Cascade Credit Small Scale Hydro Bundled Project in Armenia

Cascade Credit Small Scale Hydro Bundled Project in Armenia

• Hndzorut river, Tavush marz, RA
• Ayri river, Syunik marz, RA
• Artashat water channel, Aygezard village, Ararat marz, RA
• Agstev river, Diligen city, Tavush marz, RA
• Kharachoban river, Lernapat village, Lori marz, RA
• Tandzut river, Vahagni village, Lori marz, RA
• Chanagchi river, Debet village, Lori marz, RA
• Adjidadg-Gehi water pipe, Kapan vill., Syunik marz, RA
• Bovadzor and Stepanavan villages, Lori marz, RA
• Vorotan river, Uyts village, Syunik marz, RA

Local Participant: (i) Cascade Credit; (ii) Atlas Energo LLC; (iii) Zorakar CJSC; (iv) Bitlis Men LLC; (v) Elenex LLC; (vi) Lernapati Kantexh LLC; (vii) Apahov Taniq LLC; (viii) Mavr LLC; (ix) Ler LLC; (x) Hosq LLC; (xi) Syunik LLC

Other Parties: EBRD (United Kingdom)

AMS-I.D.ver.11 - Grid connected renewable electricity generation
ACM0002 - Consolidated baseline methodology for grid-connected electricity generation from renewable sources

ICF International

N/A

The purpose of the project is to install and operate ten mini hydro power stations (six run-of- river plants and three plants constructed on artificial water flows) each with electric capacity below 3,6 MW for generation of renewable energy and to bundle them in one CDM project.

The total capacity of the ten power plants is 14,839 MW and the estimated average annual electric generation of the ten mini-hydro plants is 69,459 MWh.

All ten mini hydropower plants receive funding and consulting services from Cascade Credit, a Closed Joint Stock Company located in Armenia which acts as the project proponent and provider of channelled funding. Cascade Credit in turn receives a loan from the European Bank for Reconstruction and Development (EBRD, USD 7 million), a loan from the World Bank (USD 5 million) and contributes USD 3 million of its own equity. The purpose of bundling the ten project activities is to reduce transaction costs and documentation preparation costs for each of the small scale power plants.

All ten mini hydro power plants belong to the same type (Type I, renewable energy project), same category (D. Electricity generation for a system) and same technology (hydro electric generation). The electricity will be supplied to one single grid, the national grid of Armenia.

The development of this bundled project contributes to a total emission reduction of 257,937 tCO₂e over a ten years of crediting period from April 2006 to March 2016, by offsetting more carbon-intensive electricity production from the Armenian electric grid.

The project will contribute to sustainable development of Armenia via:

• Diversification of electricity generation sources and decrease of dependence on imported natural gas;
• Utilization of hydro and other renewable energy sources;
• Increase of employment opportunities to local people both during construction and operation of the project in the area where the project is located.

The project is undergoing validation performed by SGS United Kingdom Ltd. At the same time the project document has been submitted to the Designated National Authority for the CDM in Armenia for approval.