At the proposal of the Ministry of Territorial Administration and Infrastructure of the RA, Armenia Renewable Resources and Energy Efficiency Fund organized a tender for the construction of a 200-MW solar photovoltaic plant "Ayg-1". The plant will be built in Dashtadem and Talin communities of Aragatsotn Region, RA.
Based on the results of the pre-qualification process, three companies satisfy the conditions of the request for the pre-qualification considering the technical, legal, and financial evaluation of the bids:
The companies mentioned above have been invited to submit a request for a proposal. The tender is scheduled to be completed in the third quarter of 2021.
Under the Agreement signed between the Central Bank of Armenia (CBA) and German Kreditanstalt fuer Wiederaufbau (KFW) Bank, the Armenia Renewable Energy Development Project is being implemented, one of the objectives of which is to make loans available to private enterprises (Customers) for the construction of solar photovoltaic (PV) plants with a capacity of up to 500 kW.
Technical specifications and proposals of PV stations shall be checked by the Project Consultant Fichtner GmbH & Co. KG and its sub-consultant Armenia Renewable Resources and Energy Efficiency Fund (the R2E2 Fund). To this end, the Customer shall submit to the R2E2 Fund filled-in Questionnaire and documents specified in Annex 1 - Technical Requirements and recommendations for the implementation of ground-mounted and rooftop PV systems for own consumption over 150 kW up to 500 kW and Annex 2 Technical Requirements and recommendations for the implementation of ground-mounted and rooftop PV systems for own consumption up to 150 kW
Armenia Renewable Resources and Energy Efficiency Fund and National SDG Innovation Lab with the UNDP financing implements solar systems installation project in non-gasified communities in Armenia. The project envisages the installation of solar water heaters and PV systems for about 400 families in Gegharkunik and Shirak regions. The project will involve households from non-gasified communities of Gegharkunik and Shirak regions. ACBA Leasing CJSC and Global Credit Universal Credit Organization are accredited institutions to disburse credits under the project. Households residing in non-gasified communities and having 3 or more children will be financed for the installation of solar water heaters and photovoltaic panels (0% for 8 years). 100 households will be included in the project for the first year of project implementation. Armenia Renewable Resources and Energy Efficiency Fund will monitor the project implementation.
Meeting with solar system installation companies Workshop in Shirak regional administration within the framework of Innovative Solutions for Sustainable Development Goals in Armenia project Workshop in Gegharkunik within the framework of “Innovative Solutions for Sustainable Development Goals in Armenia” project Innovative solutions for SDG /sustainable development goals/ in Armenia projectArmenia Renewable Resources and Energy Efficiency Fund director Armen Melkikyan, "Agba Leasing" UCO CJSC director Arsen Bazikyan and “Global Credit” UCO CJSC director Luiza Igraryan signed “Energy Efficiency Improvement Project” for non-gasified communities in Armenia. The objective of the project is to improve energy efficiency in nearly 280 communities of Armenia and make investments for the development of clean energy through financial institutions.
About 37 thousand households are not gasified in Armenia. They are not included in the gasification projects due to their economic inefficiency. In order to improve the living conditions of the population in the communities, a working group was formed headed by the Minister of Energy infrastructures and Natural Resources of the RA Ashot Manukyan by the decision of the Prime Minister of the RA Karen Karapetyan. The representatives of different agencies, as well as the experts of the R2E2 Fund were included in the working group. Targeted measures aimed at solving the gasification issues in the communities have been developed, on the basis of which the contract will be implemented.
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 MWpLocation/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 |
The objective of Preparation of SREP Investment Plan for Armenia is to support the Armenian government in preparing a renewable energy investment plan for securing funding from the SREP. The plan should be comprehensive, clear and effective in demonstrating how SREP resources and other donor and private sector financing would be used in Armenia to overcome current obstacles to the wider penetration of renewable and low carbon energy.
The study will be conducted in two phases. Phase I will assess the potential and costs of applicable renewable energy technologies, prioritize potential interventions and facilitate discussions of these results with stakeholders.
