Unofficial transfer (c) Soyuzpravoinform LLC

LAW OF THE AZERBAIJAN REPUBLIC

of April 11, 2023 No. 858-VIQ

About power industry

This Law according to Item 11 of part I of article 94 of the Constitution of the Azerbaijan Republic governs the relations arising between subjects of power industry in connection with production, storage, transfer, distribution, supply, import, export and consumption of electrical energy, consumers and state bodies (structures) performing activities in the sector of power industry determines legal, economic and organizational basis of power industry.

Chapter 1. Basic provisions

Article 1. Basic concepts

1.1. The basic concepts used in this Law have the following values:

1.1.1. the active consumer - legal entities or physical persons which, along with electric power consumption, make up to 150 kW (including 150 kW) the electric power at the expense of renewable energy resources;

1.1.2. balancing - the actions and processes providing continuous balance between production, storage, import, export and electric power consumption according to quality indicators (restrictions on frequency, capacity and tension) with the operator of the transferring system of transfer;

1.1.3. the balancing electric power - the electric power used for elimination of the not balance of the electric power arising in case of accomplishment of the daily schedule of the production electric power consumption established by the operator of the transferring system;

1.1.4. responsibility of balancing - the obligation of subjects of the wholesale market of the electric power on balancing of production, storage, consumption and purchase and sale of the electric power according to the accepted schedules, and also their responsibility to the operator of the transferring system according to the financial liabilities arising in connection with regulation of not balance of the electric power;

1.1.5. the balancing group - the group created based on the contract between subjects of the wholesale market of the electric power for regulation of not balance of the electric power on which each participant bears responsibility for balancing according to the procedure, defined by this agreement;

1.1.6. the balancing market - system of the relations between subjects of the wholesale market in case of the decision the operator of the transferring system of the financial questions connected with balancing function, and also with not balance of the electric power;

1.1.7. rules of balancing - the rules governing the relations arising between subjects of the wholesale market of electrical energy in the balancing market and the market of support services;

1.1.8. the operator of the market - the legal entity created by the body (structure) determined by relevant organ of the executive authority for the purpose of the organization of activities of the centralized market of electrical energy;

1.1.9. renewable energy resources - the power sources which are constantly present at the environment or regularly arising, (hydropower, wind energy, solar energy, geothermal power, energy of biomass, wave energy of the seas and oceans, energy of inflow and outflow, energy of water flows, etc.);

1.1.10. power industry - the sector of energy industry including production, storage, transfer, distribution and electric power supply;

1.1.11. electric utility system - set of the power generation facilities combining production, storage, transfer and distribution of electrical energy in single engineering procedure by the central supervisory control;

1.1.12. power generation facilities - the power plants, substations, power lines used in production process, storages, transfers and electricity distributions, the buildings and constructions providing the central supervisory control;

1.1.13. subjects of power industry - the legal entities or physical persons which are engaged in production, storage, transfer, distribution and electric power supply;

1.1.14. the modes of electric utility system - set of the technical parameters characterizing production process, storages, transfers, distribution and electric power consumption and also condition of power generation facilities, including electroconstructions;

1.1.15. energy security - reliability of electricity supply, including technical safety;

1.1.16. reliability of electricity supply - capability of electric utility system continuously and steadily to supply consumers with the electric power according to the procedure, established by this Law;

1.1.17. the electric power producer (producer) - the subject of power industry performing production of electrical energy;

1.1.18. the supplier of electrical energy (supplier) - the subject of power industry supplying consumers with electrical energy;

1.1.19. the consumer of electrical energy (consumer) - the independent or dependent consumer buying electrical energy for own needs and also the residential or not residential customer;

1.1.20. power network - set of the electric constructions intended for transfer and distribution of electrical energy;

1.1.21. access to power networks - the right of users of the transferring or distribution networks (producers, suppliers, consumers of electricity, and also the operator of the transferring system and the operator of distributive system) to use of these networks on predefined conditions of non-admission of discrimination (taking into account requirements of article 11.6 of this Law) and transparency (in accordance with the terms of the agreement and regulated prices (rates)), and also obligations of operators of the transferring and distribution systems on providing this right;

1.1.22. not balance of the electric power - difference between the hourly limits of the daily schedule of production electric power consumption set by the operator of the transferring system and the actual hourly limits of production consumption;

1.1.23. electricity market - the wholesale market and the retail market of the electric power;

1.1.24. the wholesale market of electrical energy (wholesale market) - the system of the relations arising between subjects of the wholesale market in case of purchase and sale of electrical energy, rendering system and support services;

1.1.25. the retail market of electrical energy (retail market) - the system of the relations arising between subjects of the retail market by delivery of electrical energy to consumers;

1.1.26. subjects of the wholesale market of electrical energy are the electric power producers participating in the wholesale market of electrical energy, the operator of the transferring system, the operator of distributive system, suppliers, independent consumers and the operator of the market;

1.1.27. subjects of the retail market of electrical energy are the electric power producers participating in the retail market of electrical energy, the operator of the transferring system, the operator of distributive system, suppliers, operators of the closed distribution networks and consumers;

1.1.28. the centralized market of electrical energy - the system of the relations arising between subjects of the wholesale market of electrical energy when carrying out the electronic biddings of electrical energy through information system on short-term (spot biddings of electrical energy), medium-term (week, month) and long-term (quarter, year) the periods;

1.1.29. production of electricity - actions for transformation of all types of energy resources at power plants in electrical energy, and also coproduction of electrical and heat energy;

1.1.30. storage of electrical energy - activities in connection with acceptance of electrical energy from power network at the time of its production and accumulating by means of electric construction for subsequent use and transfer after certain period of time to power network;

1.1.31. transfer of electrical energy - giving of electrical energy on the transferring network in distribution network and to consumers (except for supplies);

1.1.32. distribution of electrical energy - giving of electrical energy to consumers on distribution network (except for supplies);

1.1.33. delivery of electrical energy - sale of electrical energy to consumers based on electric power supply agreements;

1.1.34. the daily schedule of production consumption of electrical energy - approved as the operator of the transferring system I will eat around hourly production consumption of electrical energy per every day according to the sale and purchase agreements of electrical energy signed between subjects of the wholesale market of electrical energy;

1.1.35. electric power spot biddings - the short-term bidding of the electric power with the modes for operational day and for the days ahead and hourly amounts;

1.1.36. electroconstructions - complex of the interconnected equipment and the related structures necessary for production, storages, transfers, distribution and consumption of electrical energy;

1.1.37. power plant - complex of the interconnected equipment and the related structures necessary for production of electricity from all types of energy resources, including renewable energy resources;

1.1.38. rules concerning the power supply network - the set of rules, regulating planning, development of electric utility system, including forecasting of capacities of production and storage, and also access to power supply networks and connection to power supply networks, planning of the modes of electric utility system, including the operational mode, and also the central supervisory control and supervisory control of distributive system of the operator, technical aspects of the relations between subjects of power industry in connection with safety of transaction, and also between these subjects and consumers, and approved by the body (structure) determined by relevant organ of the executive authority;

1.1.39. operational day - the present day in which the operator of the transferring system performs function of the central supervisory control for execution of the purchase and sale agreements of electrical energy signed between subjects of the wholesale market of electrical energy;

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