In order to develop the domestic energy sector, a number of programs are being implemented. Minister of Territorial Administration and Infrastructure of the Republic of Armenia Gnel Sanosyan told reporters on November 28 on the sidelines of the Energy Week.
According to him, one of these large projects is being implemented in the field of atomic energy, and the second one is being implemented in the field of renewable energy. It is planned that in 2030 the share of solar energy in total electricity production will be increased to 15%. Given the current pace, it is possible that these volumes will be exceeded. By 2040, it is planned to increase the volume of electricity production from solar generation facilities by another 1,500 MW, and from wind stations by 500 MW.
The Minister noted that Armenia has the potential to increase the volume of electricity exports. Some of that electricity is exchanged for Iranian gas supply. In order to expand the barter deal, Yerevan plans to increase gas supplies from Iran. "We currently import 365 million cubic meters of natural gas per year from Iran. Based on a well-known agreement, we return them electricity in the ratio of 1/3. A few months ago, we signed an agreement with our partners to extend the project until 2030," he said.
The document not only implies an extension of the deadline, but also contains the possibility of increasing the volume of supplies from Iran to Armenia and, accordingly, the volume of returned electricity. He noted that the diameter of the current gas pipeline makes it possible to increase supplies. "There is no need for a new one yet, since the current one is not used at full capacity," Sanosyan noted.
Annually Armenia imports gas in the amount of more than 2.5 billion cubic meters, of which 80-85% is from Russia, the rest from Iran. In 2022, imports amounted to about 2 billion 966 million cubic meters, of which 366 million came from Iran, 2 billion 600 million from the Russian Federation.
Source:finport.am
November 21, 2023 Construction of southern section of North-South transport corridor discussed in Armenia
Representatives of Armenia and Iran at a meeting on November 21 discussed details of the construction of the fourth section of the North-South transport corridor, reported the press service of the Ministry of Territorial Administration and Infrastructures of the Republic of Armenia.
Participating in the meeting was an Iranian delegation led by Dr. Mohammad Hossein Soufi, President of the Touring and Automobile Club of the Islamic Republic of Iran (TACI) and the leadership of the Department of Policy, Licensing and Permits of the Ministry of Administration of the Republic of Armenia, as well as those responsible for the implementation of the project, discussed the project for the construction of a corridor within the framework of the 4th tranche, which provides for the construction of the Sisian- Kajaran road.
Mr Mohammad Hossein Soufi stressed that the purpose of the visit of the Iranian delegation is to discuss issues related to improving transport links between the two countries. The guests presented their approaches and expressed hope that the two countries, by ratifying a number of international documents, will be able to facilitate the processes of entry and exit.
Speaking about the road sector, representatives of the ministry presented the priorities of the RA government, talking in detail about the strategic importance of the investment project of the North-South road corridor.
Source:finport.am
November 16, 2023 Armenia signed the Framework Agreement on the Establishment of the International Solar Alliance
On November 16, at the Ministry of Foreign Affairs of the Republic of Armenia the official signing ceremony of the Framework Agreement on the Establishment of the International Solar Alliance by Armenia was held, the foreign ministry said in a statement.
According to the source, the signing ceremony was attended by Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia and the Ambassadors of co-founding countries of the International Solar Alliance - Ambassador of France Olivier Decottignies and Ambassador of India Nilakshi Saha Sinha.
The Agreement was signed by Deputy Foreign Minister Mnatsakan Safaryan, and the signed original copies were officially handed over to Nilakshi Saha Sinha, Ambassador of India - the Depositary State of the Agreement.
''The Agreement will then undergo an internal ratification process and enter into force on the thirtieth day following the handover of the instrument of ratification by Armenia to the Depositary.
Armenia's accession to the International Solar Alliance is an important step towards combating climate change, developing renewable and green energy resources, ensuring energy access and energy security,'' reads the statement.
The International Solar Alliance was established through the joint efforts of India and France towards working together to combat climate change and harness solar energy resources. The concept of the Alliance was developed in 2015 within the framework of the 21st Conference of the United Nations Framework Convention on Climate Change (COP21) held in Paris. In 2020 The Alliance made changes to the Framework Agreement, according to which all UN member states have the opportunity to join the Alliance. Currently, 116 states have signed the Framework Agreement of the Alliance, 94 of which have submitted the necessary ratification documents to become full members of the Alliance. The decision-making body of the Alliance is the Assembly, convened once a year at the level of relevant ministers from the member states. The Alliance is headquartered in India.
Renewable energy is one of the most important directions of the development of the energy system in Armenia, where solar energy has developed particularly well during recent years. Today, more than 5 percent of the total electricity produced comes from solar plants; the strategic program on energy development foresees by 2030 to increase the share of solar energy in the total to 15 percent.
Source:armenpress.am
November 9, 2023 Germany to provide EUR 12M loan to Armenia under renewable energy programmes
The Armenian government approved the ratification of the agreement on financial cooperation for 2022 with the German government.
On August 16, an agreement on financial cooperation for 2022 was signed between the government of the Republic of Armenia and the Federal Republic of Germany.
On the Armenian side, the document was signed by RA Minister of Economy Vahan Kerobyan, and on the German side by Viktor Richter, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany.
The agreement envisages providing financial support of up to 12 million euros for the "Expansion of renewable energy and energy saving. for implementing phase III" project.
