Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

88 DOING BUSINESS IN AZERBAIJAN
A medium and long-term strategy for the power sector was
prepared recently. A Decree of the President dated October 21,
2004 mandating a new “State Programme on usage of alternative
energy sources” gave additional impetus to the industry. In parallel
with this, the “State Programme on development of Fuel-energy
complex of Azerbaijan Republic in 2004-2015” was prepared, and
approved by Head of State.
A loan from the Japanese International Cooperation Bank in 2002
facilitated the construction of an oil-associate gas generating plant
with capacity of 400 megawatt. An agreement to build another
similar plant also reached. The construction of another off-gas
processing plant with a capacity of 517 MW by Siemens in Sumgayit
has been finished. The goal is to increase energy generation
and to achieve better environmental protection. It is also expected
that finance for 330-220 KV electric transmission lines designed to
link the four national power systems of Azerbaijan, Russia, Iran and
Georgia will be provided by international sources. A project financed
by KfW bank of Germany, aimed at replacement of some of
equipment (transformers, switches etc.) in high-voltage (330-220
and 110 KV) sub-stations of the power supply system is underway.
The construction of new station with the capacity of 300 MW
produced by Finnish company “Wartsila” at Sangachal has been
considered rational and in February 2007 preparation works of the
construction area began. The difference of this station from others
is that here will be used gas fuel as well as black oil fuel. This
station will play a big role at strengthening of Baku and Absheron
peninsula power security in future. The works on the project was
finished at the end of 2008.
The construction of second power unit with the capacity of 400
MW at “Shimal” power station in Shuvalan is planned.