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Interactive Workshop on the Implementation of Power Market Rules

Updated: Apr 6


The Brussels Energy Club has participated in the online Workshop on the Implementation of Power Market Rules during Phase II and Phase III based on the New Electricity Law of Azerbaijan, which took place on 10-12 December in Baku, Azerbaijan.


Concept Note:


This capacity-building event aimed to provide a simulation of the fundamental power trading elements and the implementation of new Market Rules for Phases II and III as envisaged in the Electricity Law of the Republic of Azerbaijan. In particular, this interactive workshop enhanced participants' capacity to understand the key rules and procedures of the new power market; the rights and responsibilities of key power sector stakeholders during the single buyer model starting from July 2025; and the gradual liberalisation of the market during Phase III starting from July 2028.


The training offered hands-on experience in the following procedures to be carried out in Azerbaijan's electricity wholesale market during Phase II:


  • Registration of market players;

  • Settlement;

  • Transparency and information sharing;

  • Contract registration;

  • Trade, settlement, payments, etc.


And Phase III:


  • Wholesale market trade (including Over-the-counter (OTC) and Centralised markets);

  • Activities of the Balancing Responsible Party (BRP) and the Balancing Services Provider (BSP);

  • Procurement of Ancillary Services;

  • Computation of imbalances;

  • Imbalances settlement;

  • Choosing a supplier, etc.


More specifically, the training workshop supported the implementation of the new Electricity Law of the Republic of Azerbaijan and explained the next steps that the Azerbaijani stakeholders should take to ensure smooth implementation and continued development of the Market Rules, taking into account the deployment of renewable energy, demand response, and the potential role of aggregators in the future power market. The workshop also provided steps needed to increase cross-border power trade and ensure full-fledged competition between generators and suppliers.


Overall objectives:


The workshop aimed to support the Ministry of Energy of Azerbaijan and other related stakeholders in the implementation of the power trade reform as mandated by the new Electricity Law of the Republic of Azerbaijan. This objective was delivered through interactive training, which combined expert presentations, market computation based on practical examples, and interactive discussions with the participants.


Specific objectives:


  1. To enhance participants’ capacity to understand the key responsibilities and procedures for the Market Operator and market participants in Azerbaijan's electricity wholesale market during Phase II.

  2. To simulate power trading, computation of imbalances, and the procurement of ancillary services during Phase III.

  3. To solve practical examples of concluding the best bilateral contracts between a supplier and generators, and choosing the cheapest suppliers by a free consumer.


Format:


To ensure maximum participation of local stakeholders and experts, the interactive workshop was implemented in the form of an online event. The workshop was recorded and submitted to the Ministry of Energy for future training purposes for new staff members and experts who could not join the online event. Considering the participants’ workload related to their current responsibilities, and to provide flexibility, the workshop was delivered over three consecutive afternoons, running from 14:00 to 18:00 (Baku time) on 10, 11, and 12 December 2024.







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