Azerbaijan defines lenders for alternative energy projects

Source: AzerNews

Azerbaijan's State Agency for Alternative and Renewable Energy Sources has determined the sources of funding for projects through external borrowing.

According to the Agency's Deputy Director Jamil Melikov, at present it is working jointly with the German development bank KfW and the Asian Development Bank (ADB) on the preparation of a feasibility study for projects in the field of developing renewable energy sources in the country.

"The volume of loans to be raised from these financial institutions will be determined after the preparation of the feasibility study, which is expected by the end of 2014," Melikov said.

KfW is ready to allocate for Azerbaijan some 130 million euros to create Pirekeshkul airpark. According to the Agency, the cost of the project is estimated at 165 million manats.

The project aims to increase the share of renewable energy in the domestic electricity production and ensure the continued efficient use of resources.

ADB is ready to allocate $40 million to Azerbaijan. The initiative aims to promote the development of renewable energy sources in Azerbaijan through the implementation of two pilot projects on biomass processing facilities with total capacity of 16 megawatts to efficiently supply Azerbaijan's Oguz and Agjabadi regions with electricity and heat.

The project envisions construction of two power plants in Oguz and Agjabadi, creation of electricity and heating systems, as well as the management and control over the implementation of the project, including consultancy services to monitor the project.

Furthermore, the International Finance Corporation, a member of the World Bank Group, has approved the first loan for Azerbaijan to finance renewable energy and energy efficiency projects. With a total project cost of $15 million, IFC will provide $14 million of its own money, and $1 million from Canada Climate Change Program.

Alternative energy has become a major focus of development in Azerbaijan in recent years.

The State Agency, established in 2009, plans to double the share of renewable energy sources in Azerbaijan to 20 percent by 2020.