The Reconstruction and development IFC bank from Europe, which is a World Bank Group member, and also the European Union (EU) has concurred to back the building up of the original utility-scale solar energy factory in Armenia, and it is also the first in the Caucasus. The power plant facility, 55 MW, is situated in Mets Masrik metropolis of Gegharkunik Province. It will increase Armenia’s renewable energy supply and help the country reduce its dependency on imported fuels.
The factory is being built up by Fotowatio Renewable ventures (FRV), a section of Abdul Latif Jameel Energy, a world leader in renewable power projects. The firm will get a $35.4 million debt funding package comprising of two $17.7 million long-term financial ventures, one for both from EBRD and IFC. The project will also be given 3 million Euros in investment funding from the European Union, organized by EBRD. The IFC funding package comprises an $8.9 million advance from the IFC’s own account and $8.9 million increases from the Finland-IFC merged Finance for Climate Program.
The Masrik solar factory is anticipated to produce more than 128 gigawatts of electricity hours in a year at a possible tariff of 4.19 cents per kilowatt in one hour. The electricity will then be traded under a power purchase contract to Armenia Electricity Networks, a facility accountable for electricity allocations. The project will relocate the release of 40,000 tons of annual carbon emissions. Currently, about 70 percent of Armenia’s electricity production relies on imported fossils. As the nation’s electricity demand grows, recyclables are anticipated to offer sustainable and affordable alternative energy sources, and the Masrik factory is made to be an excellent example for the other Caucasus.
The director of EBRD, Aida Sitdikova, confirmed that EBRD is pleased to back up the project since it builds its active rule engagement and ventures in the Armenian energy sector since the year 1993. After the EFRD funds’ electricity networks, personal generation, and privatizations, they are delighted to offer to fund for the solar project. They are operating with lawmakers on building further recyclable auctions in solar and wind. He added that they are delighted to their associate, the European Union, for co-funding the unique project with them. Mikel de Irala, the Managing Director of the Middle East and Africa, FRV stated that Armenia has a considerable probability of developing recyclable energy, particularly solar power. The nation is a planned FRV priority.