EDB to provide $37 million to finance construction of 11 solar power plants in Armenia
YEREVAN, August 4. /ARKA/. The Eurasian Development Bank (EDB) will provide up to $37 mln to finance construction of 11 solar power plants with total capacity up to 65 MW in Gegharkunik and Aragatsotn regions of Armenia.
The agreements to that end were signed in Yerevan by EDB Board Chairman Nikolai Podguzov and New Energy Group President Hayk Harutyunyan.
All 11 plants are to be commissioned this year. The new Energy Group will sell the electricity to the national power distributing company Electric Networks of Armenia (ENA) and use part of proceeds to repay the loan.
Electricity in Armenia is generated today by thermal, nuclear and hydroelectric power plants. The share of power produced by renewable sources is insignificant.
"Natural gas currently is the largest source of electricity production. According to our strategy in Armenia, the EDB is focusing on construction of solar power generation facilities, as well as on construction and modernization of hydropower facilities," he noted.
Podguzov stressed that the Bank's task until 2026 is to promote diversification of sources of power generation in the country.
"By doing so, we not only increase the reliability of the energy system, but also significantly improve the environment by reducing carbon emissions," he said.
"We are glad to implement these projects for the benefit of the Republic of Armenia and its citizens," he said.
In turn, Harutyunyan noted that the 11 solar power plants will produce about 130 million KWh, which is about 2% of Armenia's domestic electricity consumption.
"All our power plants will be put into operation in November and will produce green electric power," he said.
The development of renewable energy sources (RES) is a priority of the Armenian government as they reduce the dependence on fossil fuels, which are fully imported.
The potential of RES in Armenia is estimated at 8GW. The average annual duration of sunshine hours is 2,700, and the average annual solar energy flux is about 1,720 kWh per 1 square meter of horizontal surface (the European average is 1000 kWh/m). -0-
