ANIF, Masdar company discuss Ayg-1 project 

ArmInfo.Armenian National Interests Fund  (ANIF) is pleased to announce that on November 26 a Government Support Agreement was Signed between the Republic of  Armenia and Masdar Company United Arab Emirates on the construction  of a 200-megawatt (MW) solar photovoltaic (PV) plant.

The Government Support Agreement was signed by the Minister of  Territorial Administration and Infrastructure of the Republic of  Armenia Gnel Sanosyan and the Chief Executive Officer of Masdar  Mohamed Jameel Al Ramahi. By signing the Government Support  Agreement, the parties have made commitments to implement the  project, in connection with which the investor has provided  guarantees under the contract. The agreement defines the complete  conditions and structure of the project.  Masdar company, which was  recognized as the winner of the tender for the implementation of the  program in July, introduced $ 0.0290 per kilowatt-hour (kWh) tariff.  The total project investment cost will be $ 174 million, and the  solar station to be built within the framework of the project will be  the largest in Armenia.  Charg‚s D'affaire of the United Arab  Emirates to the Republic of Armenia H.S. Ms. Ahlam AlSalami,  representatives of the European Bank for Reconstruction and  Development and the World Bank were also present at the signing  ceremony.

The Minister of Territorial Administration and Infrastructure Gnel  Sanosyan said: "The gradual increase of the volume of renewable  energy in the energy system is one of the priorities set by the  Government of Armenia. We regard this cooperation with Masdar as an  important step towards this goal, as well as towards endorsing  Armenia's investment potential. The Ayg-1 industrial 200 MW solar  plant project is a milestone on this road. We expect the signing of  this document to mark the start for a fruitful and lasting  cooperation and for new upcoming projects".

Charg‚ d'Affaires of the United Arab Emirates in the Republic of  Armenia Ms. Ahlam AlSalami said:  "This agreement will strengthen the  already powerful ties that exist between the United Arab Emirates and  the Republic of Armenia. The UAE and Armenia are united in our  commitment to take positive action against climate change, while  creating greater economic opportunities and this project marks a key  stage in Armenia's clean energy journey and our hopes for this  project to serve as an exemplary success to attract opportunities for  Armenia from the UAE."

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: "This  agreement marks a milestone on Armenia's clean energy journey, and  the development of this project will support the nation's sustainable  economic development. Armenia has tremendous potential for clean  energy resources, and we look forward to working with ANIF on further  opportunities in this field and leveraging the experience we have  gained as a global leader in renewable energy projects to support the  diversification of Armenia's energy." Chief Executive Officer of ANIF  David Papazian commented: "We are glad to welcome Masdar into  Armenia's journey towards the decarbonization of the country's energy  supply. AYG 1 is an ambitious step towards the fulfillment of this  goal, and Masdar's expertise and experience in the field is key to  the success of the project. AYG 1 is set to become a highly visible  investment project, benefitting the country, its citizens and  investors, while committing to highest sustainability standards in  the industry".  85% of the joint company shares for the  implementation of the Ayg-1 project will be owned by Masdar, and 15%  by ANIF.

ANIF was founded in 2019 with the mandate of attracting foreign  investments, promoting export growth, and co-financing investments in  large-scale projects in Armenia. ANIF's activities are aimed at  attracting foreign investments and managing the portfolio of  strategic assets in Armenia. The organization provides funding for  new, existing projects to promote economic activity and exports.  Abu  Dhabi's company Masdar is one of the world's leading renewable energy  companies. Wholly owned by Mubadala Investment Company, it is the  strategic investment company of the Government of Abu Dhabi. Today,  Masdar is active in more than 30 countries, including the UAE,  Jordan, Saudi Arabia, Mauritania, Egypt, Morocco, the UK, the US,  Australia, Serbia, India, Indonesia, Uzbekistan, and many more.

ArmInfo reported earlier Masdar intended to invest $300mln in the  development of Armenia`s solar energy sector. On July 12, Masdar  Chief Executive Officer Mohamed Jameel Al Ramahi and Chief Executive  Officer of ANIF David Papazian signed a cooperation agreement. 

Mr Papazian pointed out then that over 200 rivers and lakes would be  involved in the programme. Solar energy amounting to 1,720kwh per 1sq  meter is recorded in Armenia against the average European amount of  1,000 kwh per 1sq meter, he said. In 2020 Armenia became a full  member of the International Renewable Energy Agency (IRENA) in Abu  Dhabi. The country plans to ensure 26% of the domestic demand due to  renewable energy. 

The construction of Masrik-1 solar power plant is in progress in  Armenia. The construction project is being implemented by Photowatio  Renewable Ventures B.V (the Netherlands) and FSL Solar SL (Spain). To  implement the project, the consorium founded EFARVI Masrik CJSC. The  investment project is stimatd at $55mln. 

The RA Statistical Committee reports an essential growth in solar  energy output. This January-September, solar energy output totaled  63.3mln kwh - a 4.6-fold year-on-year growth.