Silicon Valley in the North Caucasus steps closer

Russia's North Caucasus region could be about to set up its own Silicon Valley with a joint venture between the regional government and private businesses.

The blueprint presented on the Tuesday State officials meeting of Northern Caucasus republics involves establishing a high-tech hub making silicon parts for solar power systems.According to the blueprint five Northern Caucasus federal districts will be involved in the project with each of them playing its own important role in supply and production of raw materials. “Polycrystalline silicon production will be located in Stavropol region, with monocrystalline silicon production set up in Kabardino-Balkaria. Where by the final production of photovoltaic cells and solar modules will be located in Karachay-Cherkessia and Dagestan respectively.”Anton Usachev, Coordinator of the Association of Solar Energy of Russia, says in 2011 the world solar energy market will grow by 30%."The raw material and production base of alternative energy market is very new to Russia and is being fostering by local companies such as Nitol Solar and Hevel Solar- solar manufactory in Novocheboksarsk a joint project of Renova Group and Rosnano .  By now, the potential market is export-oriented.”The report added that that adoption of the blueprint could deliver significant economic spinoffs in the region. “The silicon valley project worked out by the Republic of North Ossetia-Alania would help attract investment and develop alternative energy source manufacturing in the region.” Vakha Yevloyev, Representative of the Republic of Ingushetia, noted that the one billion dollar project could break even in two to seven years, with the costs split between investors and the state.“The cost of the 49 hectares project will come at 32 billion roubles with pre estimated production volume of 39 billion roubles per year and from 2 to 7 years of return on investments.”