The use of the amount specified in Article 1 of the Agreement and the conditions for the provision of this amount are determined by agreements concluded between the German Development Bank (VVB-KfW) and borrowers who are subject to German law. If these agreements are not concluded within five years after the allocation, then the allocation of the amount specified in Article 1 is canceled irrevocably. The deadline for disbursing loan funds is set until October 13, 2027. It is noted that the Government of the Republic of Armenia exempts KfW from direct taxes payable in the Republic of Armenia in connection with the conclusion and implementation of agreements specified in Article 1 and Article 2 of the draft.
The agreement provides the framework within which it is planned to sign separate financial or credit agreements under the above programs in the future.
Source:finport.am
October 31, 2023 Armenia expresses hope for launch of construction of power lines to Georgia
There is every reason to assume that work on the construction of the Armenia-Georgia high-voltage power transmission line will begin next year. Minister of Territorial Administration and Infrastructure of the Republic of Armenia Gnel Sanosyan stated on October 31 at the RA NA Standing Committees discussions on the draft state budget for 2024.
He noted that at the beginning of next year the tender processes will be completed and an agreement on the construction of power lines will be concluded with the winner of the competition. The minister expressed hope that work on at least one section of the power line will begin next year. Sanosyan mentioned that there are two companies that should submit price offers, after studying which one of them will be recognized as the winner.
The project for the construction of the North-South energy corridor, designed to unite the electric power systems of Iran, Armenia, Georgia and Russia, has encountered a number of problems. Initially, the construction projects of 400/500 - kilovolt power lines Iran-Armenia and Armenia-Georgia were planned to be completed by the end of 2019. Meanwhile, as of today, work on the Iran-Armenia power line has been completed by 20-25%, and the construction of the Armenia-Georgia power line has not yet begun.
According to the project, it is planned to build a 400 kV Iran-Armenia and 500 kV Armenia-Georgia power line. For these purposes, it is planned to build 2 Ayrum and Ddmashen electrical substations on the Georgian border. According to the FICHTNER Company the preliminary cost of the Armenia-Georgia power transmission line construction program is 326.9 million euros, 10% of which should be part of the Georgian contribution. For these purposes, three loan agreements were signed in 2014-2015. In particular, the German KfW bank allocated 168 million euros in the form of a loan, and another 10 million euros will be provided by the European Investment Bank. It is expected to receive another 10 million euros in grant from the European Commission. As for the Iran-Armenia high-voltage power line, this project is financed by the Iranian side, the total cost of the program is $107 million. However, taking into account the new sanctions imposed by the United States against Iran, there is concern about a reduction in the volume of this investment program.
Source:finport.am
October 27, 2023 Armenia interested in Black Sea Energy project
Armenia is interested in the Black Sea Energy project, the Armenian and Hungarian FMs, Ararat Mirzoyan and Peter Szijjarto, stated at a joint press conference.
Mirzoyan said that during the meeting in Yerevan, the agenda of Armenian-Hungarian relations was discussed and mutual readiness was expressed to develop and expand bilateral ties in various fields. According to him, prospects for the development of cooperation in the energy sector were indicated, and the importance of decentralized interaction and inter-parliamentary relations was indicated.
According to him, issues related to the expanding relations between Armenia and the EU were also discussed at the meeting, and confidence was expressed that interaction based on the logic of stimulating regional economic ties, including with the assistance of the European Union, will have its own positive logic. Mirzoyan said that he also discussed with Mr Szijjarto the issue of involving Armenia in projects implemented in the region. And in particular, the involvement of Armenia in the Black Sea underwater electric cable project. He recalled that the head of the European Commission promised to provide assistance in this matter on October 5 in Granada.
Mirzoyan added that other issues of EU-RA cooperation were discussed at the meeting, expressing gratitude to the Hungarian side for participating in the civil mission of the European Union on the territory of Armenia.
The leaders of Azerbaijan, Georgia, Romania and Hungary signed an agreement on Saturday on the construction of an electric cable running under the Black Sea to carry green Azeri energy from planned Caspian Sea windfarms to Europe.
The agreement involves a 1,100 km (685 mile), 1,000 MW cable running from Azerbaijan to Romania as part of wider European Union efforts to diversify energy resources away from Russia amid the Ukraine war.
"To integrate a growing share of renewables, we indeed need stronger electricity interconnections. And this is why the Black Sea electric cable between Romania, Georgia and Azerbaijan is so important. And I can only say: What an ambitious project. It would connect us on both sides of the Black Sea and run further towards the Caspian Sea region - both for digital communication and for energy. It will help reinforce our security of supply by bringing electricity from renewable sources to the European Union, via Romania and through Hungary," European Commission President Ursula von der Leyen stated at the signing ceremony.
Source:finport.am
September 13, 2023 First floating solar photovoltaic plant installed on Yerevan Lake
The first floating solar photovoltaic plant with 151 kW capacity, has been installed on Yerevan Lake.
The launch ceremony was attended today by Minister of Territorial Administration and Infrastructure Gnel Sanosyan, Vice Mayor of Yerevan Tigran Avinyan and French Ambassador to Armenia Olivier Decottignies.
The plant was built by the French company NEPSEN. The project was initiated by the Armenian Renewable Energy Foundation with the financial support of the French government.
"Although the capacity of the floating solar power plant is small, but such plants help to expand the prospects of renewable energy development in Armenia. We are confident that similar projects will have a positive impact and contribute to the development of the industry and strengthening of Armenia's energy security," Sanosyan said.
He emphasized that the Armenian government pays great attention to the development of alternative energy in Armenia.
