implementations in states like California (31% solar), suggest pathways Azerbaijan might pursue. These models emphasize the importance of diverse investments in various low-carbon technologies, including solar and nuclear, as critical components in transitioning away from fossil fuel reliance.

History

Looking back at Azerbaijan's history in low-carbon electricity, especially hydropower, reveals a fluctuating journey. In the early 1990s, Hydropower growth was notable, followed by some years of decline. Significant gains were especially seen in 2010 and more recently in 2024, demonstrating some positive momentum. Despite this, other years saw reductions which indicate inconsistencies in maintaining a steady increase in clean electricity generation. The addition of solar in 2024, albeit small, indicates a positive diversification step. These fluctuating efforts underscore the need for strategic, robust policy frameworks and investments directed at enhancing sustainable electricity initiatives to guarantee consistent and impactful growth in low-carbon power generation.

Electricity Imports and Exports

Balance of Trade