FRV reaches fin close on 55-MW Armenian solar project

Spain-based Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, has reached financial close on the 55-MW Masrik-1 Solar Farm project it plans to realise in Armenia.

FRV secured a USD-38.4-million (EUR 32.6m) debt financing package structured in different tranches from the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the European Union (EU). Ameriabank CJSC will provide a local-currency loan to finance FRV's value added tax (VAT) needs.

In 2018, FRV and the Ministry of Territorial Administration and Infrastructure signed a Government Support Agreement (GSA) to develop the photovoltaic (PV) plant.

To be located in Mets Masrik municipality, Gegharkunik province, Masrik-1 will be the first of its kind in Armenia. When completed, the PV park is expected to generate over 128 GWh of clean power per year, enough to meet the demand of 20,000 local homes.

Marsik-1 will sell electricity under a power purchase agreement (PPA) with utility Electricity Networks of Armenia at a tariff of USD 41.9 per MWh.

(USD 1.0 = EUR 0.850)

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