Financial close on IFC, EBRD-financed solar power plant in Armenia
Fotowatio Renewable Ventures (FRV) has closed financing for the development of the largest utility-scale solar power plant in Armenia.
Located in Mets Masrik municipality, Gegharkunik region, the 55MW plant is supported by the International Finance Corporation, the European Bank for Reconstruction and Development, and the European Union. They will extend up to $38.4 million financing structured in different tranches of debt. Ameriabank will provide AMD loan facility to finance company’s VAT needs.
Masrik-1 solar power plant will generate more than 128 gigawatt-hours of electricity annually at a competitive tariff of $41,9/MWh. The electricity will be sold under a power purchase agreement to Electric Networks of Armenia. 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 tonnes of carbon emissions annually.
In 2018, FRV and the Ministry of Territorial Administration and Infrastructure signed a Government Support Agreement to design, finance, build, own and operate the plant with the support of the Renewable Resources and Energy Efficiency Fund, the implementation agency authorized by the Government of Armenia.
