BAKU, Azerbaijan, March 2. Strengthening energy
security and ensuring the efficient use of energy resources remain
key priorities of Azerbaijan’s state policy, Samir Akhundov, the
Chairperson of the Azerbaijan Energy Regulatory Agency (AERA), said
in an interview with Trend.


Akhundov noted that the Energy Efficiency Fund was established
under Presidential Decree No.13 dated March 1, 2024, and outlined
its mission and long-term objectives. He emphasized that the fund’s
primary purpose is to promote the efficient use of energy resources
and to support projects aimed at improving energy performance
across various sectors of the economy.


According to him, the fund will provide concessional loans
through authorized credit institutions, implement pilot projects,
and allocate grants and subsidies. Pilot projects are expected to
focus primarily on state-owned social, educational, and healthcare
institutions. Subsidies will partially finance energy
efficiency-related expenses, particularly for entities subject to
mandatory energy audits and non-residential public buildings.
Grants will mainly support scientific research and innovation in
higher education institutions and research centers.


"The concessional loan program covers small, medium, and
large-scale financing. Loans ranging from 1,000 manat ($588.2) to
50,000 manat ($29,410) will be issued for up to five years, loans
from 50,001 manat ($29,411) to 1,000,000 manat ($588,218) for up to
ten years, and loans from 1,000,001 manat ($588,218) to 10,000,000
manat ($5,882,180) for up to 15 years. At the current stage, the
annual interest rate has been set at 5% to ensure accessibility,
and both individuals and legal entities will be eligible to apply,"
he added.


The regulatory framework governing the Fund’s operations was
further strengthened by the approval of the “Requirements for
Projects Financed by the Energy Efficiency Fund” under the Board
Resolution of the Ministry of Energy dated January 22, 2026. The
document comprehensively defines the scope of incentive mechanisms,
including pilot projects, grants, subsidies, and concessional
loans, while clearly identifying target groups and setting out the
technical standards and eligibility criteria for supported
initiatives. It also specifies the energy efficiency technologies
to be deployed under each measure, ensuring both transparency and
effectiveness in implementation.


The priority areas for these initiatives are anchored in Article
15.2 of the Law of the Republic of Azerbaijan “On the Efficient Use
of Energy Resources and Energy Efficiency.”


"These include support for state programs in energy efficiency,
financing of scientific and technical research, the introduction of
energy management systems and smart metering technologies,
deployment of cogeneration and high-efficiency cogeneration
facilities, and expanded utilization of renewable energy
sources.














Within this framework, the approved requirements detail concrete
technological solutions such as thermal insulation of buildings,
installation of modern heating systems, modernization of existing
systems to improve efficiency, deployment of solar panels and
off-grid renewable energy solutions for active consumers, and
installation of high-efficiency lighting systems. Together, these
measures are designed to modernize infrastructure while embedding
energy-conscious practices across sectors," the chairperson
explained.


Akhundov stressed that the fund’s long-term benefits extend
beyond financial support. By reducing overall energy consumption
and cutting costs for households and businesses, the initiative is
expected to strengthen economic resilience. Additionally, improved
energy efficiency will contribute to lower carbon emissions, a
cleaner environment, and Azerbaijan’s international climate
commitments.


Equally significant are the environmental benefits. Optimized
energy consumption contributes to lower carbon emissions, fosters a
cleaner environment, and supports Azerbaijan’s international
climate commitments.










“Ultimately, the Energy Efficiency Fund is not merely a
financial mechanism, but a strategic instrument aimed at fostering
a culture of efficient energy use, promoting innovative
technologies, and ensuring sustainable economic development in the
country,” Akhundov said.



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