SMALL HPS TO GENERATE 10-15% OF COUNTRIES ELECTRICITY
By Ara Martirosian

AZG Armenian Daily
03/11/2006

During the last 3 years 17 small hydro power stations (HPS) were built
in Armenia as against 18 HPSs in 2004, Robert Nazarian, head of the
Commission Regulating Public Services, said at a seminar dedicated
to issues of financing projects for construction of small HPSs. He
also said that by 2010 50 more small HPSs will be built making their
total number 97. The small HPS will generate 10-15% of the countries
electricity in 4 years.

A department chief at the Commission, Abgar Budaghian, presented
in details the tendencies of development in the sphere of small
HPSs. He informed that currently the small HPSs account for 2-2.5%
of electricity. Most of the 51 HPSs that are being built today are
located on, irrigation systems and drinking water sluices. In 2010
their combined power will amount to 175 megawatt and 644 million
kilowatt-hour a year. To reach this index 47 million drams is needed
to be invested in the sphere.

Electricity tariff during 15 years for the HPSs built on natural
currents will amount to 4.5 cents for 1 kilowatt-hour (without VAT);
for the HPSs built on irrigation systems it will be 3 cents and 2
cents for those on drinking water sluices. This means that risks for
investors are reduced to minimum to attract finances for development
of the sphere.

Tamar Babayan, representative of Armenia’s Regenerative Energetics
Fund, presented the small HPSs loan mechanisms. She said that the
World Bank, International Development Association and the European
Bank for Reconstruction and Development participate in financing
of the project. The minimal amount of the loans is $30 thousand and
maximal is $2 million. Loans are available both in USD and AMD. Money
needed for construction of a small HPS is $500 thousand. The loan
can be granted on terms of increasing the amount of generated energy,
raising stations’ power to 10 megawatt etc.