Dubai: Abu Dhabi’s renewable energy company Masdar will build the biggest solar plant in Armenia. This follows a deal signed to develop a 200MW solar photovoltaic plant in that country.
“The gradual increase of renewable sources in our country's energy system is one of the priorities set by the Government of Armenia,” said Gnel Sanosyan, Armenia’s Minster of Territorial Administration and Infrastructure. “We regard this cooperation with Masdar as an important step towards this goal.”
We look forward to working with the Armenian National Interests Fund on further opportunities in this field, and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia’s energy mix
The ‘Ayg-1’ project will be developed on a design, finance, build, own, and operate (DFBOO) basis. The project company will be 85 per cent owned by Masdar, with the Armenian National Interests Fund (a government-owned investment vehicle) holding 15 per cent.
In July last, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of $0.0290 per per kilowatt-hour (kWh) in a competitive process.
- The Ayg-1 plant will be located between the Talin and Dashtadem communities of Armenia, in an area where solar radiation is high and land is unusable for agriculture.
- The plant will span over 500 hectares. Armenia is looking to increase the share of renewables in its energy mix and reduce its dependence on imported oil and gas.
- The country also has significant solar energy potential, with an average annual solar energy flow per square meter of horizontal surface of around 1,720 kWh, compared with the average European figure of 1,000 kWh.