Lotus Land Chinese company intends to participate in upcoming tender on construction of a solar power plant with a capacity of 50MW in Masrik locality in Armenia

ArmInfo. Lotus Land Chinese company registered in Shanghai intends to participate in the upcoming tender on construction of a solar power plant with a capacity of 50MW in Masrik locality in Armenia, representative of the company Seng Ten told journalists on the sidelines of an investment forum of solar energy development that kicked off in Yerevan today.

According to him China is the largest world producer of panels for solar stations and Lotus land company intends to make investments in the project. The proposal of the Chinese side will be acceptable and beneficial for Armenia. The company's representatives have arrived to Yerevan to get familiar with the terms of the upcoming tender. "We are interested in investments in solar power generating in your country.  The country is very sunny, which is an advantage, the representative of the company noted.  To recall, the tender on construction of a power station with a capacity of 50MW will be announced in February this year. More than 30 foreign companies and 300 participants take part in the forum that has kicked of in Yerevan today. Within the forum investment package on development of solar energy in Armenia will be presented to foreign companies. Considering drop of world prices on production of equipment for solar power plants the Armenian authorities are sure that it will be possible to produce electricity on acceptable tariff.

According to Deputy Minister of Energy Infrastructure and Natural Resources of Armenia Hayk Harutyunyan program of solar energy development is divided in two components-development of photovoltaic energy and construction of solar power stations with a capacity up to 1 MW.

The Deputy Minister recalled that on November 16 2016 the regulator set a new tariff on production of electricity by solar power facilities with a capacity to up to 1MW and more, which totals 42.6 drams for 1KW/h. This measure is temporary. Prospects of construction of solar power stations in the rest five localities will depend on the results of the first tender of construction of solar power stations in Masrik locality of Gegharkunik region. More than 10 international companies have already demonstrated interest in construction of solar power stations.

As it is known in the end of last year the Armenian government approved investment program on construction of photovoltaic stations, the total cost of which is estimated at $129 mln. Within the program it is planned to construct stations of industrial importance with a capacity to up to 110 MW in various regions of Armenia.  Earlier in his interview to ArmInfo Hayk Harutyunyan stated that for implementation of this project it is important to have a large area for balancing the production and consumption, to decrease a negative impact of the varying energy. Along with the development of the network the tariffs will be also revised.  The second stage will be the construction of a larger solar plant. This process was launched in 2014 but active work has started recently.  Climate Investment Fund for Development of Alternative Energy has provided $28 mln to Armenia, from which $2 mln are grant funds and $26 loan. The loan terms are quite soft-0.25% annual interest rate with 40 years term and 20 years of grace period. The grant funds are used for studying the locations, developing feasibility study of the project for building stations with 100-120 MW capacity.  Relevant framework is being prepared including legal and normative acts, assessment of influence on nature.  Currently 6 projects have been developed, which will be put to tender. The winner will be the one who offers the lowest tariff. Sub-loan agreement will be signed with the winner.