Abu Dhabi’s renewable energy company Masdar announced it has signed an agreement with the Government of the Republic of Armenia to develop a 200 MW solar photovoltaic plant, which will be Armenia’s largest utility-scale solar plant.
Located between the Talin and Dashtadem communities of Armenia, the Ayg-1 solar PV plant will be in an area where solar radiation is high and land is unusable for agricultural purposes. The plant will span over 500 hectares and will create numerous direct and indirect jobs
The Ayg-1 project will be developed on a design, finance, build, own, and operate (DFBOO) basis and the project company will be 85 percent owned by Masdar, with the Armenian National Interests Fund, (ANIF, a government-owned investment vehicle) holding 15 percent.
In July, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of US$0.0290 per kilowatt-hour (kWh) in a competitive process.
Gnel Sanosyan, the Minister of Territorial Administration and Infrastructure of the Republic of Armenia commented:
“The gradual increase of renewable sources in our country’s energy system is one of the priorities set by the Government of Armenia. We regard this cooperation with Masdar as an important step towards this goal, as well as towards endorsing Armenia’s investment potential. The Ayg-1 industrial 200 MW solar plant project is a milestone on this road. We expect the signing of this document to mark the start of fruitful and lasting cooperation on this and for new upcoming projects.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:
“This agreement marks a milestone on Armenia’s clean energy journey, and the development of this project will support the nation’s sustainable economic development. 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. ”
Source: Press release by Masdar. Photo credit: Masdar.