FRV reaches financial close with IFC, EBRD, and Ameriabank for the largest Utility Scale Solar Power Plant in Armenia

Armenia 25 March, 2021 17:25

▪ 55 MW Masrik-1 Solar Farm will produce enough clean energy to supply more than 20,000 homes and avoid the emission of over 40,000 tons of CO2 annually.

▪ 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 will support the project with senior loans and an investment grant from the European Union, mobilised by EBRD

▪ Ameriabank will support the project with tailored VAT financing loan facility.

▪ This is currently the largest utility-scale solar power plant in Armenia.

Yerevan, Armenia, March 23th, 2021

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.

“Armenia has great potential when it comes to the development of renewable energy, in particular solar energy” said Tristán Higuero, Chief Operations Officer of FRV. “The financial close of our first solar project in the region is a milestone for FRV as it allows us to expand our reach worldwide. Through this project, we will contribute to the country’s sustainable economic growth through the generation of wealth and employment, helping to build a more sustainable future”.

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: “We support international business in Armenia and have prioritized this project for its role in economic development, addressing environmental issues, creation of new job opportunities and improvement of the living standards in our country. We provided a loan to support development of the largest utility-scale solar power plant thus contributing to formation of a more independent and secure power system in Armenia”.

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 “Abdul Latif Jameel Energy, through FRV, is providing Armenia’s largest utility scale solar plant which is a testament to our commitment to developing the renewable energy sector. In finalizing this financial agreement for Masrik Solar Farm, we move closer towards our objectives and take pride in assisting Armenia’s shift towards a renewable future.