Azerbaijan, Baku, Oct. 8 /Trend, I.Khalilova/
German Development Bank KfW has begun to prepare tender documents to involve a consultant to develop a feasibility study for renewable energy development project in Azerbaijan, head of the KfW Baku office Natig Abdullayev told Trend on Saturday.
"We are actively working with the State Agency for Use of Alternative and Renewable Energy Sources at the Ministry of Industry and Energy," said Abdullayev.
German development bank KfW is ready to allocate 130 million euros to Azerbaijan for the development of renewable energy.
The German bank received approval from the Azerbaijani government to grant state guarantees to finance projects in this regard, but the offer to fund them through local banks was not accepted.
Abdullayev said KfW agreed to finance the project directly through the government of the country, on behalf of which the State Agency for the Use of Alternative and Renewable Energy Sources acted.
"The consultant of the bank, involved for three months, conducted a preliminary assessment of the situation in the country with the development of renewable energy sources, based on which, a decision was made to direct KfW funds for the creation of one wind park," said Abdullayev.
The implementation of the project can begin no earlier than next year, since a consultant is expected to be involved to prepare a feasibility study for the project. Presumably, a tender will be announced in the winter.
According to the preliminary studies, up to 100 alternative electricity sources are planned to be constructed in Azerbaijan over the next five years. Presently, share of alternative electricity sources is less than one percent, which fell on small hydropower plants.
Today, European and other developed countries agreed on an annual increase of share of the alternative energy up to 10-15 percent of the total electricity production.
Today, this field already has enough support at the state level, Azerbaijan has a great potential for development of this type of energy
At present, the total electric power generation in Azerbaijan is roughly 6,000 megawatts, and total capacity of power plants under the construction will comprise about 1,500 megawatts