In recent years, the prices of solar (PV) power technology systems has been decreased by 80%, consequently the volume of capital investments too. Today electricity production in utility-scale solar PV power technology is competitive compared with available power generation other technologies.
Preliminary assessments indicate that in the result of price abatement of PV technology and using funds from Scaling up Renewable Energy Program (SREP) under the Climate Investment Funds (CIFs) or attracting additional mild funding, it is possible to get competitive prices for PV power plants in the energy system. Competitive prices will exclude a negative impact on the consumers, which will enable construction of more powerful plants and cause interest within some of the world famous companies.
In order to develop solar PV technology, the Government of Armenia has applied the Scaling up Renewable Energy Program for Low Income Countries (SREP) under the Climate Investment Funds (CIFs) for the provision of concessional funding. Renewable Energy Investment Project (IP) was approved by the financing organization on June 27, 2014. According to one of the components of the Investment Project, the Climate Investment Funds (CIFs) and the World Bank (WB), allocate grant and soft loans to the Government of Armenia for the construction of the first solar PV plants and for the expansion of the PV technology in the country.
For the preparation of the project, Armenia Renewable Resources and Energy Efficiency Fund (hereinafter R2E2) now implements the Project Preparation activities supported by the WB grant in amount of $ 2 million within the framework of the Investment Project.
In the framework of the project preparation, the international consulting company made a solar map of Armenia using satellite data. The adjustment is carried out based on the measurement of solar potential in four locations using the latest available equipment.
6 sites have been selected for the construction of solar PV plants. It is possible to install solar PV plants of about 110 MW total capacity at selected 6 locations. Spanish Ares Engineering has already implemented and submitted feasibility studies for the selected sites. Selected sites are community-owned, and their dimensions and details are provided in feasibility study.
The Government of the Republic of Armenia is planning to announce a tender for the Project implementation to define a minimum tariff. The tender and the construction of six plants will be carried out in several stages. It is envisaged to implement the construction of Masrik 1 plant on the first stage, and the construction of the remaining five stations during the next stages.
Technical specifications have been developed in 2016.
These values may vary, as the prices of solar systems in the global market have declined over the years.
It should also be noted that there has been a shift in solar electricity tariffs in Armenia.
Some technical and economic guidance indicators
Masrik 1 – 55 MWp
FEASIBILITY STUDY 55MWp MASRIK 1 PV PLANT METS MASRIK (ARMENIA)
Masrik 2 – 19 MWp
FEASIBILITY STUDY 19.4MWp MASRIK 2 PV PLANT VARDENIS, GEGHARKUNIK MARZ (ARMENIA)
Gagarin – 15 MWp
FEASIBILITY STUDY 15.24MWp GAGARIN PV PLANT HRAZDANKOTAYK (ARMENIA)
Talin 2 – 12 MWp
FEASIBILITY STUDY 12.5MWp TALIN 2 PV PLANT ARCHADZORTALIN (ARMENIA)
Merdzavan – 5 MWp
FEASIBILITY STUDY 5.5MWp MERDZAVAN PV PLANT MERDZAVAN (ARMENIA)
Dashtadem – 12 MWp
FEASIBILITY STUDY12.5MWp DASHTADEM 1 PV PLANT DASHTADEM-TALIN (ARMENIA)
Expected results and benefits
Energy generation
The predicted annual electricity production in all six stations and carbon dioxide reductions are presented in the table below
| Location/community name | Installed capacity, /average/ (MW) | Annual electricity produced, /average/ (GWh) | Reduction of annual carbon dioxide emissions,/average/ (tons) |
| Talin 2 | 10 | 22 | 5427 |
| Masrik 1 | 50 | 90 | 22962 |
| Masrik 2 | 15 | 30 | 7515 |
| Gagarin | 17 | 25 | 6262 |
| Dashtadem | 10 | 13 | 3340 |
| Merdzavan | 7 | 11 | 2922 |
Social benefits
Job creation opportunities: It is planned to create about 400 short and long-term job opportunities during the construction and operation of solar PV plants. It is also important that educational institutions have significant research potential for the development of solar PV technology. Project implementation will promote further research and progress and will facilitate installation, production and transfer of operational capacity to the local market.
Energy security. Project implementation is targeted towards the development of solar energy state policy and it’s implementation mechanisms, diversification of economy, strengthening of economic and energy security and independence, energy system reliability improvement, creation of new technologies to promote energy efficiency and renewable energy development and organization of services, as well as reduction of man-made impact on environment and human health.