Azerbaijani power plant first in world to earn carbon credits through energy efficiency modernisation
A thermal power plant in Azerbaijan, AzDRES, will become the first in the world to be able to sell carbon credits earned thanks to an energy efficiency modernisation project, Trend news agency reported, referring to the EBRD report.
The project was financed by the EBRD in 2006; the $207 million loan allowed the plant to rehabilitate old and inefficient turbines and boilers, modernise command and control systems, repair chimneys and water cooling systems and make a number of other improvements.
The project, 'AzDRES Energy Efficiency Improvement', has been registered under the Kyoto Protocols' Clean Development Mechanism (CDM) by the CDM Executive Board. The project on rehabilitation of seven dual fuel, gas and heavy fuel oil units of 300 MW each is estimated to generate over 10 million carbon credits over the ten-year crediting period. These credits can now be sold on global carbon markets, including the EU's Emissions Trading Scheme, the EBRD report says.
The energy efficiency improvement of the AzDRES TPP is the first power plant rehabilitation project registered under the CDM and the second CDM project in Azerbaijan. It is also the largest CDM-registered project in the Caucasus.
Owned by the national energy operator Azerenerji, the AzDRES thermal power plant is the largest power plant in Azerbaijan, generating half of the country's electricity. The rehabilitation project significantly increased efficiency and capacity at the plant, which is now better able to meet the increasing demand of a rapidly growing economy. Moreover, the project has improved Azerbaijan's energy security and increased reliability of its energy infrastructure.