Solar Energy

 SOLAR ENERGY

Armenia has a significant solar energy potential. The average annual amount of solar energy flow per square meter of horizontal surface is about 1720 kWh
(the average European is 1000 kWh). One fourth of the country’s territory is endowed with solar energy resources of 1850 kWh/m2/year.

Solar thermal energy

In Armenia solar thermal energy is rapidly developing.The private sector is importing both parts for solar water-heating systems, with a view to their subsequent assembly, and complete sets. Currently, the use of solar water-heating systems in Armenia is not only to ensure energy savings, but also has become cost-effective.

In August, 2017 an «Energy Efficient» credit program was started. As of 31.05.2019 in the framework of this program 2685 solar water heaters and 101 solar PV systems were installed in non-gasified communities.

UTILITY-SCALE SOLAR PV PLANTS 

For the development of solar energy, according to the 1st stage of «Solar PV plant construction Investment Project» it is foreseen to construct an utility-scale Masrik-1 solar PV power plant with 50-55 MW capacity in Gegharkunik Marz of Armenia. Construction of other 5 PV plants with about 60 MW total capacity will follow-up. On March 21, 2018 the the international tender for the construction of Masrik-1 utility-scale solar PV plant with peak capacity of 55 MW construction was completed. In accordance with terms of the tender the lowest price introduced a consortium composed of «Fotowatio Renewable Ventures» Dutch and «FSL» Spain companies. That's 4,19 $/cent for 1 kWxh (approx. 20,11 arm.dram) VAT excluded.

On July 18, 2018 the Ministry of Energy Infrastructures and Natural Resources signed a Government Assistance Agreement «On Design, Funding, Construction, Ownership, Possession and Exploitation of Masrik-1 PV power plant in Mets Masrik community of Gegharkunik Region of Armenia». On 25 October, 2018 «FRV Masrik» CJSC (Constructor) got a License on electricity production activity from RA Public Services Regulatory Commission (PSRC) and the volume of total investments was estimated for about 58 mln. USD.

For the production of electricity in solar FV power plants with up to 5 MW capacity 27 companies (totally for about 63 MW) have been licensed, 10 of which (totally for about 8,01 MW)   are operated.

With  With the proposal of the Ministry of Energy Infrastructures and Natural Resources of RA the PSRC has fixed new provisions for energy sector regulation, particularly new tariff policy and the fallowing maximum annual capacities have been set:

1. Up to 50 MW total capacity for solar power stations till January 1, 2019, and 50 MW more installed capacity during 2019. And there is also an opportunity during 2019  to fill the unreached capacities of the licenses provided till 2019.

2. To provide the licenses for the stations providing energy using other renewable sources without capacity limits till January 1, 2020.

      By the decision of the Public Services Regulatory Commission the procedure for determining the electricity tariff produced by the power plants using the renewable energy sources was approved. According to it, the tariff for the solar energy is set on an annual basis. According to the decision of the Public Services Regulatory Commission N 159-N dated 29 May, 2019 the tariff for the period from 01.07.2019 to 01.07.2020 for solar power plants  with up to 5 MW capacity (including)  amounts 24.233 dram/ kWxh excluding VAT. For the solar power plants with more than 5 MW installed capacity is reviewed within the framework of separate investment projects. This tariff is determined and revised due to the definite method adopted by the Commission  decision N 88-N dated 22 April, 2015.In accordance with the above-mentioned procedure, in the end of every year the tariff for the wind energy is indexed due to the fluctuations in the national currency of Armenia against the USD for a certain period of time and due to the changes of consumer prices in the Republic of Armenia.

Autonomous solar energy producers

As of July 1, 2019 Technical terms were given to 1233 autonomous energy producers with capacity up to 500kW (total capacity 19,3 MW), 1144 of which have already been connected to energy system (total capacity 16,9 MW).

Guide for the construction of utility-scale solar power plant

To construct a solar power plant one should:

 1. Chose a landing (landing may be chosen from Solar Resource Map presented at http://minenergy.am/storage/hh_taracqum_arevayin_neruji_qartezner.pdf.). web-site).

2. Get Land Use Right and change the Land Use Destination to «Objects of energy, transport, communication and utility infrastructures» as needed.

3. Make a Business Plan.

4. To get information on licensing in the sphere of energy visit web-site of the Public Services Regulatory Commission of RA- www.psrc.am, section «Information for Investorts»

5. Apply to Public Services Regulatory Commission of RA to get License for producing Electricity.

6. For free professional consulting apply to Armenia Renewable Resources and Energy Efficiency Fund - www.r2e2.am and/or to German-Armenian Fund - www.gaf.am (soft loans are available here).

7. Constuct solar Power Plant by keeping the terms of the above mentioned License.