Scaling Up Renewable Energy Program (SREP) Investment Plan for Armenia
Armenia Renewable Resources and Energy Efficiency Fund organized a workshop for the discussion of Preparation of Scaling-up Renewable Energy Program (SREP) Investment Plan for Armenia under the Climate Investment Fund, which was held on September 2, 2013. The Agenda of the workshop is attached below.
The Project Consultant Denzel Hankinson represented analyses of energy sector’s current situation in Armenia. He introduced energy sector of Armenia in details and planned electricity demand for the years 2013-2030. The participants discussed the submitted information after the report. The representatives of the World Bank, organizations implementing foreign projects in Armenia, NGOs, representatives of the Government and Banks, private investors, scientists took part in the workshop.
Renewable Energy Project in Armenia (WB/GEFTF-05211)
The Renewable Energy Project (REP), bearing TF-053910 index of Global Environmental Institution (GEF) and World Bank (WB), started in 2007. It was implemented by Armenia Renewable Resources and Energy Efficiency Fund. REP consisted of two main components – credit and grant components. REP financial funds were provided for supporting the construction of Small scale Hydro Power Plants (SHPP-s) in Armenia. The total REP credit package made about USD 15 mln. of which WB portion made USD5 mln. Another USD 3 mln. amount made the portion of Gafeschyan Family Fund (USA) and USD 7 mln. was the portion of EBRD.
At the expense of these funds 26 SHPP construction project has been carried out with 43 MW total capacity and about 160 thousand kWh annual production. Already 12 power plants out of the mentioned are in operation at present and the rest are in construction and licensing stages. Regular return of financial funds is being performed. The successful implementation of REP credit component set a good example for the start of several similar projects in Armenia: Armenian-German Fund, ArmCEEF European Project, IFC Project and etc., studies of fundamental importance in RE sector, studies on resources, evaluation of RE this or that type of technology potential and perspective availability and etc. Besides, the Fund outlined the direction and content of the envisaged studies, developed their terms of references, organized and implemented international and local tenders for choosing companies performing those studies, as well as conducted control of the work implementation and evaluation of adequacy of the resulted outcomes.
Upon the start of the works about 20 separate expensive international projects and special studies have been implemented within the frame of REP for most various directions of renewable energy (RE) in Armenia. Round 124 leading experts, of which 105 local and 19 foreign experts (from USA, Denmark, Switzerland, Sweden, Russia) have participated in these works. The conducted studies include such RE sectors like: SHPP-s, solar photovoltaic energy, bio-ethanol production, geothermal energy, development of norms and standards for some technologies of this sector, development of RE geographical-informative system, Assessment of peak electricity potential and hydro-accumulative station perspective availability for Armenian and regional markets and etc. The following studies implemented within REP framework were of special applicative importance, such as: development of the microprocessor-based relay protection system for energy absorption increase from RE sources, development of its estimated methodology and norms/standards (Project “Support to energy system regulation and protection in Armenia for energy absorption from RE sources”), as well as development of the Project for Emergency systemic automatics securing the safety of RE stations and reliability and efficiency of the works in the Armenian 2010-2016 energy system. Manuals resulted from those studies, are actively being used at present by the specialists of this field. Moreover, special studies have been conducted in the country aimed at taking actions for identifying and overcoming obstacles impeding the development, developing business plans for RE projects, defining supporting and financing mechanisms for their implementation. Also numerous activities, seminars, conferences, trainings, workshops and round tables for public and professional information have been held denoted to RE development in Armenia. For the first time in Armenia a number of biennale scientific meetings, exhibitions and activities have been organized entitled “The week of Renewable Energy”. At last the Renewable Energy Guideline Program (Road map) has been developed which is presented in this Reference Book. For a certain sense this Guideline Program unifies the results of REP and all other programs implemented so far and points out the RE development targets in Armenia and the ways to achieve them. The peculiarity of this Roadmap is the fact that as opposed to studies conducted so far, the RE development is considered here for the extended “energy” sector. Such an approach assumes the assessment of RE penetration level not only in electricity but also in thermal energy sector as well as in transport. Let us briefly touch upon some results from certain studies.