Some AMD 90 million was spent on the purchase of equipment from France. ($1 - 385.84 drams).
Source:arka.am
September 5, 2023 Tender for construction of Caucasus Power Transmission Network in Armenia to be finalized by the end of the year
A tender was announced for the construction of the Caucasus Power Transmission Network in Armenia, which will allow establishing an additional power transmission channel with Georgia.
Deputy Minister of Territorial Administration and Infrastructure Hakob Vardanyan told ARKA news agency in an exclusive interview that the tender will be finalized in 4 months.
He said as part of the network a substation is to be bolt in Ddmashen village, a 100 km long power line will be laid to Ayrum, a DC converter station will be installed and the power line will be extended to the Georgian border (another 7 km), and connected to the 500 kV Marneuli substation in Georgia.
"The new transmission line will provide a transmission capacity of 350 MW," Vardanyan noted.
The project is financed by German bank KfW. "This is a rather long-standing project worth 188 million euros, however, in all likelihood, its cost may increase. That is, we will need to attract additional financial resources," the deputy minister added.
He noted that European and Indian companies are participating in the tender (there are no Armenian participants due to their non-compliance with the conditions set forth).
"If we receive the results of the tender by the end of the year, design and calculation will start by the spring of 2024 and by the end of next year, theoretically, we will be able to start construction of the network," Vardanyan said.
Armenian-Georgian power transmission lines
Of the three previously constructed power transmission lines between Armenia and Georgia, only Alaverdi power transmission line is actually functioning. And utilization of the Caucasus power transmission network will make it possible to establish a high-capacity energy corridor, linking the energy systems of 4 countries in the region - Iran, Armenia, Georgia and Russia.
Source:arka.am
September 5, 2023 EBRD First Vice President visits Caucasus
The EBRD’s First Vice President and Head of Client Services Group, Jürgen Rigterink, begins a week-long visit to the Caucasus on Monday, 4 September 2023. Starting in Armenia, the trip will continue in Georgia and finish in Azerbaijan
First Vice President Rigterink, accompanied by Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, will meet government officials, central bank governors, business leaders and representatives of international financial organisations in each country. He will also mark the handover between the outgoing EBRD Regional Director for the Caucasus, Catarina Bjorlin Hansen, and her successor, Alkis Vryenios Drakinos.
In Armenia, the First Vice President will sign a credit line with a local partner bank to further boost the development of the private sector. In Georgia, Mr Rigterink will launch a programme with one of the EBRD’s key partner banks as part of its commitment to supporting small and medium size enterprises. In Azerbaijan he will participate in the launch of the public-private partnership for technical and vocational education and training organised by the State Vocational Education Agency, aimed at strengthening skills capacity in the food production industry.
Ahead of the visit, Mr Rigterink said: “This visit is an opportunity to meet government representatives and members of the business community to discuss the priorities in the region, especially given Russia’s war on Ukraine and increasing economic uncertainty. The Caucasus is an important region for the Bank and we are committed to offering continuous support for the sustainable economic development in the region through our investments, advisory services and policy engagements.”
The EBRD has invested over €10 billion in 680 projects across the region, in both the private and public sectors.
Source:ebrd.com
August 29, 2023 Unique power unit for Armenia to be built on the basis of Hrazdan thermal power plant
A new 50 MW power unit, unique for Armenia, will be built on the basis of Hrazdan TPP. To finance this project, the Eurasian Development Bank (EDB) will provide a $26 million loan to H Energy Solutions (a subsidiary of Tashir Group).
"The gas piston power unit will be the first of its kind in Armenia and also the first to be built without government guarantees for the purchase of the generated electricity. This means that the company will build the unit at its own risk to sell electricity on the wholesale electricity market," Deputy Minister of Territorial Administration and Infrastructure Hakob Vardanyan told ARKA news agency in an exclusive interview.
According to him, this is one of the first achievements of the local market after Armenia's transition to market relations (liberalization and trade) in February, 2022.
"Previously, the government provided purchase guarantees for the construction of such production facilities, committing to purchase all products within a certain period, say 20 years. In this case there are no obligations on the part of the government. The company will sell electricity under a simplified procedure," the deputy minister explained.
Vardanyan noted that he has no information about the cost of this project, since it is a private one and the government has no obligations. As for the construction, he said the earth work, which does not require a permit, has already started at the site of the operating Hrazdan TPP.
"The company has not yet applied for a license, but we should not expect any difficulties. There are no grounds for refusing it ," Vardanyan said.
According to him, the construction of the new unit is expected to be over in July or August 2024, after which it will be connected to the power grid. This process will take 2-3 months, and the new unit will be put into operation in September or October in 2024.
The peculiarity of this type of power unit, as Vardanyan explained, is its flexibility and maneuverability. If necessary, it can be quickly connected to the power system to cover the peak power load or be shut down.
The fate of the current Hrazdan TPP
According to Vardanyan, the current Hrazdan TPP should be shut down and dismantled in the future. However, according to him, the problem is that it still serves as a reserve power plant - the energy system needs such small capacities.
"This thermal power plant is now used only for regime regulation - out of two 200 MW units, only one is mainly in operation at 150-160 MW capacity, which drops to 90 MW at night hours. Its role is decreasing from year to year and in the future it will be replaced by another, more flexible plant, while the new 50 MW unit is quite suitable for these purposes," the Deputy Minister noted.
