The European Bank for Reconstruction and Development (EBRD) will financially assist the rehabilitation of seven hydropower plants in the Sevan-Hrazdan Cascade, Armenia.
Located along the Hrazdan River, the Sevan-Hrazdan Cascade comprises a total installed capacity of 565MW and contributes to 10% of the country’s annual electricity production.
EBRD will extend a $25m loan to International Energy Corporation (IEC) for the rehabilitation work, which includes a technical upgradation of compliance with international practices.
Rehabilitation will also restore lost capacity at the facilities while avoiding further deterioration, thereby improving overall generation efficiency and ensuring a stable electricity supply in Armenia.
Russian renewable energy producer RusHydro owns a majority stake in IEC.
RusHydro management board member Konstantin Bessmertny stated that the long-term financing will meet IEC’s need as the project is highly cost effective.
Commenting on the project, EBRD Power and Energy director Nandita Parshad said, "It will be implemented using the latest technologies which will not only increase the production of clean electricity in Armenia but will also significantly reduce the volume of water currently lost through dilapidated channels.".