World Bank provides USD 40m to back energy transition in Armenia

The World Bank has agreed to provide USD 40 million (EUR 36.8m) to support energy transition-related initiatives in Armenia that will facilitate the adoption of 1.1 GW of renewable energy generation capacity into its grid by 2032.

The funds will be directed towards projects for the rehabilitation of power transmission substations, the adoption of reforms to allow the transmission company to access private financing, and the promotion of energy sector modernisation, among other initiatives, the lender said in a statement on Monday.

Overall, the World Bank support will advance the implementation of the Energy Sector Development Strategy to 2040 of the Republic of Armenia, helping the former Soviet republic in tacking its strong reliance on imported fuels, especially natural gas. Currently, only about 1% of the country’s total energy supply comes from non-traditional renewable energy sources like wind and solar.

“To ensure affordable, reliable, and clean electricity supply for consumers, Armenia needs continued investments in modernising the power transmission network and improving the commercial viability of the High-voltage Electric Networks of Armenia JSC, the transmission company,” said Carolin Geginat, World Bank country manager for Armenia.

The initiative, which is part of the USD-2-billion Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, seeks to attract private investments totalling USD 550 million. All transmission substations will be upgraded with automated control and digital protection systems and their total capacity will be increased from 2,711 MVA to 3,109 MVA.

(USD 1 = EUR 0.920)

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