About the thermal power plant
The Hrazdan Energy Company (Hrazdan Power Plant) was established in 2004 when its authorized capital was replenished with the property of the Hrazdan thermal power plant, which was transferred by Armenia into the ownership of the Russian Federation as repayment of the state debt. Since March 2017, it has been owned by CJSC Tashir Capital (part of Tashir Group). The plant has been in operation since 1966 (4 power units with a total capacity of 810 MW).
In the domestic market of Armenia it serves as a balancing plant, generating electricity for domestic consumption only when there are power shortages in the autumn and winter and when the nuclear power plant is halted for maintenance.
About EDB loan for the new unit
The loan agreement between the Eurasian Development Bank (EDB) and H Energy Solutions (Tashir Group) for $26 million to finance the construction of a new power unit at Hrazdan TPP was signed in July 2023.
The construction will utilize highly efficient modern equipment compliant with international environmental standards.
Electricity produced by the unit will be supplied both to Armenia's free competitive electricity market and for export. The project will strengthen the diversification of power generation in Armenia and increase its efficiency.
Source:arka.am
August 17, 2023 Armenia to receive 12 mln EUR loan from Germany for renewable energy development
Armenian Minister of Economy Vahan Kerobyan and German Ambassador to Armenia Victor Richter signed an agreement whereby Germany will provide a 12 million euro loan for the development of renewable energy.
"This is already the third stage of the loan agreement. About 120 million euros have already been provided in the first two stages. So this is not a new initiative, but a continuation of the program launched some time ago," Kerobyan said at the signing ceremony
He noted that the importance of the program has not only not decreased, but on the contrary, it has increased. "In Armenia, the interest in renewable energy is only growing as both individuals and companies seek to maximize energy independence and ensure the lowest possible production costs," he said.
Ambassador Richter noted that the funds will be managed by the German-Armenian Fund (GAF).
About GAF
The German-Armenian Fund was established in 1998 by the Central Bank of Armenia, the key partners are the Government of the Federal Republic of Germany and KfW Bank. The Fund's purpose is to support the financial system of Armenia by channeling funds received from external and internal resources into lending to specific sectors of the economy.
Source:arka.am
August 9, 2023 In cooperation with French Solges Energy first hydrogen station to be built in Armenia
The Renewable Resources and Energy Efficiency Fund of Armenia and the French Solges Energy Group CJSC signed a Memorandum of Understanding aimed at developing innovative, renewable energy in Armenia, according to which it is planned to build the first demonstration hydrogen generation station in the Republic of Armenia.
According to the Fund, the project also provides for the development, construction and operation of an innovative smart grid for alternative energy generation.
The project budget has not been announced.
Source:finport.am
July 31, 2023 Some $140 million to be invested in modernization of Sevan-Hrazdan HPP cascade by 2033 - EDB review
The International Energy Corporation (IEC) in Armenia will invest $140 million in the modernization of Sevan-Hrazdan cascade of HPPs in 2024-2033, according to the Eurasian Development Bank's (EDB).
Out of the total amount some $76 million will be channeled into the re-equipment of Argel HPP, $36 million into the reconstruction of Arzni HPP, $20 million will be spent on the modernization of Hrazdan HPP and $8 million will be used to re-equip the Sevan HPP.
The International Energy Corporation CJSC manages assets of Sevan-Hrazdan HPP cascade with total installed capacity of 561.4 MW (it consists of 7 HPPs and 17 canals irrigating Ararat valley). The company, registered in May 2003, was acquired by Hrazdan Energy Company (HrazTES), a member of Tashir Group of Companies, in 2020.
Source:arka.am
June 16, 2023 AMD 20 bln will be allocated for construction of new natural gas distribution stations in Yerevan
The existing natural gas supply network in the capital Yerevan can no longer meet the needs, and there are problems in connecting new users and new buildings to it, Territorial Administration and Infrastructure Minister Gnel Sanosyan said at the government session on Friday According to him, in all, there are applications for connections from 490 new users.
Sanosyan also stated that implementation of a project designed for construction of new natural gas distribution stations in Yerevan will also improve the quality of gas supply for current users, as there are problems with pressure in the system due to the overloaded network.
The project is to kick off in January 2024 and be completed in December 2026. The plan is to create a 20% overcapacity, which will allow more new users to be connected in the future. Under a draft decision of the government the total cost of the project is 20 billion 48 million drams. ($1 - 386.54 drams).
Source:arka.am
June 8, 2023 EDB is launching a project to expand transport and logistics infrastructure at Upper Lars checkpoint
The Eurasian Development Bank (EDB) is in the process of preparing and launching the "Development of transport, logistics and road infrastructure in the direction of the Upper Lars checkpoint of the Republic of North Ossetia-Alania" investment project. As an ArmInfo correspondent reports, a corresponding memorandum of cooperation was signed with the Joint-Stock Company Northern Caucasus Resorts during the Eurasian Congress -23.
As part of the implementation of the memorandum, interaction will be carried out to develop options for the financial and economic model and structuring the investment project, as well as other measures to ensure the necessary funding. At the same time, the EDB Technical Assistance Fund intends to provide a grant for the development of a feasibility study for expanding the border crossing. The Upper Lars International Automobile Checkpoint and the transport and logistics infrastructure adjacent to it are important elements of the North-South road corridor, which is part of the Eurasian Transport Framework. This route is currently the only land route for Armenia that provides trade and economic ties with other EAEU member states. In addition, through the Upper Lars checkpoint passengers and cargo are transported between Belarus, Georgia, Russia and Turkey. The volume of such traffic has increased significantly over the past year.
