The World Bank (WB) has begun developing a project to expand the use of renewable energy sources in Azerbaijan (AZURE), with a preliminary estimate of a total cost of $250 million, Report informs referring to the WB.
The project’s estimated appraisal date is July 16, and approval by the WB Board of Directors is expected on October 31.
“Azerenerji has developed a two-phased approach to integrate up to 1 GW of solar and wind energy by 2027 to meet the Government of Azerbaijan’s 1.9 GW target.
The first phase will finance the transmission infrastructure to integrate the Banka (315 MWac) [in Neftchala district] and Bilasuvar (445 MWac) Solar Power Plants to the grid, totaling 760 MWac. In parallel, Azerenerji will enhance system operation and control to integrate planned variable renewable energy (VRE) over the next 10 years. This includes investments in SCADA upgrades, control systems, and battery energy storage,” reads the report.
“The second phase, to be prepared sequentially in a parallel project, will focus on reinforcement of the 330 kV network and grid-connection of 240 MW Gobustan wind power plant. The proposed project will finance Phase 1 and comprise investments as presented below. Component 1: Renewable energy transmission infrastructure. (a) sub-component 1.1 HV substations will finance the construction of a new 500/330/10 kV Navahi substation with a capacity of 2x500 MVA; expansion of the 500 kV bay at Absheron substation, and the expansion of a 500 kV bay at Azerbaijan TPP substation. (b) sub-component 1.2 Transmission lines will finance the construction of SPP 500 kV 65 km OHL connecting the Navahi substation to the existing Absheron substation; 500 kV 235 km single-circuit OHL connecting Azerbaijan TPP with Navahi substation; 330 kV 90 km double-circuit OHL from Bilasuvar SPP to Navahi substation; and 330 kV 80 km double-circuit OHL from Banka to Navahi substation.”
“Component 2: Enhancement of system operation and control for VRE integration. (a) Construction of 50 MW/25 MWh BESS and a management module for BESS/SCADA control; (b) Upgrading SCADA at central control room, debugging and purchasing of new software; (c) Creation of a monitoring system for all power plants (application of WAMS with PMU characteristics devices); (d) Renewal and upgrading of control system equipment and adjustment of frequency regulation parameters to withstand VRE volatility at up to six power plants.
Component 3: Project implementation support. It will cover capacity building and trainings on RE scale-up and regulation for the staff of key stakeholders as well as implementation support, technical studies and consultancy services.
Component 4: Contingent emergency response component (CERC). It will allow for rapid reallocation of proceeds of uncommitted financing in the event of an eligible crisis or emergency,” the bank noted.