Legal framework and goals of reforms

The Law of the Republic of Azerbaijan No. 858-VIQ dated April 11, 2023 “On Electric Power” entered into force on January 1, 2024 and forms the basis of a new era in the country's electric power sector. The main goal of the law is the legal and administrative separation of the activities of electricity generation, transmission, distribution and supply, the creation of the necessary regulatory environment and the application of market principles.

Stages of transiton to a new market model

In order to ensure smooth adaptation of electricity entities and consumers to market changes, form free competitive relations, and eliminate subsidization, it is planned to implement the elements of the electricity market in 3 (three) stages.

The main advantages of switching to a competitive market

The transition to a new competitive market model not only accelerates the energy transition, but also creates the following advantages for both the economy and consumers:

• Providing consumers with the opportunity to choose their electricity suppliers;
• Creation of electricity supply entities and a healthy competitive environment;
• Introducing innovations in the sector and attracting investments in the renewable energy sector;
• Stimulating the use of cleaner and more environmentally sustainable energy sources by facilitating market entry for participants.