IFC, EBRD, and also EU to Support First Solar Project in Armenia

• IFC, EBRD and also the EU have joined to sustain the advancement of the first utility-scale solar energy plant in Armenia, the 55 MW Masrik Solar Project.

The International Finance Corporation (IFC), a participant of the World Bank Group, the European Bank for Reconstruction and Development (EBRD), and also the European Union (EU) have joined to sustain the growth of the very first utility-scale solar energy plant in Armenia, which is likewise the very first for the Caucasus. The 55-megawatt (MW) nuclear power plant center, situated in Mets Masrik municipality, Gegharkunik Province, will certainly boost Armenia's supply of renewable energy and will assist the country minimize its dependence on imported gas.

The plant is being created by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, a global leader in utility-scale renewable energy tasks. The business will get a USD 35.4 million debt financing plan containing two USD 17.7 million long-lasting finances, one each from IFC as well as the EBRD. The job will certainly also obtain a EUR 3 million financial investment grant from the European Union, mobilised by the EBRD. The IFC financing bundle consists of a USD 8.9 million finance from IFC's own account and a USD 8.9 million lending from the Finland-IFC Blended Finance for Climate Program.

" Armenia has wonderful possible when it comes to the advancement of renewable energy, particularly solar power, as well as the country is a critical concern for FRV," stated Mikel de Irala, Managing Director, Middle East and Africa, FRV. "The monetary close of our very first solar job in the Caucasus-region is a turning point for FRV and also it allows us to expand our reach and proceed leading the utility-scale solar power market worldwide. About this project, we are exceptionally happy to add to the nation's sustainable financial development, local generation of wealth as well as local work, thus helping to develop a more lasting future."

The Masrik solar plant is expected to create greater than 128 gigawatt-hours (GWh) of power each year at a competitive toll of ȼ4.19 per kilowatt-hour. The power will certainly be offered under a power acquisition arrangement to Electricity Networks of Armenia, an utility responsible for the circulation of power. The project will certainly displace the release of 40,000 tons of carbon discharges annually. Today, almost 70 percent of Armenia's electricity generation depends on imported fossil fuels.

As the nation's demand for electrical power grows, renewables are expected to provide a sustainable and inexpensive alternate resource of energy and also the Masrik plant is created to set an example for the rest of the Caucasus.

Cheryl Edleson Hanway, IFC's Regional Senior Manager for Infrastructure and also Natural Resources, claimed "Energy safety and security is critical to company task, which is why supporting Armenia's renewable energy plan is a fundamental part of IFC's goal. The Masrik solar task is an added milestone in IFC's support of Armenia's efforts over the years to bring in private sector investment to power generation. It is the very first step in the country's enthusiastic solar energy strategies and will certainly function as an example to be followed by many more projects in the years to come."

The job-- which includes the development, building, as well as procedure of a 55-MW power plant as well as a nine-kilometer transmission line-- is the first competitively-tendered solar-photovoltaic job in Armenia. The World Bank aided the government prepare the task and also offered purchase consultatory assistance. The bidding process, backstopped by the Scaling up Renewable Energy Program and also the World Bank, was very affordable.