Document from CIS Legislation database © 2003-2023 SojuzPravoInform LLC


On December 28, 1999 No. 784-IQ

About power and thermal plants

(as amended on 03-05-2019)

Chapter I. General provisions

Article 1. Scope of application and purpose of the Law

This Law establishes according to the legislation of the Azerbaijan Republic the legal basis of designing, construction, operation and use of the permanent installations (further - power plants) developing electrical and heat energy. The law considers the power production plants which are placed in single (indivisible) space and being in technology communication as single power plant.

Independent power plants - economically and organizationally completely independent legal entities not subordinated to single state electric utility system.

Purpose of this Law consists in legal support:

productions at power plants, including independent power plants, electrical and heat energy;

production efficiency of electrical and heat energy together with industrial processes;

cooperation between producers, suppliers and distributors of electrical and heat energy;

restrictions of negative impact on safety, health of the population and environment.

Article 2. The rights on construction, reconstruction and operation of power and thermal plants

According to provisions of this Law any physical person and legal entity has the right, without limiting the rights of any third party (any physical person and legal entity), using the real estate or such property given it by the owner for use for this purpose belonging to it to build power plant, to reconstruct and exploit her.

Chapter II. Small power plants and power plants of industrial type

Article 3. Small power plants

1. As small power plants the stations which are answering to the conditions established below and having electric force in the following limits are considered:

a) the solar power stations making electrical and heat energy;

b) the windfarms capacity from 10 to 100 kilowatts placed from real estate of any third party at distance according to the relevant standards and standards;

c) the hydroelectric power stations capacity from 50 kilowatts to 10.000 kilowatts placed on stable water current and providing immediate return of the used water to the bed;

d) the power plants making electrical and heat energy by means of gas or other type of fuel which 80 percent undertake from biological weight, excepting natural firewood;

e) the emergency power plants using fuel making the electric power in case of breaks in general electric utility service. The term of work of these stations is limited to the unexpected breaks arising in general power supply and time necessary for repair.

2. Persons having special permission for occupation energy activities do not need the special construction license and operation of small power plants and the procedure of the tender in case of providing the following conditions:

a) in case of construction and operation of small power plants and the structures connected to them with use of real estate of legal entities and physical persons or their associations, or the property transferred to their use and energy use in this territory (property);

b) in case of production of electrical and heat energy, as a rule, with use of real estate of legal entity and physical person or their associations, or the property transferred to their use and providing the third party with this energy according to requirements, stipulated in Article 6;

c) in case of construction and operation of power plants and their components, transfer and distribution lines, storage locations of energy materials according to provisions of this Law.

The state can issue the grant for construction of the stations working at the basis of the recovered energy sources. Besides, on receipt of the energy made at these stations the guarantee without any restrictions is given.

In the cases established by the legislation the relevant organ of the executive authority can prohibit construction of small power plants, check their activities, is temporary suspend or stop it.

Article 4. Power plants of industrial type

1. All power plants, excepting the power plants specified in article 3 of this Law are considered as power plants of industrial type. Conditions, stipulated in Item 2 articles 3 of this Law for small power plants, equally extend also to power plants of industrial type.

2. Activities for construction and operation of power plants of industrial type are performed only based on special permission of relevant organ of the executive authority.

3. As construction of power plant are accepted by this Law:

a) increase in the production capacity of power plants provided in the project;

b) change of the type of the energy carriers providing activities of power plants provided in the project;

c) recovery of activities of the power plants which were not working more than 2 years in a row.

4. If production of electrical and heat energy is component of the main industrial productive activity of the company, Item 2 of this Article is applied. In this case production of electrical and heat energy is considered within the permission got for core activity of this company. This condition belongs also:

a) to transportation and distribution of electrical and heat energy within industrial enterprise as a part of which it is used;

b) to energy supply to the consumers who do not have communication with networks of general electro-and heat supplies, and being at distance of 10.000 meters from the parcel of land which is taken away for them.

Article 5. Bases for construction and operation of power plants of industrial type

1. The relevant organ of the executive authority issues the special permission for construction of new power plant of industrial type in case of restriction of opportunities of producers and distributors for giving to customers and consumers of electrical and heat energy:

if the power plant which will be constructed provides satisfaction of the current and perspective requirements of customers and consumers according to standards, qualitatively, in necessary quantity and timely;

if the prices of the energy offered by power plant are the low prices offered by other supply agents;

if energy prices, made by power plant, are above current prices only in connection with the problem resolution of safety, environmental protection, improving actions, etc.

2. Special permission is issued by relevant organ of the executive authority to the persons having the organizational support which is required for construction and operation of power plant of industrial type, the equipment, having qualified personal preparation.

3. The special permission for construction and operation of power plants it is issued by relevant organ of the executive authority on the basis of the approved rules.

Article 6. Transportation and electricity distribution, made at power plants

1. In the procedure established by the legislation person having the permission to operate of power plant can give the electric power on industrial enterprises and to other consumers if transfer lines are its real estate or property transferred to it to use.


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