Small scale Hydro Power Plants (SHPP)
“SHPP Development Scheme of the Republic of Armenia” developed in 1997 was for a long time the only complete professional document for SHPP development in Armenia. Within the frame of REP the utter renovation and updating of this Scheme, during which some field investigations have been performed in 14 river basins of 9 provinces (marzes) of RA, collection of various types of data and their comparison has been conducted and a comprehensive analysis of the materials has been implemented.
As a result the Renovated and updated Scheme for RA SHPP has been prepared, which was confirmed by the Resolution of the RA Government. 115 new SHPP-s have been included in the Renovated Scheme, for which all main technical and economic parameters have been calculated. The presented table completes the received data. It should be mentioned that the plants of the SHPP Renovated Scheme are in general much more efficient plants that the previous scheme plants. Thus, although as compared with the previous scheme the total number of renovated SHPP has been approximately reduced twice (115 against 206), but the total installed capacity has been increased by about 24%- and has made 147 MW instead of previous 111 MW. And the total renovated SHPP production has been increased by 40% and has made about 540mln. kWh/y instead of 325 mln. kWh/y of the previous scheme. At present many of this Renovated Scheme SHPP-s – about 70plants are already in operation and/or in the stages of construction and licensing process.
Name of RA River Basins | Number of SHPP-s in the Basin | Total installed capacity | Average annual production | Number of working hours | SHPP factor |
MW | Mln.kWh | hour/year | % | ||
Debed | 33 | 25 | 91 | 3670 | 42 |
Aghstev | 23 | 34 | 130 | 3843 | 44 |
Akhuryan | 4 | 11 | 28 | 2521 | 29 |
Kasakh | 4 | 3 | 12 | 3570 | 41 |
Hrazdan | 4 | 4 | 13 | 3089 | 35 |
Lake Sevan | 11 | 10 | 43 | 4466 | 51 |
Azat & Vedi | 5 | 5 | 19 | 3728 | 43 |
Arpa | 4 | 12 | 35 | 2908 | 33 |
Vorotan | 5 | 10 | 43 | 4131 | 47 |
Voghji | 14 | 20 | 76 | 4009 | 46 |
Meghri | 8 | 13 | 50 | 3724 | 4 |
Total | 115 | 147 | 540 | 3677 | 42. |
Hydro-accumulative Plant Within the project of “Assessment of peak electricity potential and hydro-accumulative plant perspective availability for Armenia and regions” the peculiarities of the electricity load regimes in the Republic and regional countries have been studied. It has been stated the perspective availability of constructing a hydro-accumulative plant (HAP) in Armenia for which out of 11 sites 3 of them were chosen as perspective ones. The main installed parameters of HAP have been defined: 150 MW installed capacity with annual 440 mln.kWh production. In accumulative regime: 200mW installed capacity with 580mln.kWh annual consumption. The study results point out that although HAP is considered to be a net-consumer of electricity, anyway HAP will allow first to extend the technical regulation zone of the system capacity by 350 MW, then it will ensure the annual average loading of the main (base) plants, for instance ANPP, by 100 MW, thus increasing the annual production of the latter with about 700 mln. kWh. HAP will reduce the night losses in the Armenian Thermal power plants, it will increase the exportation volumes of electricity to Iran and other neighboring countries, will enhance the flexibility of the system regimes – setting up a base for the Armenian system to implement regional dispatching services and functions as well as I till essentially improve the general efficiency of the Armenian electrical system regimes.
Bio-ethanol During the studies for assessment of bio-ethanol production perspectives in Armenia by the first generation technology, 21 alant starch (inulin) containing different vegetation plants have been considered, of which 4 plants have been chosen for further consideration. It should be stated that in view of the international experience of bio-fuel production, the conducted study was based on the following directions: The fertile grounds of Ararat valley should not be used for bio-ethanol production in Armenia, it should not distort (damage) the endemic flora and it should not negatively affect on food production and prices. Therefore, during the study only non-irrigable grounds of upland zones and stable and resistant vegetation plants of the country have been evaluated. Feasibility studies for the projects of constructing two plants for bio-ethanol production working on forage maize and topinambur /girasole/. It has been pointed out the possibility of producing totally about 14 thousand tons of bio-ethanol annually from these plants, which will allow implementing about 5-10% displacement (saving) of total petrol consumption in the Republic. In addition to the conducted study, it was additionally performed with 2nd and higher technology generation by ARREEF specialists the evaluation of bio-ethanol production potential from cellulose stuffs. According to the resulted appraisals it is possible annually to implement up to 100 thousand tons of bio-ethanol production in Armenia, of which about 50 thousand tons of bio-ethanol can be exported to neighboring countries.
