Energy Minister Parviz Shahbazov delivered a speech on A New Stage in Azerbaijan’s Competition Policy at the 3rd National Competition Forum.
The Minister spoke about the measures being implemented to foster a competitive environment in the energy sector, encourage investment and expand private sector participation.
Minister Parviz Shahbazov stated that fostering a healthy competitive environment and stimulating investment activity are of great importance in the economic policy pursued under the leadership of President of the Republic of Azerbaijan Ilham Aliyev. In the energy sector, the development of competition is aligned with the objectives of ensuring energy security, reliability of supply and the protection of consumer interests.
It was noted that the oil strategy initiated by National Leader Heydar Aliyev, together with the large-scale energy projects implemented in subsequent years, has played an exceptional role in integrating Azerbaijan into international energy markets and strengthening its position as a reliable investment partner. It was noted that within the framework of this strategic course, efforts are being made not only to develop the conventional energy potential but also to integrate renewable energy sources into the energy system and expand private sector participation.
The Minister emphasised that six new laws have been adopted in the energy sector in recent years, contributing to the development of market relations, the unbundling of activities, greater transparency and the establishment of a favourable legal environment for investment. He highlighted the importance of ensuring equal opportunities in areas where competition is feasible, while maintaining effective state regulation of natural monopoly activities.
Referring to ongoing renewable energy projects, the Minister stated that large-scale solar and wind energy projects are currently being implemented in cooperation with Masdar, ACWA Power, bp, as well as companies from China and other countries. Plans are also under way to develop four power plants with a combined capacity of 150 MW in Jabrayil and Nakhchivan, with the participation of local investors. It was noted that the commissioning of 11 power plants with a total capacity of approximately 2 GW is expected to be completed by the end of 2027. Private investment in these projects is projected to exceed 2 billion USD, while public investment is expected to surpass 600 million USD. Under the agreements signed, approximately 8 GW of solar and wind power capacity is planned to be developed in the country by 2032.
Highlighting the importance of competitive auction mechanisms in renewable energy development, the Minister stated that the 100 MW Gobustan Solar Power Plant, constructed by the winner of Azerbaijan's first renewable energy auction, has been commissioned, with further auctions planned from 2028 onwards.
The Minister also noted the measures being taken to improve energy efficiency and facilitate businesses' access to energy infrastructure. As a result of applying the "One Window" principle, the number of procedures required for connection to the electricity grid has been reduced from 7 to 2, while the connection period has been shortened from 41 to 20 days. It was emphasised that ensuring the sustainable and competitive development of the energy sector will remain a key priority in line with the policy set out by the President of the Republic of Azerbaijan.
