IFC, EBRD and EU in cooperation with Fotowatio Renewable Ventures developing solar energy in Armenia
15.07.2020,
17:26
The World Bank Group's International Finance Corp (IFC), the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) said Wednesday they would support the creation of the first utility-scale solar power plant in Armenia and in the region, the IFC press office reports.

YEREVAN, July 15. /ARKA/. The World Bank Group's International Finance Corp (IFC), the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) said Wednesday they would support the creation of the first utility-scale solar power plant in Armenia and in the region, the IFC press office reports.
The 55-megawatt power plant in Armenia's village of Masrik, Armenia’s Gegharkunik province, would increase the country’s capacity in the renewable energy industry and would lessen its dependence on imported energy carriers.
The project is being implemented by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, a global leader in utility-scale renewable energy projects.
IFC and EBRD each pledged to allocate $17.7 million long-term loans for the project. The program will also receive €3 million in investment grants from the European Union.
The IFC financing package includes a loan of $ 8.9 million from the corporation's own funds and $ 8.9 million from co-financing of Finland and the IFC Climate Program. Ameriabank will provide financing for additional expenses on paying taxes.
The plant is estimated to generate more than 128 gigawatt-hours of electricity annually with the competitive price of 4.19 cents per 1 kWh and will lessen annual carbon emissions by 40,000 tons. Around 70 per cent of Armenia's current electricity output depends on imported fossil fuels.
Since the demand for electricity in the country is growing, it is expected that renewable energy will provide a stable and cheap alternative source, and the activities of the Masrik station will serve as an example for other countries of the Caucasus.
Mikel de Irala, FRV Territorial Director for the Middle East and Africa, said that Armenia has great potential in the development of renewable energy, particularly solar. The country is of strategic importance for the company, as it provides an opportunity to maintain a leading position in the field. He also said that the program provides an opportunity to contribute to the country’s sustainable economic growth, local generation of wealth and local employment.
Andrea Wiktorin, EU Ambassador, EU Delegation to Armenia, for her part, said the Masrik Solar Energy Project will play a fundamental role in Armenia achieving its energy and climate objectives in line with the EU-Armenia Comprehensive and Enhanced Partnership Agreement and the Sustainable Development Goals.
It will help to create new jobs, new production capacities in the region and contribute to economic growth,” said Victorin, the importance of the program for the green economy, she said.
The project, which includes the development, construction, and operation of a 55-megawatt power plant and a nine-kilometer transmission line, is the first competitively-tendered solar-photovoltaic project in Armenia. The World Bank helped the government prepare the project and provided transaction advisory support.
The Masrik program came as result of 15 years of cooperation between Armenia and the WB, in the framework of which large-scale reforms were supported to ensure a cleaner and safer electricity supply.
IFC, EBRD and EU assisted Armenia in the electricity sector to attract private investment, learn from international experience and the latest technology.
For the first time in its history, Armenia gave green light to the first large solar station on an industrial scale. In 2019, the results of the tender for the construction of the first major photovoltaic solar station "Masrik-1" were summed up. The tender winner was a consortium of two leading international companies from the Netherlands Fotowatio Renewable Ventures B.V and Spain FSL Solar S.L., which offered the lowest price (4.19 cents per 1 kWh).
The Masrik-1 station is planned to be built in the Metz Masrik community in the Gegharkunik region exclusively by attracting foreign investment. The expected investments amount to about $ 50 million. The plant’s capacity will allow annually producing up to 120 million kWh of electricity. The winner was given six months to draw up contracts for financing the project, after which two years for the construction of a power plant and power lines. Sale of electricity generated by the station will be carried out in accordance with the purchase agreement with the Electric Networks of Armenia company. -0---