Minister: Azerbaijan carries out reforms to foster competition in energy sector

The natural monopoly nature of electricity and natural gas transmission and distribution in Azerbaijan, as well as the need to ensure uninterrupted supply and system security, necessitates effective state regulation, Azerbaijani Energy Minister Parviz Shahbazov stated at the 3rd National Competition Forum in Baku, Report informs.

Shahbazov noted that, alongside strengthening Azerbaijan's traditional energy potential with the participation of foreign investors, renewable energy sources are being integrated into the energy system at an increasingly rapid pace.

"New generation capacities are being created, and private-sector participation is expanding. In recent years, extensive legislative and institutional reforms have been carried out to promote a competitive environment in the energy sector. The adoption of six new laws is a clear manifestation of these reforms," the minister said.

He stressed that it is important to take into account the technological and economic characteristics of the energy sector when applying competition principles.

"The natural monopoly nature of electricity and natural gas transmission and distribution, the need for uninterrupted supply, and system security make effective state regulation essential. Therefore, priority is given to creating equal opportunities in areas where competition is possible, while ensuring transparency, efficiency, and consumer protection in natural monopoly activities," Shahbazov added.