The project amount is up to $200 million. Preliminary participation of the EDB is $150 million, which will be allocated from the EDB Technical Assistance Fund. A feasibility study is being developed for a project to create a modern logistics hub, which will increase the flow of goods along the international North- South Transport Corridor (INSTC). The implementation of the project will qualitatively improve the conditions for crossing the border for drivers engaged in international road transport, as well as for passengers through the creation of safe parking areas, ancillary service infrastructure, which, in turn, will have a significant positive impact on the time of crossing the border and on traffic safety on this important transport corridor, especially in winter, when weather conditions worsen and a significant amount of vehicles may accumulate at the entrances to the border crossing. The project involves the building of a secure parking lot for 350 cars, a hotel, a modular office building to accommodate organizations for the provision of customs services and services, a maintenance area for cars, gas stations, an area for charging electric vehicles, a tourist information center, shops, cafes, etc.
A multifunctional wholesale distribution center will also be built, which will provide storage of food products with a constantly maintained temperature regime, including freezers.
The investment project has a national and regional scale, the new transport and logistics infrastructure should become part of the state (regional) transport system and play a strategic role in the Eurasian transport framework, which ensures the connection of the "North - South" and "East"- West" transport corridors passing through the Caucasus region. The project will ensure the volume of trade, international transportation and transit, increase of new jobs in the region and increase of business income, expanding the range and improving the quality of the services provided. The Eurasian Transport Framework is a key investment mega-project financed by the EDB, consisting of a pool of projects aimed at developing international transport corridors in the Eurasian space to increase transit potential and increase export-import cargo traffic. Among the projects included in the framework in which the EDB has taken or is taking part are the Western High-Speed Diameter (WHSD) in St. ring road (BAKAD), "Nur Zholy"border crossing at the Kazakh-Chinese border, reconstruction of Almaty airport, construction of an airport in the city of Turkistan, establishment of the Ayagoz-Bakhty railway line in Kazakhstan. The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 16 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries - Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank's operations are guided by the UN Sustainable Development Goals and ESG principles.
Source:finport.am
June 5, 2023 Armenian to announce tender for fourth tranche of North-South international transport corridor project
The Armenian government will announce soon a tender for the fourth tranche of the North-South international transport corridor that includes the Sisian-Kajaran section, Armenian Finance Minister Vahe Hovhannisyan told the parliament today.
The minister said that there are three financing parties: the European Bank for Reconstruction and Development, the European Investment Bank and the Asian Development Bank.
According to him, the projected cost of the tranche is about $1 billion, however, the exact cost will be determined at the tender stage.
"I hope that this year we will review the tender results and announce the winner so that be able to start the construction work next spring ," he said.
The goal of North-South transport corridor project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and broader region.
The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia.
Source:arka.am
May 30, 2023 PSRC: there are opportunities in Armenia for construction of solar power plants with a total installed capacity of up to 1 thousand megawatts, but...
In Armenia, there are opportunities for the construction of solar power plants with a total installed capacity of up to 1,000 megawatts.Chairman of the Public Services Regulatory Commission (PSRC) of the Republic of Armenia Garegin Baghramyan stated on May 30 during the budget discussions in the commissions of the National Assembly.
However, as the head of the PSRC noted, at present there is no technology in Armenia for the accumulation of electricity from solar energy facilities, despite their rapid development in the world. For this reason, the PSRC is preparing a regulatory project, according to which, if an investor builds a solar power plant together with a storage unit, the restriction of 1 thousand MW will not apply to it. Baghramyan also noted that solar energy facilities have the opportunity to refuse price guarantees provided by power grids and start selling their products to direct buyers, but in an amount not exceeding 30 MW, due to the limited capacity of the energy infrastructure.
Source:finport.am
May 18, 2023 Armenia resumes construction of Kaps Reservoir after 30-year halt
The construction of the Kaps Reservoir in Armenia’s Shirak Province has commenced after a 30-year halt.
The €120,000,000 project envisages two stages – first, the construction of a reservoir with a capacity of 25 million cubic meters, and the second stage will increase the capacity to 60 million.
The Kaps Reservoir will be located 22 kilometers north of Gyumri, on the Akhuryan floodplains.
Authorities had planned its construction back in 1985 to provide irrigation water for over 30,000 hectares of land, but the project was halted in 1993 due to the worsening economic situation following the 1988 Spitak earthquake and the collapse of the USSR.
“Today marks the beginning of a very important and significant event for us,” Deputy Prime Minister Tigran Khachatryan said at the groundbreaking ceremony. “After many years of halt, the construction of Kaps Reservoir is finally commencing, and commissioning it will lead to key changes in the social and economic life,” he said, adding that the reservoir will become the required prerequisite for sustainable agriculture in many towns and villages.
Minister of Territorial Administration and Infrastructures Gnel Sanosyan, foreign ambassadors and representatives of the contractors and financing organizations were also present at the event.
The first stage will allow saving 1,3 million kWh of power annually by way of switching from manual to automatic irrigation. The projected power saving will reach 11 million kWh under the second stage. Thousands of hectares of lands will be ensured with irrigation water as a result, leading to increased agricultural output.
Noting that the government attaches great importance to constructing reservoirs, Minister Sanosyan said that Kaps will save water, ensure irrigation of new areas, save electricity and also have positive impact in terms of tourism and other areas.
