The Abu Dhabi Future Energy Company (Masdar) has signed a memorandum of understanding (MoU) with the Armenian National Interests Fund (ANIF) to explore collaboration in developing 500 MW of renewable energy projects. While the projects are not yet identified, Masdar says the 2 entities will explore collaboration for 200 MW solar PV, 200 MW of floating solar power and 200 MW of onshore wind power plants.
According to Masdar, Armenia offers a significant scope for floating solar power development as the country has more than 200 rivers and lakes, and at the same time it solar irradiation levels are around 1,720 kWh per m2, which is much higher than an average of 1,000 per m2 in Europe.
"As the fastest growing economy in the Eurasian Economic Union, backed by an increasingly open and supportive regulatory environment, Armenia is a promising location for investment in both solar and wind energy," said Masdar CEO Mohamed Jameel Al Ramahi at the MoU signing ceremony. This development follows Masdar's focus on Europe to pursue opportunities in wind and solar power development as announced in January 2019 (see Masdar Focuses On RE In Europe).
In March 2017, another United Arab Emirates (UAE) based entity, Ocean Holding was reported to have plans to develop 100 to 120 MW of solar PV projects in Armenia with an estimated investment of $100 million (see Up To 120 MW PV Planned In Armenia).
Armenia aims to generate 26% of its total energy through renewable energy sources by 2025.
According to the US government's International Trade Administration website Export.gov, Armenia plans to build industrial-grade solar stations with up to 110 MW capacity. Spanish consulting company Aries Engineering has submitted feasibility studies for 2 projects.
Out of these solar projects, the 55 MW Masrik tender was won by FRV and FSL offering a tariff of $0.0419 per kWh. They have been seeking financial support for the project from the European Bank for Reconstruction and Development (EBRD) and the international Finance Corporation (IFC) (see 55 MW Armenian PV Project Seeking EBRD & IFC Support).