The purpose of this study was to determine the degree of influence of alternative options for generating electricity by households on the level of energy independence of countries. The research methodology was based on the use of correlation–regression analysis, as well as adapted non-linear optimization by choosing one of three scenarios for electricity generation by households for 20 countries. Regression analysis showed the dependence of a country’s energy security on households’ energy independence. It is determined that an increase in households’ energy production helps to reduce the level of energy dependence in developed countries. However, for developing countries, there is no such interrelation. The solution of the formulated problem of nonlinear optimization for the studied countries has demonstrated that the criterion of energy dependence is superior to the criterion of a country’s energy security. In the long term, this study can be deepened in the direction of assessing the effectiveness of household investment in electricity generation projects. The proposed results can be used by responsible persons in the field of economy and energy in order to determine the position of various policies, and use strategic levers and indicators that ensure an effective response to energy security challenges in the regional and global markets.

The objective of the article was to examine the level of diversification of the energy balance and energy export demand, as well as its impacts on economic growth to ensure energy security in Azerbaijan. Forthe research, the Risk Energy Export Demand Index and its four sub-indexes, i.e.,1) export dependence, were used; 2) risk of monopsonium; (3) the risk of transaction costs; 4) Comparative quantitative assessment of the economic importance of different types of energy in the country's energy exports. The Herfindahl-Hirschman index and the Shannon-Wiener index were used for the assessment of the diversification and concentration rate. The OLS method, the ADF test and cointegration were used to assess the relationship between indicators. It is concluded that the share ofenergy obtained from renewable sources in the country's energy balance is very low (about 3%), and the energy obtained from these sources is mainly used for electricity production. Since an essential part of the country's energy balance is in hydrocarbon reserves, the level of diversification is low.