Delivering the transition to energy efficient lighting in Azerbaijan

GEF ID: 5156
Focal Areas: Climate Change
Country(ies): Azerbaijan
Geograpic scope: National
Project Description:

B.1. Describe the baseline project and the problem that it seeks to address:


I.                   Summary of the national energy situation  


Azerbaijan has one of the fastest growing economies in the world, largely due to its oil production. Given its major reserves, the Azerbaijan’s energy needs are met entirely with gas and oil. The country faces a legacy of aging Soviet-era infrastructure and a history of environmental degradation associated with fossil fuel development. The improvement of Azerbaijan’s energy intensity and energy efficiency are essential steps towards more sustainable energy consumption. Azerbaijan has one of the highest energy intensities in Eastern Europe, indicating a low level of energy efficiency. Contributing factors include outdated technologies, inefficient equipment, limited pollution control mechanisms, inadequate waste management, and the poor quality of raw materials. Azerbaijan produces enough electricity to meet domestic needs, but due to transmission and distribution limitations must rely on imports to meet the needs of some localities. Energy conservation through efficient lighting would decrease the frequency of blackouts and could potentially free up electricity for export.


Energy efficiency investments are a great opportunity for the Azerbaijan, which is already making some strides. Azerenergy has noted a small decline in consumption in the Azerbaijan recently due to its efforts to improve efficiency. Improvements in natural gas supply and the introduction of electricity meters across the Azerbaijan have improved efficiency while also addressing access and security.

II.                Summary of the national efficient lighting situation

Azerbaijan has begun to promote energy efficient lighting. Namely, a proposal for The Parliament is considering MEPS for lamps and the National Standard Agency is preparing mandatory labels for lamps. Energy efficiency awareness raising campaigns through media and school educational programmes have been conducted in some cities.  Baku is planning to establish CFL collection points and to build a recycling facility for electronic waste.

Most of these activities have yet to be implemented and most are not planned on a national level. Azerbaijan still needs to define the absolute levels of the lamp MEPS (including LED lamps) and make sure that these standards incorporate global best practices.

Azerbaijan lacks a robust quality control and enforcement system to prevent low performance lamps from entering its market. International testing standards and a lighting laboratory need to be established and an enforcement system created. More efforts to establish demand side management will help introduce new lighting technologies. A public information campaign would educate people about the environmental benefits to collecting and eventually recycle mercury-added lamps. Concurrently, CFL collection points and a collection system must be set up throughout the Azerbaijan. Azerbaijan can expand beyond promoting efficient lighting in residential sector to the commercial/industrial and outdoor sectors to gain much greater reductions in electricity demand, consumption and related GHG emissions.

III.                   Summary benefits of the transition to energy efficient lighting


A thorough transition to efficient lighting in the residential, commercial/industrial and outdoor sectors would yield environmental benefits of 454.6 kilotons of CO2 annually Electricity consumption would be reduced by 1.1 TWh annually (approximately 8% of total national electricity consumption). Lighting electricity consumption would be reduced by 50%. Annual cost savings would be approximately 55.8 million USD.



Annual benefits of the transition to efficient lighting in Azerbaijan

(Residential, commercial/industrial and outdoor sectors)


CO2 emissions reductions (Kt)

Energy savings (TWh)

Cost savings (million USD)





The phase out of inefficient incandescent lamps would result in reductions of approximately 380 kilotonnes of CO2 annually, electricity consumption would be reduced by 0.92 TWh and costs savings would be 53 million USD.



Lead Executing Agency: URC (UNEP Risoe Centre )
Project Type: FSP
PPG/PDF Grant: $ 3,000,000.00
PPG Confinancing: $ 12,000,000.00
Project Grant: $ 0.00
Project Confinancing: $ 0.00

Project Status

PIF: PIF Submission Date   Unspecified
GEF Approval Date   Unspecified No Document
PPG: GEF Approval Date   Unspecified No Document
UNEP Approval Date   Unspecified
Completion Date   Unspecified
Project: Expected CEO Approval Date   Unspecified
Project Submission To GEF  Unspecified
CEO Approval Date  Unspecified No Document
UNEP Approval Date  Unspecified
Completion Date  Unspecified No Document