Eghvard-2 Small Hydropower Project in Armenia

Fichtner GmbH & Co. KG in co-operation with the Armenian Office of EC "Technical Assistance to Armenia, Azerbaijan, Georgia and Moldova with respect to their Global Climate Change Commitments" Regional Project.

According to the agreement signed between the project participants, a part (less than 40%) of CERs to be generated by the project will be transferred to Fichtner Carbon Management GmbH; whereas the rest share of CERs is negotiable.

The overall objective of the project is to meet the increasing national demand for power by generating clean renewable energy and to sell it to the Electric Network of Armenia CJSC through a power purchase agreement contract with duration of 15 years.

The proposed project aims to install and operate a small-scale hydropower plant with a total capacity of 9,31 MW on the spillway of Arzni-Shamiram irrigation canal in the Aragatsotn district of the Republic of Armenia. The project also aimed to register the Eghvard-2 SHPP under the CDM.

The Eghvard-2 small hydropower project uses hydropower technology to convert the potential energy available in the channel water flow into mechanical energy and then to electricity. Two Pelton type turbines, standard for this head and commonly used worldwide will be applied. The annual generation of 18,21 GWh of electrical energy will directly reduce the GHG emissions resulting from the use of fossil fuels at thermal power plants that are currently in operation in Armenia.

The basic project idea is to use the available head of 361,0 m for power generation instead of energy dissipation by means of a spillway. The Eghvard-2 SHPP could produce power and energy during the season, when the water is planned to be spilled and dissipated at the spillway.

Technical parameters of the plant are as follows:

• The design discharge - 3,2 m³/s;
• Annual flow through HPP - 22,45 mln m³;
• Head losses at design discharge - 13,91m;
• Installed capacity - 9,31 MW;
• Annual electricity generation - 18,21 GWh.

The following outcomes are expected in case of project materialization:

• Generation of permanent and temporary employment opportunities;
• Professional and intellectual capacity building;
• Contribution to energy security;
• Reduction of harmful emissions;
• No deforestation and degradation of natural resources;
• Attraction of capital and contribution to the economic development of the local community;
• Contribution to reliability of energy supply.

In November 2007, the project participants signed Carbon Assets Development Agreement under which Fichtner Carbon Management GmbH committed to undertake, commission and initiate all required actions and services until issuance and commercialization of CERs from the project. For the provided services Fichtner will receive a particular share of CERs; whereas, the rest part can be merchandized.

Currently, the project participants negotiate with various carbon funds and companies interested in project financing and CERs purchase. Once investor is found, the project participants will proceed with project validation and further registration.