Azerbaijan, Baku, July 5 /Trend A.Akhundov/
The State Agency on Alternative and Renewable Energy Sources of Azerbaijan has made a decision on the sources of funding of projects through external borrowings.
As the agency's representative, Jamil Melikov told Trend the agency is currently carrying out work on the preparation of a feasibility study of projects in the development of renewable energy sources in the country jointly with the German development bank KfW and Asian Development Bank (ADB).
"The volume of credits that will be attracted from these financial institutions will be determined after the feasibility study which is expected by the end of 2014," Melikov said.
KfW is ready to allocate 130 million euros to Azerbaijan to create the Pirekeshkyul aircraft fleet. According to the State Agency on Alternative and Renewable Energy Sources, the cost of the project is estimated at 165 million manats.
The aim of this project is to increase the specific weight of renewable energy sources in the total electricity production volume in the country and to ensure the continuous and efficient use of resources.
In turn, the Asian Development Bank is ready to allocate $40 million to Azerbaijan. The initiative is directed towards the assistance for the development of renewable energy sources in Azerbaijan through the implementation of two pilot biomass processing projects with a total capacity of 16 megawatts for efficient electricity provision and heat supply for the Oguz and Agjabedi regions of the country.
The project provides for the construction of two power plants in the Oguz and Agjabedi regions, the establishment of electricity and heat supply systems, as well as the management and control of the implementation of the project including consultancy services on monitoring the project and assurances of compliance with accountability.
In recent years, the development of alternative energy has become a major direction of development in Azerbaijan. In particular, at present Azerbaijan is working on a programme to develop alternative and renewable energy sources. Realization of the program will enable increasing the share of alternative and renewable energy sources in the country to 20 per cent from the current level which is below one per cent.
The official exchange rate on July 5 is 0.7844 AZN / USD.