MODERNIZATION OF "MUGHAN HYDRO POWER PLANT"

Initiator: “Mughan SES” OJSCLegal Form: Open Joint-Stock Company (OJSC)

Ownership: Private

Investment Project Overview:

• Project Concept: Modernization of Hydropower Plant

• Project Significance: National Importance

• Location and Environmental Setting: Imishli City, Azerbaijan

• Type of Activity: Green Energy

• Total Investment Cost:

  • 5,400,000 USD / 9,180,000 AZN

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The USD to AZN exchange rate (1 USD = 1.7 AZN) is based on the Azerbaijan Republic Central Bank’s rate for January 2023.

Project Summary:“Mughan SES” OJSC is a leading producer of ecologically clean electricity in the southern region of Azerbaijan, located in Mazrali Village, Imishli District. The Mughan Hydropower Plant (HPP) was established in 1962 on the Mughan Water Channel, with a maximum operating capacity of 4.5 MW. After being privatized in 2004, the plant was reopened following extensive renovations. Current design works are underway to increase the plant's capacity.

The total energy system of "Bahramtepe-Chingil" OJSC and "Imishli Demir-Beton" OJSC (Azerbaijan) is supplied with electricity from Mughan HPP through a 6-kilowatt transformer yard owned by the station. The annual production volume is between 14-18 million kilowatt-hours. The total projected investment, including the construction of a critical service system, acquisition of intangible assets, and installation of equipment, amounts to AZN 9,180,000. It is anticipated that 56.7% of the investment will be financed through equity, while 43.3% will be funded via debt.