FRV reaches financial close with IFC, EBRD, and Ameriabank for the largest Utility Scale Solar Power Plant in Armenia
The project signed a Power Purchase Agreement (PPA) with Electric Networks of Armenia which will distribute the electricity produced by the plant delivering significant benefits to the community.
IFC and EBRD support the project with senior loans and an investment grant from the European Union, mobilised by EBRD.
Ameriabank supports the project with tailored VAT financing loan facility.
This is currently the largest utility-scale solar power plant in Armenia.
Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy and a leading global developer of renewable energy projects, has closed the financing agreement for the development of the largest utility-scale solar power plant in Armenia. Located in Mets Masrik municipality, Gegharkunik region, the 55 MW solar power plant is the first-of-its-kind in the country, and it will help boost Armenia’s supply of renewable energy while reducing its dependence on fossil fuels.
In 2018, FRV and the Ministry of Territorial Administration and Infrastructure signed a Government Support Agreement (GSA) to design, finance, build, own and operate the solar power plant with the support of the Renewable Resources and Energy Efficiency (R2E2) Fund, the implementation agency authorized by the Government of Armenia.
“Masrik-1” solar power plant will generate more than 128 gigawatt-hours of electricity annually at a competitive tariff of 41,9 USD/MWh. The electricity will be sold under a power purchase agreement to Electric Networks of Armenia, the utility company responsible for distribution of electricity in the country. The plant will produce enough energy to supply more than 20,000 Armenian households and is projected to avoid the release of over 40,000 tons of carbon emissions annually.
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). They will extend up to USD 38.4 million financing structured in different tranches of debt. Ameriabank will provide AMD loan facility to finance company’s VAT needs.
Artak Hanesyan, Ameriabank’s Chairman of the Management Board-CEO, highlighted the importance of the project and said that the renewable energy projects are a priority for the Bank:
According to Artak Hanesyan, Ameriabank has been actively supporting the Energy sector in the country through financing of hydropower plant (HPP) and solar power plant (SPP) projects: “Masrik-1 solar power plant is yet another daring and critical project for our country which, I am sure, will be a success due to our joint efforts”.
Fady Jameel, Deputy President & Vice Chairman of Abdul Latif Jameel, said