World Bank supports geothermal exploration in Armenia

The World Bank approved a grant worth USD 8.5 million (EUR 7.6m) on Monday for geothermal exploration drilling at the Karkar field in Armenia.

The government wants to develop a geothermal power plant with the private sector if the drilling works confirm commercial resources. Early-stage analyses indicate a potential 28-MW plant with a total estimated cost of nearly USD 100 million.

The site was selected for exploration based on the results of field investigation works under the Armenia Geothermal Project, financed by the Global Environmental Facility (GEF) and completed in 2012.

The World Bank's investment in Karkar can help build a domestic capacity for other prospective sites in a country with an estimated geothermal potential of around 150 MW, country manager Laura Bailey said.

(USD 1 = EUR 0.890)

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