BISHKEK (TCA) — After exporting electricity for decades, Kyrgyzstan has turned into an electricity importer last year; so the issue of power supply is now very relevant. The potential of renewable electricity sources is 840 million tons of standard fuel but the country currently uses only 1% of it. That was said at the recent international roundtable in Bishkek to discuss the latest small hydro power technologies.
Creation of small hydropower plants (HPPs) is very promising for small and medium-sized enterprises and remote settlements of Kyrgyzstan, which has many mountain rivers. Modern technologies are particularly attractive due to the absence of negative influence on the environment.
The roundtable participants discussed the investment opportunities and financing schemes for such projects, as well as state support for renewable energy projects.
Electrification is vital for the development of remote but economically promising regions of the country. Connecting them to the central power grid requires much time and large capital expenditures. Companies from Russia and Hungary offered a simple and quick solution to the problem.
Mini HPPs
Due to innovative solutions, the companies created mini HPPs in containers, with generating capacity from 0.5 to 2 MW. They can satisfy the needs of population and industry in areas where there is no power lines. There are private animal farms in remote mountain pastures, hunting grounds and recreational areas that do not have access to electricity.
Mini HPPs can also serve as an alternative to inefficient and environmentally harmful diesel generators.
The presence of mountain rivers is the main condition for operation of mini-HPPs. The payback period of mini HPPs is two years, compared to about six years for small HPPs.
Alternative energy
Alternative energy sources have a generating capacity of up to 30 MW, so they cannot compete with big power plants. Large HPPs are located in the south of the country, while the northern part of Kyrgyzstan is the main consumer of electricity. There is a large hydropower potential of small HPPs in the north.
There are several small rivers in the Jety-Oguz district of the Issyk-Kul province, and scientists of the Institute of Water Problems and Hydropower Energy under the Academy of Science of Kyrgyzstan have explored the hydropower potential of the rivers taking into account the climatic conditions and irrigation mode. To avoid conflicts with local population during the growing season, it is necessary to build small HPPs above the upper point of the irrigation water intake.
Five small HPPs with a total capacity of 6 thousand KWh could build on Juuku River alone. There are dozens of similar rivers in the Issyk-Kul region. According to scientists, the full use of hydropower potential of small rivers in the Jety-Oguz district could provide 70% of the electricity demand in the district.
Small HPPs are easy to build. In addition, they can help develop tourism, as there is no electricity in many tourism sites.
Construction of hydroelectric facilities requires large investments. Such projects can be implemented if mechanisms of the law on renewable energy sources will fully operate. The law was adopted long ago, but by-laws and mechanisms for its implementation have not been developed so far.
Investors are primarily interested in the price and guarantees of distribution companies that the law on renewable energy sources will be executed.
There are a few major players in small hydro power sector in the country, including the Kalininskaya HPP (where French investors are working), Issyk-Ata, Chakan, and Naiman HPPs.
Solar power
Solar and wind energy sources require more funds for their initial investment, installation and subsequent maintenance. Nevertheless, the private sector has begun buying solar panels.
According to the State Customs Service of Kyrgyzstan, in 2014-2015 and seven months of 2016, Kyrgyzstan imported 5,270 solar cells and panels worth $190.8 thousand, purchased by private companies and research institutes.
Tariff policy
The Government provides HPP investors with a preferential tariff policy for eight years, the Agency for Investment Promotion of Kyrgyzstan (IPA) said. In Kyrgyzstan, there are 63 potential projects for HPP construction.
Despite the high potential of small HPPs, there are certain difficulties. In particular, the law provides procedures for conducting a contest for building small HPPs but says nothing about the allocation of land for construction.
The IPA suggested that investors first obtain permits and be informed about the price at which they could sell electricity, and only then begin construction.
After eight years of the preferential period, the Government would offer investors its own tariffs and the investors could either accept them or sell their facilities to a third party.
