Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

The Japanese company Tepsco and Finnish company Enprima
provide advisory services to this project. Now the process of
election of lead contractor proceeds. It is considered to finish
all construction works by the project in 2009. The execution of
this project will play the main role at the power maintenance
and strengthening of power security of Baku and of the entire
Absheron region.
Participation of private business in power generation and distribution
is permitted by law, and electricity generated by private
producers may be delivered to consumers without any restrictions.
Fuel is supplied to private producers may be delivered on the same
terms as to state owned power stations.
The Azerbaijani government’s priorities in respect of projects aimed
at improvement of energy supply to households and industry are as
follows:
• construction of new combined cycle unit (780 mw) at janub
power plant;
• construction of new medium-sized generating stations (100 mw)
by private investors. (intended to improve service to consumers,
promote competition and enhance the sustainability of the
system);
• construction of small wind farms and hydropower stations. The
expert opinion is that they may be very efficient. private
investments are welcome;
• construction of new hydropower stations of over 500 mw
capacity on kura river and 25-mw fuzuli hpp on mil irrigation
channel;
• introduction to the azerbaijani market (or domestic production) of
the energy efficiency equipment and technology.
Private capital in the electricity sector is encouraged by legislation
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