Azerbaijan, Baku, August 18 / Trend , I.Khalilova /
The German KfW Development Bank made new proposals to the Government of Azerbaijan on financing projects in renewable energy, the head of the KfW Baku office Natik Abdullayev said on August 18.
"The bank stands ready to provide up to €100 million, and we are ready to finance any projects in this regard, like construction of wind power plants, and use of solar energy and other opportunities," said Abdullayev.
According to him, in Azerbaijan also there are some private companies that intend to attract funds for the construction of alternative energy sources.
"KfW can not work with them, because they expect to receive only two or three millions euros - said Abdullayev. - But we want to provide much greater amount that can be distributed by the government for construction of several such stations."
He said that notable is the fact that KfW is ready to provide mitigated loans for the renewable energy sources. Today, there are various programs on alternative energy sources, which are financed by European funds.
"Attracting their funds, KfW can provide mixed loans, which are much cheaper than commercial loans on the international capital markets," said the head of the Baku office.
Formerly, KfW has already conducted studies within the project on construction of 20 hydroelectric power plants in the regions of Azerbaijan. According to feasibility study of the project, it was intended to construct hydroelectric power stations with capacity of 1.5-2 megawatts in Zakatala and Beylagan regions. The cost of one hydroelectric power station with capacity of one megawatt was estimated at around $1 million.
Currently, the reserve power capacity in Azerbaijan is more than 5,000 megawatts, and the total capacity of power plants being under construction will be about 1,500 megawatts.
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