The project is implemented with the loan resources provided by KfW Development Bank and co-funding by the Armenian government. The contractor is the Chinese Shanxi Construction Investment Group Co.
The construction is planned to last three years.
Moreover, a new village is being built nearby because the reservoir’s area will encompass parts of the Jradzor village.
Source:armenpress.am
May 15, 2023 Eurasian Development Bank ready to invest $100 million in Armenia projects
The Eurasian Development Bank (EDB) is ready to release $100 million in fresh loans to finance a number of infrastructure projects in Armenia's energy and transport sectors in 2023-2024.
"Last year was quite good in terms of our cooperation with Armenia, and we would like to maintain the same pace this year," EDB deputy chairman Denis Ilyin told Armenian journalists on the sidelines of the 46th annual meeting of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) held on May 15-17 in Kazakhstan's Almaty.
Ilyin said that traditionally the EDB in Armenia emphasized cooperation with banks, but the situation is changing. According to him, last year only $5mln of the $100mln financing went to projects with Armenian banks, while the rest went to the real sector of economy.
Nikolai Podguzov, Chairman of the EEU Board, pointed out the importance of the project to modernize and expand the capacity of the Upper Lars checkpoint (located on the Russian-Georgian border, which is the only overland road for Armenia to Russia).
"We have expressed interest in participation in this project, but here it is necessary to have a project operator that will prepare all the necessary documentation and an economic model for financing. When the idea turns into a project with a developed feasibility study, then we will talk about it," Podguzov said.
EDB Deputy Chairman Ilyin confirmed the bank's interest in participating in the modernization of the Yerevan Metro.
"It is a very important project. We are ready to provide financing both for research and development of pre-project documentation. Our bank cannot work on the level of talks, concrete documents and financial model are necessary," Ilyin specified.
In 2022 the Eurasian Development Bank (EDB) signed agreements to finance projects in Armenia worth about $100 million.
Under the first agreement the EDB is to provide $30 million to the Tashir group of companies for the introduction of international management standards and automated accounting systems in Armenia.
According to the second agreement, signed with the New Energy group of companies, the EDB will allocate up to $37 million to finance the construction of 11 solar power plants with a total capacity of up to 65 MW. They will be located in the Gegharkunik and Aragatsotn regions of Armenia.
The third agreement, signed with Yeremyan Projects LLC, is aimed at ensuring food security and sustainable economic development of Armenia in the agro-industrial complex. The bank will allocate $25 million for these purposes.
Source:arca.am
May 11, 2023 Environment Ministry, KfW sign agreement for implementation of EUR 26 million program
Environment Minister Hakob Simidyan received Frank Merschl, Senior Program Portfolio Manager of the German Credit Recovery Bank (KfW), and Zara Chatinyan, the bank's representative in Armenia. Deputy Minister Aram Meymaryan took also attended the meeting.
According to the press service of the environmental department, welcoming the guests at the Ministry of Environment, Minister Simidyan once again touched upon the Armenian-German cooperation in the field of the environment and, in particular, the long-term effective cooperation between the German Credit Recovery Bank (KfW) and the Ministry of the Environment.
The Minister summed up the agreements reached during the previous meeting and positively assessed the progress.
"I would like to thank the German government and the German Credit Recovery Bank (KfW) for this important program for the environment of the Republic of Armenia. Our programs need to be made more dynamic, there are all conditions for this and cooperation relations have been formed. I hope the program will serve its purpose" and we will have visible results in the near future," the minister said.
During the meeting, the sides touched upon the "Biodiversity and Sustainable local development in Armenia" program, the total budget of which is about 26 million euros, provided by the German Federal Ministry for Economic Cooperation and Development (BMZ) through KfW.
Deputy Minister Aram Meymaryan, who is the coordinator of the program, presented the ongoing work on signing the agreement.
Minister Hakob Simidyan highlighted the priority areas to focus on after the launch, in particular, the component of flora and fauna accounting. The Minister noted that for the effective implementation of the ongoing reforms and measures, the Ministry urgently needs accurate data.
At the end of the meeting, the parties confirmed their readiness to promote programs and promote sustainable environmental management.
Source:finport.am
April 13, 2023 Final hearings on EIA on construction of "Ayg-1" photovoltaic plant to be held in May
On April 12, the fourth public hearings on the Environmental Impact Assessment (EIA) on the construction of the "Ayg-1" photovoltaic plant, a joint project of the Armenian National Interests Fund (ANIF) and Masdar Company from Abu Dhabi, UAE was held in Dashtadem and Talin communities of the Aragatsotn region of Armenia. This is stated in the message of the Armenian National Interests Fund (ANIF).
"Ayg-1" will be the largest solar plant in Armenia. The Government of Armenia has set a target of reaching its renewable energy production to 15% of the overall capacity by 2030. "Ayg-1" will provide for half of this target. The representatives of "EA Energy Advisory" consultancy group, coordinating the EIA works and Masdar, presented to the residents of the affected communities a brief description of the activities and planned measures for the assessment of possible environmental and social impacts. Representatives of communities, community leaders, as well as representatives of environmental non-governmental organizations were present in both communities.
