Large investments required to restore distribution network in Azerbaijan

Oil&Gas Materials 6 December 2011 14:10 (UTC +04:00)

Azerbaijan, Baku, Dec 6 / Trend E.Ismayilov/

A large amount of funds are required for the reconstruction and modernisation of the Azerbaijani area of distribution networks, Vice-President of JSC Azerenergy (production and distribution of electricity in Azerbaijan) Marlen Askerov told Trend.

Mr Askerov noted that since the collapse of the Soviet Union, nearly 65 per cent of the networks and stations become obsolete both actual and ethically.

"In order to eliminate the dependence on our neighbours, we started to increase the power grid by building stations and attracting loans for these purposes," he said.

More funds are being attracted to restore the high-voltage transmission grids and in this direction JSC has been given a lot of the work currently underway
However at the same time, Mr Askerov noted that a difficult situation with distribution networks remains. "There is much to do in this area. Many of the networks were laid in 1970-80s and have become obsolete. A lot of money is required for the reconstruction work." he said.

There are more than 200 substations with capacities of 500, 330, 220 and 110 kilovolts, as well as six hydroelectric power plants and 13 thermoelectric stations on Azerenergy's books. The total generating capacity of Azerbaijan exceeds six thousand megawatts.

JSC was established in 1998 as a state-owned company and is wholly government-owned.