The EU, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) will support the development of the first utility-scale solar power plant in Armenia, which is also the first in the Caucasus region. The 55 MW solar facility, located in Mets Masrik Municipality, Gegharkunik Province, will boost Armenia’s supply of low-cost renewable energy, helping the country reduce its dependence on imported fuels and become an example for the rest of the Caucasus.

The solar power plant is expected to generate more than 128 GWh of electricity per year at a competitive tariff of a little over €0.04/kWh. The electricity will be sold under a power purchase agreement to Electricity Networks of Armenia, a company responsible for the distribution of electricity. This will cut the country’s carbon emissions by 40,000 tonnes per year.

Ambassador Andrea Wiktorin, head of the EU Delegation to Armenia, commented:

“The Masrik solar energy project will play a fundamental role in Armenia achieving its energy and climate objectives in line with the EU–Armenia Comprehensive and Enhanced Partnership Agreement and the Sustainable Development Goals. It also has the potential to provide a range of new jobs, create new industrial opportunities in the region and contribute to economic growth, just as the EU promotes with the new European Green Deal.”

The project will receive two long-term loans from the IFC and the EBRD, amounting to almost $18 million each. The project will also receive an investment grant of €3 million from the EU, mobilised by the EBRD.

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Press release