Fotowatio Renewable Ventures (FRV), a member of Abdul Latif Jameel Energy and a leading developer of renewable energy projects in the world, has successfully completed a financing deal for the construction of the largest industrial-scale solar plant in Armenia.
- The 55 MW Masrik-1 solar plant will produce enough clean energy to power more than 20,000 homes and avoid 40,000 tons of carbon emissions annually.
- Within the framework of the project, an electricity purchase agreement was signed with the "Armenia Electric Networks" company, according to which the produced electricity will be supplied to the community, bringing a significant benefit to the latter.
- The IFC and the EBRD will support the implementation of the project by providing prime loans and an investment grant from the EU to the EBRD.
- Ameriabank will support the implementation of the project by providing VAT financing.
- "Masrik-1" solar plant is currently the largest industrial-scale solar plant in Armenia.
Fotowatio Renewable Ventures (FRV), a member of Abdul Latif Jameel Energy and a leading developer of projects in the field of renewable energy sources in the world, has successfully completed a deal to finance the construction of the largest industrial-scale solar power plant in Armenia. Solar power plant "Masrik-1" with a capacity of 55 MW, which is being built in the municipality of Mets Masrik, Gegharkunik region, is the first of its kind in Armenia. This will allow to significantly expand the production of renewable energy in Armenia, reducing the country's dependence on fossil fuels.
In 2018, FRV and the Ministry of Regional Management and Infrastructure signed a government assistance program for the design, financing, construction, ownership and operation of a solar power plant with the support of the Renewable Energy and Energy Savings (R2E2) Fund (RA Government-authorized PII).
The Masrik-1 plant will produce more than 128 gigawatt hours of electricity per year at a competitive tariff of USD 41.9 per MWh. According to the contract, the produced electricity will be sold to the "Electric Networks of Armenia" company, which is responsible for electricity supply in Armenia. The plant can produce enough energy to power more than 20,000 households in Armenia. The project will also reduce carbon emissions by around 40,000 tonnes per year.
The implementation of the project is supported by the International Finance Corporation (IFC), a member of the World Bank Group, the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), which will provide up to 38.4 million US dollars in financing at various stages of the implementation of the project. Ameriabank will support the implementation of the project by providing VAT financing.
"Armenia has great potential when it comes to the development of the renewable, particularly solar energy production sector," said Tristan Higuero, director of operations at FRV. "Concluding the financing deal for our first solar plant project in this region is important for FRV, as it gives us the opportunity to expand the geography of our operations. Through this program, we will contribute to the sustainable economic growth of the country, providing an additional source of income and creating new jobs, which will contribute to building a more promising future."
Artak Hanesyan, the chairman-general director of Ameriabank's directorate, highlighted the importance of the project's implementation, noting that the Bank pays special attention to projects implemented in the field of renewable energy. "We support the activities of international companies in Armenia and for us this project stands out and is important first of all from the point of view of the development of our country's economy, solving ecological problems, creating new jobs, and improving the quality of life of our citizens. Emphasizing the prospect of creating an independent and secure energy system, Ameriabank is happy to support the construction of the largest industrial-scale solar power plant. A. Hanesyan noted that Ameriabank has always carried out active work in the field of energy, in particular, in the directions of financing hydropower plants, as well as the construction of solar plants. "The construction of the "Masrik-1" solar plant is one of the ambitious and key projects for our country, which I am sure we will successfully complete together with our partners."
"Abdul Latif Jameel Energy company, through FRV company, is implementing the construction of the largest industrial-scale solar plant in Armenia, which is evidence of our efforts in the direction of the development of the renewable energy sector. The signing of the financing contract for the construction of the Masrik solar plant is another step towards the realization of our goals. We are proud to support the establishment of the renewable energy sector in Armenia," said Abdul Latif Jameel Deputy Chairman and Deputy Director Fadi Jamil.