Masdar representative Carlos Ponte, informed that the solar plants do not have any impact on people's health. Only 6 and 17 percent of the total pasture area of the affected Talin and Dashtadem communities, accordingly, will be used for the construction. Carlos Ponte also clarified the proposed community social support programs. After the presentation of the EIA, the representatives of Masdar and "EA Energy Advisory" answered to the questions, which mainly related to the company donation and general financial allocations provided to the community within the framework of the project. Questions were also raised regarding the start of construction works, the involvement of labor at various stages of the project implementation and the planning of access to the roads during construction. The final hearings are scheduled to be held next month, after which the EIA will be submitted to the Ministry of Environment for approval. After the approval of the EIA by the Ministry, Masdar will announce a tender for the selection of the construction company for the project. About 200 million US dollars will be invested for the construction of the 200 MW Ayg-1 photovoltaic power plant, and the tariff for the produced energy will be 0.0290 USD per kilowatt hour (kWh). 85 percent share of "Masdar Armenia" joint venture belongs to Masdar, while 15 percent is owned by ANIF. The project is planned to be operational in 2025.
Source:finport.am
March 25, WB approves new EUR 92.3 million loan to promote Green, Resilient and Inclusive Development in Armenia
The World Bank's Board approved today a new EUR 92.3 million (US$100 million equivalent) loan for the Armenia Green, Resilient and Inclusive Development Policy Operation (DPO). This is stated in the message of the WB.
The operation supports the 2021-26 Program of the Government of the Republic of Armenia and is aimed at promoting green, resilient, and inclusive development by: (i) improving the regulatory framework for environmental management to help Armenia mitigate and adapt to the pressures of climate change; (ii) enhancing equity and promoting human capital development; and (iii) supporting the anti-corruption framework and justice sector efficiency.
"This operation is a testament to the government's reform commitment to making growth more inclusive and sustainable," said Carolin Geginat, World Bank Country Manager for Armenia. "The operation supports critical reforms to support Armenia's human capital, including the adoption of the education strategy and improving the targeting of social assistance. For the first time, a World Bank budget support operation in Armenia also includes reforms to support the country in its efforts to mitigate and adapt to the increasing pressures of climate change."
Key reforms supported under this operation are aligned with the World Bank's Country Partnership Framework for 2019-23. They include the reform of the public investment management framework to ensure systematic climate screening of public investments; revision of the Environmental Impact Assessment (EIA) and Atmospheric Air Protection (AAP) laws; deployment of a new system for improved targeting of social assistance; modernization of the education curriculum, including for Science, Technology, Engineering, and Mathematics (STEM) and green education and revised laws on mediation and arbitration to enable greater efficiency in the functioning of the justice system.
This EUR 92.3 million (US$100 million equivalent) loan is an IBRD flexible loan with variable spread, with a 5-year grace period and a total repayment term of 19 years. This is the first operation in a programmatic series and is supported by parallel financing of EUR 50 million ($53.7 million) provided by the OPEC Fund for International Development, a multilateral development finance institution headquartered in Vienna, Austria.
Since joining the World Bank in 1992, commitments to Armenia have totaled around $2.53 billion.
It should be reminded that the proposal to conclude a loan agreement was approved at the meeting of the RA government on March 23. Since Armenia joined the World Bank in 1992, the total amount of loans and grants issued to the republic amounted to about $2.53 billion.
Source:finport.am
March 2, 2023 Land has been allocated for the implementation of the “Ayg-1” project
Today, the Government of Armenia made a decision to accept as a donation to the Republic of Armenia the plots of land with a total area of 169.8614 hectares owned by the Talin community and attach them as state property to the state property management committee of the Ministry of Territorial Administration and Infrastructure. After the adoption of the decision, the State Property Management Committee must ensure the signing of the land donation agreement with the head of the Community and the State Registry of Property Rights within 10 days, after which the addition of land plots to the statutory capital of ANIF must be carried out within 7 working days.
The process is carried out within the framework of the joint implementation of the “Ayg-1” photovoltaic project by the Armenian National Interests Fund (ANIF) and Masdar (United Arab Emirates). “Ayg-1” project, is a 200 megawatt solar power plant in the territory of Dashtadem and Talin communities of Aragatsotn region. The overall investment size is around 200 million USD.
The project reaffirms the government’s commitment to the development of renewable energy. It is planned to build up to 1000 MW of solar capacity, including autonomous ones, with the aim of increasing the share of solar energy production to at least 15 percent of the total by 2030.
The project has a strategic importance, both in terms of investment and also in terms of increasing the share of renewable energy in the total energy balance of the Republic of Armenia, while increasing the level of energy security and independence.
Source:anif.am
February 9, 2023 Armenia, US are expanding cooperation in field of atomic energy use
Armenia and the United States are expanding cooperation on the regulation of nuclear and radiation safety in the field of the use of atomic energy. On February 9, at a government meeting, the Armenian government approved the proposal to sign an agreement "On the exchange of technical information and cooperation on nuclear safety issues between the Nuclear Safety Regulatory Committee of the Republic of Armenia and the Nuclear Regulatory Commission of the United States of America".
As stated in the explanation to the document, the Nuclear Safety Regulatory Committee of the Republic of Armenia has been cooperating with the Nuclear Regulatory Commission of the United States of America since 1995. On September 30, 1997, an Agreement was signed between the Nuclear Regulatory Commission of the United States of America and the Nuclear Safety Regulatory Authority of the Republic of Armenia on technical cooperation in matters of nuclear safety. The agreement was re-signed in 2007 and 2017.
