FRV reaches financial close on 55 MW Masrik-1 solar project in Gegharkunik

Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy has closed the financing agreement for the development of the largest utility-scale solar power plant located in Mets Masrik municipality, Gegharkunik region, in Armenia.

The project is supported by the International Finance Corporation (IFC), a member of the World Bank Group, the European Bank for Reconstruction and Development (EBRD), and the European Union (EU). They will extend up to US$38.4 million financing structured in different tranches of debt. Ameriabank will provide AMD loan facility to finance the company’s VAT needs.

In 2018, FRV and the Ministry of Territorial Administration and Infrastructure signed a Government Support Agreement (GSA) to design, finance, build, own and operate the solar power plant with the support of the Renewable Resources and Energy Efficiency (R2E2) Fund, the implementation agency authorized by the Government of Armenia.

The 55 MW Masrik-1 solar power plant will generate more than 128 gigawatt-hours of electricity annually at a competitive tariff of US$41.9 MWh. The electricity will be sold under a power purchase agreement to Electric Networks of Armenia, the utility company responsible for the distribution of electricity in the country.

The plant will produce enough energy to supply more than 20,000 Armenian households and is projected to avoid the release of over 40,000 tons of carbon emissions annually.