Energy Security for Energy-Exporting Countries: The Case of Azerbaijan

Abstract

This paper highlights the challenges and examines the strategies developed specifically for energy-exporting countries, emphasizing the role of governments in improving energy security. The concept of energy security can be defined from the perspective of both importers and exporters, although in most cases, it is considered from the standpoint of energy importers. This study, however, indicates that as new energy-related pressures arise and the energy sector grows more complex and sophisticated, resource-rich economies also face energy security challenges. In contrast to that in energy-importing countries, energy security in resource-rich economies depends on external factors, including environmental programs and obligations, political pressure, international sanctions, the position and bargaining power of energy-importing countries, all of which affect prices and supply dynamics. As exemplified by Azerbaijan, diversification of energy sources can put energy security at serious risk, especially during peak summer and winter loads. Furthermore, the provision of natural gas to households across the country has caused a national energy crisis characterized by an imbalance in energy supply and demand.