President Ilham Aliyev has signed a decree on the subsidization of payments for the connection of industrial and agricultural construction facilities to the electricity grid.
According to the "Operative Information Center-OMM", the decree approves the "Rules for the subsidization of payments for the connection of industrial and agricultural construction facilities to the electricity grid."
Under these new regulations, the state budget will cover 50% of the connection fees set by the Tariff (Price) Council for eligible industrial and agricultural projects. This subsidy applies only to future connections and is not retroactive for facilities already connected to the grid.
The Cabinet of Ministers has been tasked with ensuring that the necessary funds for these subsidies are allocated in the state budget drafts for the 2027–2030 period. The Ministry of Economy is responsible for organizing the subsidy process and implementing the necessary measures to fulfill the decree's requirements.
The decree will come into effect on January 1, 2027, and will remain valid until December 31, 2030. Subsidies will be granted based on applications submitted by entrepreneurs.
To qualify for the subsidy, the following conditions must be met:
- For legal entities: The state's share in the authorized capital must be less than 30%.
- The entrepreneur must not be classified as a high-risk taxpayer under the Tax Code.
- The entrepreneur must have no overdue obligations regarding taxes and other mandatory payments.
- No discrepancies must be found in the submitted documentation.
The subsidy applies to a wide range of industrial and agricultural sectors, including:
- Crop production, livestock, and hunting
- Fishing and fish farming
- Food, beverage, and tobacco production
- Textile, clothing, leather, and footwear manufacturing
- Wood processing and paper production
- Chemical and pharmaceutical manufacturing
- Rubber, plastic, and non-metal mineral product manufacturing
- Metallurgy and metal product manufacturing
- Computer, electronic, optical, and electrical equipment manufacturing
- Machinery, automotive, and furniture production
This initiative is part of Azerbaijan's broader strategy to stimulate economic growth, encourage industrialization, and improve the business environment by reducing operational costs for new production facilities.
