ADNSU ENERGY MANAGMENT

PESTLE
ANALYZE
of Azerbaijan’s electricity
trade
group: E5322
student: Aytaj Huseynova
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Contents:
Electricity trade
Azerbaijan’s electricity trade
PESTLE analyzing
Factors
Conclusion

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Electricity trade
refers to the buying and selling of electricity between
countries, regions, and private companies.

Ways to trade:

 bilateral contracts
 power exchanges
 spot markets

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—Trade reasons
 Shortages in supply / demand
 Price differentials between regions / countries
 Economic growth
 Energy security
 Reducing costs

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Azerbaijan
is a member of the Energy Community Treaty, which
aims to create a single market for energy in Southeast
Europe and beyond.

According to data from the IEA, Azerbaijan's electricity

exports in 2019 totaled around 800 GWh, which
represents less than 1% of the country's total electricity
production.

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Statistics

Export

İmport

Production

0 5000 10000 15000

2022 Jan-June

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Market share
Export
Georgia, Turkey, Iran, Russia

Import
Georgia, Russia, Iran

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Market Analysis

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Market Analysis

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Electricity İmport
70
60 Georgia – 24,7
50
40
30 Russia – 63,5
20
10
0 Iran – 22,4
İran
Georgia
Russia
*Note: It shows the 2020 indicators in mln kVts based.

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Electricity Export
600
Georgia – 505,2
500

400
Turkey – 164,1
300

200 Russia – 63,7

100
Iran – 238,9
0
Georgia Turkey Russia Iran
*Note: It shows the 2020 indicators in mln kVts based.

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01
State-owned companies
Efforts to liberalize retail marekt
02
Heavy reliance on fossil fuels
Environmental impact of electricity
and competition production

03
Modernize infrastructure
Outdated electricity grid, transmission
04
Strategic location
Transit hub for energy resources
losses

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Reforms 06
Renewable energy
ISSUES
To increase transparency / efficiency Diversify energy sources and invests on
and attract foreign investors renewable energy projects

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PESTLE ANALYSIS
Political Economic Social

Technological Legal Environmental

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Political Economic Social Technological Legal Environmental

Industry / Government
Unstability Population Efficiency Non-renewable sources
business growth regulations

Laws on
Government Renewable
Living standard Cost-effectiveness foreign Emissions
policies sources
investment

Cost of
Employment
Regulation production / Cultural norms Reliability / Automation Waste disposal
laws
distribution

Reducing downtime /
Inflation Property laws Transmissions
Innovation

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POLITICAL

Unstability Relations Regulation Natural resources

International Corruption / Limitations on

Regional tensions
connects Competition renewable sources

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Economical
Fossil fuels Non-payment
Limitations on renewable Financial losses
sources

Capacity Inadequate investment

Outdated infrastructure / Limitations on development
inefficiencies

Competition Subsidies
State-owned companies Inefficiencies on government

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SOCİAL
Employment Efficiency
Descend Lower energy costs
unemployment

Affordability Safety
Struggiling with Accidents and safety
electricity bills hazards

Access Health impacts

Rural areas Air pollution, GHG

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TECHNOLOGICAL
Heavily fossil-fuel
based energy system Digital technologies in sector,
robust security protocols
Renewable
energy Cybersecurity

Outdated
infrastructure
Smart grid
Older power plants, non- Intelligent and responsive
upgrading transmission lines grid, more reliablity

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Legal
Lack of legal Intellectual property
framework protection
Protect consumer Protect the rights of
rights innovators, tech developers

Contract International
enforcement standards
Resolve disputes and enforce Trade agreements,
contracts for foreign investors safety standards

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ENVIRONMENTAL
GHG

Air pollution

Land use
Water scarcity

Waste management

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Thank you!
Do you have any questions?
Please, feel free 

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