Energy News of Armenia 2019 - More Interest from International Community
20 Feb, 2019

The European Bank for Reconstruction and Development (EBRD) and the European Union will support the Armenian government in creating a green economy, the head of EBRD Yerevan Office Dmitry Gvindadze said on February 19.

Speaking at a ceremony launching the Green Economy Financing Facility (GEFF), he said the EBRD and the Armenian government consider the main sources of clean energy as their priorities.

Gvindadze said EBRD's activities in this area are correlated with the projects approved by the Armenian government, and when developing a strategy for the country, the Bank will take into account all the priorities that the government has set.

"We use all our opportunities in Armenia to open individual credit lines to stimulate the provision of loans to SMEs in the area of ??energy efficiency," he said. Gvindadze mentioned some major projects, one of which is the Masrik solar station with a capacity of about 55 MW.

In 2018 the government awarded the construction of the 55MW Masrik-1 solar power plant

to a consortium comprising Fotowatio Renewable Venture (FRV) and FSL Solar. Masrik-1 is reportedly the first competitively tendered independent power project (IPP) in the country.

The 55 MW solar plant is located in Masrik, Gegharkunik province, eastern Armenia, and will require an investment of $50 million. The construction of the plant is expected to be accomplished no later than in 2020.

It is projected to annually produce up to 120 million kWh of electricity. During its 20-year lifespan, the power plant is expected to reduce nearly one million tons of carbon, as well as create short-term and long-term jobs in the region.

The project is also expected to improve long-term energy security in the country by promoting the development of solar resources. The country's dependency on imported natural gas will also be reduced.

Dmitry Gvindadze said EBRD supports the Armenian government's idea of economic revolution, and for this purpose it is mobilizing additional resources to help develop the private sector, stimulate growth, and provide assistance in the implementation of numerous programs in the field of green economy.

ADB - Asian Development Bank official: Electric Networks of Armenia have strategic role in energy sector

Directors of the Central and West Asia, Private Sector Operations, and Sustainable Development and Climate Change Departments of the Asian Development Bank (ADB) opened a joint ADB event in Manila, the capital city of the Philippines.

From Armenia, the Electric Networks of Armenia (ENA) Company was attending this event.

ENA General Director Karen Harutyunyan presented the course of the ten-year investment program of this company, as well as the prospects for the ENA's development. He stressed the role and key terms of the ADB and several other international investment financial institutions, which have a great part in having a more efficient and reliable electricity grid in Armenia and contribute to its economic growth.

"Also, exchange of knowhow with the ADB was extremely important," Harutyunyan noted, in particular.

"The existence of a more efficient and reliable electricity distribution network is important to the growth of Armenia's economy," ADB Investment Project Manager Narine Avetisyan noted, for her part. "ENA has a strategic role in the energy sector, [and] which needs to resolve the key issues and objectives of the domain. Our cooperation will assist the ENA in the implementation of the investment program."

Ameriabank receives EBRD award for Greenhouse Investment

Ameriabank has received the Agent of Change award by the European Bank for Reconstruction and Development for Investment in Greenhouse in Armenia.


Head of Corporate Lending Department at Ameriabank Vahan Kajayan said they have supported greenhouses engaged in growing flowers, tomatoes, strawberries.

"We have presence in almost all the provinces and work with some 10 greenhouses that occupy a combined area of more than 50 ha," Kajayan said, adding that funds are directed not only to the support of existing greenhouses, but also to the creation of new ones.

According to him, an agreement on attracting $12.5 million for energy saving projects has recently been signed.

The Head of Corporate Lending Department said that the tendency of energy-saving technology development is observed in Armenia and throughout the world. Technology development makes them accessible and exciting, especially for Armenia, which has no "not green" energy resources, he added.

EBRD to back green technology in Armenia with EUR-2.5m loan

The European Bank for Reconstruction and Development (EBRD) will extend a EUR-2.5-million (USD 2.8m) loan to ArmSwissBank CJSC to support power efficiency and renewable energy investments in Armenia.

Co-financed by the Green Climate Fund (GCF), the loan will be beneficial to small and medium-sized enterprises (SMEs) as well as corporations. Under this new Green Economy Financing Facility (GEFF), funding is specific to investments in green technology, such as thermal insulation, photovoltaic (PV) solar panels, geothermal heat pumps and water efficient irrigation systems.

Aside from this, EBRD stated that companies interested in securing a loan for green technologies may also benefit from investment incentives funded by the Climate Investment Funds (CIF).

Back in October 2018, Ameriabank CJSC was awarded a USD 12.5 million (EUR 11m) loan from the European bank also focused on SMEs and corporate investors.

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