The Asian Development Bank (ADB) has provided technical assistance worth $1.1 million to support the decarbonization process of the heating sector and the integration of renewable energy in Azerbaijan, Report informs referring to the ADB.
The project is funded by the Clean Energy Fund ($600,000) and the Technical Assistance Special Fund ($500,000).
The main objectives of the project are to reduce dependence on natural gas through transition to renewable energy sources, such as solar, wind and geothermal, improve energy efficiency of existing heating systems, develop new legislation, including the National Heating Strategy and legislative acts in this area, as well as optimize tariff policy to ensure financial sustainability of the sector.
“The proposed technical assistance (TA) aims to modernize Azerbaijan’s heating sector by advancing efficiency, sustainability, and decarbonization. It will enhance space heating services (and potentially cooling), promote the integration of renewable energy through a small-scale pilot project, and strengthen the policy and regulatory framework. Key outputs include the development of a National Heating Strategy and the drafting of a new Heat Law, with a focus on updating regulatory instruments such as the heat tariff methodology. The TA will also assess the performance of Azeristiliktechizat OJSC (AIT), Azerbaijan’s primary state-owned heating operator, and provide actionable recommendations to improve corporate governance, optimize business processes, reduce reliance on state subsidies, and enhance operational commercialization,” reads the report.