Geothermal Energy By geothermal energy utilization the electricity production is considered to be perhaps the only technology of the whole RE sector with which it is possible to provide with guaranteed electricity production for covering the baseline electricity load. You see solar, wind and small scale energies considered to be principally non-regulatory sources in this sense. Therefore, it is not surprising that a great attention is given to utilization of especially geothermal energy in Armenia. Within REP framework under a special study diverse and extensive data were consolidated and thoroughly analyzed on high potential geothermal energy sources available so far in Armenia. As a result, the two perspective sites were marked out for which the presence and availability of geothermal energy source with high potential had maximum feasibility. Special study projects were prepared for those sites. It should be underlined that the received results were so encouraging that the World Bank and international GEOFUND Fund additionally allocated to Armenia separate grant financing for complex investigations and explorations in two perspective sites (Gridzor, Karkar) of Syunik and Gegharkunik provinces of Armenia (GEF TF-092563). At present these works are in process.
Solar Photovoltaic (PV) Energy The main objective of this project implemented within REP framework was to support modern PV energy development in Armenia in the whole range of this sector based on “from raw material to market” principle in the assumption of providing final product and/or maximum surplus product formation direction in Armenia. During the works the presence of perspective raw material in Armenia was stated: quartzites, opalites, diatomites with economically significant volumes. Moreover, it was concluded that certain mine stuff of quartzite with their main features and negligible extent of mixtures can serve as a base for not only metallurgical and PV silicium but also for super pure silicium production. From the other side the potential of significant solar energy in Armenia (25% more than the average European indicator) and the availability of a relevant strategy aimed at developing this sector in this direction can stimulate involvement of local and international investments in this sector leading to establishing actually a new industrial field in the republic, which will contribute to stable development of economy and enhancement of energy safety level, will create new working places. In the assumption of economic profitability, expense data for organization of industry, based on its international experience and analysis of the world market prices, for the purpose of PV industry development in Armenia 12 modern technologies have been considered of which 2 perspective ones have been chosen. Separate scenarios have been considered for them. Scenario 1. In the process of Siemens Company- production of PV modules with totally 150MW/y volume. The proposed technological chain – quartzite mining, processing of metallurgical silicium, PV polysilicium production by trichlorine-silanе production and filtration, preparation of ingots, foils, solar PV elements and modules. The required investments for realization of this scenario will make about USD 230 mln. (USD of 2009). Scenario 2. Production of PE modules with totally 150MW/y volume in combination of polysilicium and deeply filtrated metallurgical silicium (FMG) The proposed technological chain – quartzite mining, processing of metallurgical silicium, production of FMG silicium and polysilicium, intermixture process, preparation of ingots, foils, solar PV elements and modules. The required investments for realization of this scenario will make about USD 200 mln. (USD of 2009).
The reports of all other studies and programs under the above-mentioned as well as REP can be loaded from ARREEF website or from RE internet portal of Armenia. Concluding the material I have a pleasure to underline that the implementation of such an extensive, complex and comprehensive studies would be impossible if not the devoted and professional work of the World Bank REP team in Armenia: A.Balabanyan, A.Kochnakyan, A.Astvatsatryan and Project Manager Mr. Gevorg Sargsyan, of the Ministry of Energy and Natural Resources of RA represented by the Deputy Minister Mr. Areg Galstyan, the support of specialists of RA other ministries and departments. REP implementation would be impossible without the daily professional, organizational and human assistance of the Manager of Armenia Renewable Resources and Energy Efficiency Fund Mrs. Tamara Babayan and the Fund staff. And at last I would like to express my deep gratitude to all our advisers and specialists from Armenia and foreign countries for their devoted, skillful and fruitful work in REP implementation. This is the very work that makes the warp and woof of the results received under REP in Armenia.