Within the framework of the abovementioned Agreement, Armenia received support in the following areas: training and education of personnel (thermal-hydraulic, neutron-physical and emergency calculations of NPPs using modern computer codes, development of regulatory requirements presented in the NPP SAR, physical protection of NPPs and nuclear materials, seismic safety of NPPs ); expert support (assessments and analyzes of NPP safety, development of regulatory and technical documents); safety assessment and licensing of NPP SNF dry storage, probabilistic NPP safety analysis; provision of modern instruments and equipment; inventory, registration and development, maintenance, safety assessment and licensing of the national register of sources of ionizing radiation in Armenia; development of regulatory documents on the safety and physical protection of ionizing radiation sources, etc. The current Agreement expired on March 29, 2022.
In December 2021, the Committee received a proposal from the US Nuclear Regulatory Commission and received a proposal to conclude a new Agreement, which, in addition to the directions established by previous agreements, expands cooperation on the regulation of nuclear and radiation safety in the field of the use of atomic energy.
The contract consists of 4 sections (with its subsections) and one application. The new Agreement will promote the exchange of best practices and knowledge on security issues, the introduction of new technologies.
The scientific and technical assistance received under the agreement will contribute to physical protection, the implementation of guarantees for the nonproliferation of nuclear weapons, the safety of radioactive materials and waste, the implementation of environmental monitoring, and the development of regulatory documents on safety.
The conclusion of the agreement is expedient for the further development of the sector of the use of atomic energy in Armenia>, the document reads.
Source:finport.am
January 18, 2023 EBRD: Armenia has great potential in development of solar energy
Armenia has great potential when it comes to the development of renewables, in particular solar energy, and we want to help Armenia scale up its renewable energy generation,
European Bank for Reconstruction and Development (EBRD) Vice President Mark Bowman said in an exclusive interview with ARKA news agency.
He said EBRD has been working with the government of Armenia on financing electricity networks, private generation and privatization.
‘We have also improved the regulatory and institutional framework for sustainable energy. Consequently, Armenia now allows solar energy producers to sell excess electricity to the national electricity grid,’ he said.
He recalled that the government’s Energy Sector Development Strategic Plan 2040 includes development of up to 1,000 MW Solar capacity by 2030 and up to 500 MW Wind capacity by 2040. Over the past few years, the government has also improved the public private partnership law.
‘We stand ready to further support these initiatives, which will undoubtedly increase energy independence of the country and contribute to grow the private sector and attract foreign investments,’ he said.
You can read the interview in full here
Source:arka.am
January 16, 2023 Armenian Deputy PM and EBRD Vice President discuss upcoming projects in private and public sectors
Deputy Prime Minister of Armenia Mher Grigoryan received on Monday a delegation led by Mark Bowman, EBRD Vice President for Policy and Partnerships, who have arrived in Armenia as part of a regional visit, government's press service reported.
The purpose of the trip is to discuss upcoming projects in both the private but also public sectors. Discussions on financial resilience, policy reform and the preparation for the Bank’s upcoming new country strategies are also on the agenda.
During the meeting the sides discussed the course of programs implemented in Armenia jointly with the EBRD.
The Deputy Prime Minister attached a special importance to cooperation between the EBRD and Armenia's private sector, highlighting the importance of it from the viewpoint of development of entrepreneurship culture and transparency of business.
The interlocutors exchanged also views on cooperation in the development of infrastructures, particularly in such areas as road construction and energy. They also touched upon the role of EBRD in the development of stock market.
The EBRD delegation will also have meetings with diplomats, international development partners, leaders of the business community and the Bank’s existing partners. The team will also visit the Central Bank of Armenia to meet the Governor and his Deputy.
Since the start of its operations in Armenia in 1992, the EBRD has invested more than €2 billion in 204 projects in financial, corporate, infrastructure and energy sectors, with the majority of these investments in the private sector.
Source:arka.am
January 13, 2023 EBRD Vice President and Managing Director to visit Armenia, Georgia and Azerbaijan
European Bank for Reconstruction and Development (EBRD) Vice President for Policy and Partnerships Mark Bowman and Managing Director for Eastern Europe and the Caucasus Matteo Patrone will tour the Caucasus from 16 to 19 January, first visiting Armenia, then Georgia, before concluding their trip in Azerbaijan.
The visit follows EBRD President Odile Renaud-Basso’s recent tour of the Caucasus in September. The purpose of the trip is to discuss upcoming projects in both the private but also public sectors. Discussions on financial resilience, policy reform and the preparation for the Bank’s upcoming new country strategies are also on the agenda.
The delegation will first travel to Yerevan, where the EBRD representatives will meet Armenia’s political leaders. The visit will include meetings with diplomats, international development partners, leaders of the business community and the Bank’s existing partners. The team will also visit the Central Bank of Armenia to meet the Governor and his Deputy.
On the Georgian part of the trip, the delegation will hold high-level meetings with Georgia’s political leadership. EBRD representatives will also meet diplomats, regional heads of international financial institutions and the secretariat of the Investors’ Council of Georgia.
While in Tbilisi, Mr Bowman is also expected to sign a sovereign loan agreement with the Ministry of Finance of Georgia for the rehabilitation and upgrade of up to 12 metro stations in the capital.
The delegation will conclude its trip in Baku, where EBRD representatives will meet Azerbaijan’s political leadership. The visit will include meetings with representatives of the diplomatic community, international development partners and the Bank’s existing business clients. The team will also visit the Central Bank of Azerbaijan.
Since the start of its operations in the Caucasus in 1992, the EBRD has invested more than €10 billion in over 650 projects in the region’s financial, corporate, infrastructure and energy sectors, with the majority of these investments in the private sector.
Source:ebrd.com
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