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EBRD, IFC and EU to finance first solar plant in Armenia and the Caucasus

The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the European Union agreed to support the development of the first utility-scale solar power plant in Armenia, which is also the first for the Caucasus.

The 55 megawatts MW power plant facility, located in Mets Masrik municipality, will boost Armenia’s supply of renewable energy and will help the country reduce its reliance on imported fuels.

“The EBRD is delighted to support this landmark project, which builds on our active policy engagement and investments in the Armenian power sector since 1993,” said Aida Sitdikova, EBRD Director at Energy Eurasia, Sustainable Infrastructure Group. “Following the EBRD’s financing of electricity networks, private generation and privatisations, we are pleased to provide financing for this first utility-scale solar project, as we are working with authorities on developing further renewable auctions in wind and solar. We are deeply grateful to our partner, the European Union, for co-financing this remarkable project with us.”

The plant is being developed by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, a global leader in utility-scale renewable energy projects. The Masrik solar plant is expected to generate more than 128 gigawatt-hours of electricity annually at a competitive tariff of 4.19 cents per kilowatt-hour. The electricity will be sold under a power purchase agreement to Electricity Networks of Armenia, a utility responsible for the distribution of electricity.

The project will displace the release of 40,000 tonnes of carbon emissions annually. Right now, nearly 70 per cent of Armenia’s electricity generation depends on imported fossil fuels. As the country’s demand for electricity grows, renewables are expected to provide a sustainable and low-cost alternative source of energy and the Masrik plant is designed to set an example for the rest of the Caucasus.

“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,” commented Andrea Wiktorin, EU Ambassador at the EU Delegation to Armenia.  “It also has the potential to provide a range of new jobs, create new industrial opportunities in the region and contribute to economic growth, just as the EU promotes with the new European Green Deal.”

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