EBRD FINANCES HYDROPOWER PLANTS IN ARMENIA
01/02/2013 04:12 (00:10 minutes ago)
The FINANCIAL -- The European Bank for Reconstruction and Development
(EBRD) is supporting investment in the generation of renewable energy
in Armenia with a US$ 25 million loan to International Energy
Corporation (IEC) to finance the rehabilitation of the seven
hydropower plants of the Sevan-Hrazdan Cascade.
Located along the Hrazdan river and running about 70km from Lake Sevan
to the capital Yerevan, the Sevan-Hrazdan Cascade is an essential
component in Armenia's electricity network. With a total installed
capacity of 565 MW, it provides 10 per cent of the country's annual
electricity production and its water channels supply enough water to
irrigate 70 per cent of Armenia's agricultural land.
The EBRD facility will provide essential support to the overall
rehabilitation programme of the cascade which was built between 1936
and 1961 and has had almost no further investment since. The
rehabilitation of the hydropower plants HPPs will raise the technical
standards in line with best international practices and restore the
lost capacity while avoiding further deterioration. As the European
Bank for Reconstruction and Development said, this will ensure the
continued stability and security of the country's electricity supply
while improving overall generation efficiency and carbon emissions.
IEC, established in 2003, is majority owned by OJSC RusHydro, one of
the largest hydropower companies in the world, and the owner of more
than 35 GW of generating capacity in Russia.
"We are very happy to be working with IEC on this important project
while also building on our long relationship with RusHydro. Both
companies bring a wealth of experience in the hydropower sector which
we are sure will make the project a success. It will be implemented
using the latest technologies which will not only increase the
production of clean electricity in Armenia but will also significantly
reduce the volume of water currently lost through dilapidated
channels", said Nandita Parshad, Director of Power and Energy for the
EBRD.
Konstantin Bessmertny, a member of RusHydro's management board,
commented: "We have a long-standing and productive relationship with
the EBRD. I am convinced that the Bank's support will be instrumental
in the Sevan-Hrazdan Cascade modernisation. This long-term financing
perfectly meets IEC's needs and what is very important is that the
project is highly cost effective and so is quite reasonable and
bearable in terms of tariff regulation in Armenia."
The EBRD has been active in Armenia since the country's independence
and to date has invested over ~@613 million. Investing in green energy
generation is one of the EBRD's key priorities in Armenia. In 2012,
the EBRD signed 15 projects worth a total of ~@94 million in Armenia.
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