KfW Expects Approval of Azerbaijani Government to Begin Feasibility Study for Construction of Hydroelectric Power Station

Oil&Gas Materials 4 April 2008 12:29 (UTC +04:00)

Azerbaijan, Baku, 4 April/ corr. Trend I. Khalilova/ The consultant on hydro-power engineering of Germany development bank of KfW has introduced to the Azerbaijani government the results of the studies on the construction of hydro-electric power stations in the districts of Azerbaijan, said Natig Adullayev, the Head of KfW Baku Office.

The preliminary studies were conducted to determine the possibility of their construction in Shaki-Zagatala region. "The consultant deems it possible to construct a hydro-electric power station in this region, and there is a need for a detailed feasibility study to establish the co-efficient of operation of the station during the whole year," said Abdullayeva.

According to Abdullayeva, at present, the consultant expects the Azerbaijani government to approve the project. Some 20 hydroelectric power stations are expected to be built in the Azerbaijani regions within the project.

The preliminary feasibility study of the project developed by Azerenerji JSC was introduced to the Bank. It included the construction of a hydro-electric power station with a capacity of 1.5-2 mWt in Zagatala and Beylagan districts. Each hydro-electric power station with a capacity of 1 mWt costs $1mln.

The German bank plans to construct pilot stations near the villages in order to assist the population during busy periods.

It will be the first KfW project in the field of renewable electricity resources. Although earlier the Bank expressed its wish to finance the alternative electricity generation in Azerbaijan, lack of legislation to join the Azerenerji network prevented this. However, there is no legislation act enabling Azerenerji to obtain electricity from the private power stations.

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