Prague, 26 November 1997 (RFE/RL) -- The European Bank for Reconstruction and Development (EBRD) today announced that it is granting a $100 million loan to Russia to help build a geothermal power plant in Kamchatka.
In a statement issued from its London headquarters, the EBRD said a Russian firm called Geoterm will build the 40 megawatt power station. The Bank says it will be the first renewable energy project launched in the Russia Federation.
The EBRD said the project will significantly increase local energy production in Kamchatka, which remains unconnected to the Russian power grid. The EBRD is praising the project as an economical and environmentally friendly alternative to heavy fuel oils and nuclear power.