Armenia holds potential to construct small hydropower plants

PanARMENIAN.Net - The hydropower engineering is rapidly developing in Armenia thanks to the correct policy carried out by the government, according to the chairperson of the Union of Small Hydropower Plants.

Armenia is a country with poor natural resources but developing renewable energy industry, Armenia can export electricity.

Presently, small hydropower plants generate 331 mln kwh, what makes 5% of the total amount of electricity processed in the country.

Ameriabank CJSC has approved 12 applications for small hydropower plants financing to the amount of $20.2mln. The process was launched in November 2009. $4.7 mln was already allocated. Besides, $25 mln will be distributed during the current year, with $14 mln Cascade Bank assigned for renewable energy sector.

Jermuk-2 hydropower station will be put in commission in December 2010. This project is the first hydropower station financed by Ameriabank from $15mln loan funds provided by the International Financial Corporation (IFC).

Jermuk-2 hydropower station is constructed in Vayots Dzor region of Armenia. The total cost of the project amounts to $3.15mln, while $2mln of it will be provided by Ameriabank. The initial capacity of the station is 2.3 megawatts, while the annual electricity production is expected to total 10.26 mln kwh.

The hydropower station’s financing has started since September 2009. Meanwhile, the project financing was entirely included in the IFC program on crediting of renewable energy in February 2010. Currently, the major part of construction works is completed. Besides, high-quality hydro equipment is ordered from the Czech Republic.

The advantage of hydropower plants is that they are harmless for the ecology. Being a priority for Armenia, hydropower plants construction can help Armenia be less dependent on imported energy resources.