EDB to finance construction of 11 solar power plants in Armenia

EDB to finance construction of 11 solar power plants in Armenia

PanARMENIAN.Net - The Eurasian Development Bank (EDB) will provide up to US $37 million to finance the construction of 11 solar power plants with a total capacity of up to 65 MW in the Gegharkunik and Aragatsotn Regions of Armenia.

The relevant documents were signed in Yerevan by Nikolai Podguzov, Chairman of the EDB Management Board, and Hayk Harutyunyan, President of the New Energy Group.

All the facilities are scheduled to be commissioned this year. The investment will be repaid from payments under electricity sales contracts between the borrower and the Electric Networks of Armenia.

Developing renewable energy sources (RES) is a priority of the Armenian government’s energy strategy. RES reduce the country’s dependence on fossil fuels, which are fully imported. The priority of RES and the intentions of Armenia’s government for their development are enshrined in the nation’s 2021–2040 Energy Strategy.

The potential of solar power plants in Armenia is estimated at 8 GW. The average annual sunshine is 2,700 hours while the average annual solar radiation falling on a horizontal surface is about 1,720 kWh per sqm (the European average is 1,000 kWh per sqm). A quarter of the country is endowed with solar energy resources of 1,850 kWh per sqm per year.

The EDB and Tashir Group, meanwhile, have entered into a cooperation agreement, signed by Denis Ilin, Vice Chairman of the EDB Management Board, and Narek Karapetyan, First Vice President of Tashir Group, in the presence of Nikolai Podguzov, Chairman of the EDB Management Board. The parties have agreed to develop cooperation in the EAEU+ in metallurgy, telecommunications, energy and other sectors.

They have also agreed that the Bank will finance infrastructure modernisation and the manufacture of metering devices as part of a programme to implement international management standards and automated metering systems in Armenia. The EDB will allocate US $30 million for this purposes under a loan agreement.

The EDB-funded implementation of automated metering systems is an important step that will help to significantly reduce electricity losses and improve energy efficiency. The project will boost production capacity to 100,000 units per year and create up to 300 jobs.

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