$100 million from UAE to fund solar power in Armenia

By Swann Bigot, legal expert and consultant in international affairs, for Eurasia Network – April 2, 2017

Solar panels – source : pixabay.

A memorandum of understanding was signed between the Armenia’s Ministry of Energy and the company Ocean Holding in Abu Dhabi, United Arab Emirates, on March 22^nd concerning $100 million investment in solar power plants reaching total capacity of 100-120 MW. In 2015 the Armenian government approved the investment program for the construction of solar power plants for a global cost estimated at $ 129 million. Therefore, several industrial solar power plants would be built in different regions of the country in the next years.

The company Ocean Holding based in Abu Dhabi will invest $100 million in the construction and operation of solar power plants in Armenia over the next three years, using the most advanced technology available, according to Hayk Harutyunyan, Deputy Minister of Energy Infrastructure and Natural Resources of Armenia.

The funding of $100 million will be carried out in several stages. The Ministry stated that it will support the investment by creating favorable conditions.

The relevant memorandum of understanding was signed on March 22^nd in Abu Dhabi during the investment forum “Armenia – United Arab Emirates”.

Ocean Holding will build solar power plants in Armenia with a total capacity reaching 100-120 MW, which would cover up to 3-4% of the country’s energy consumption, according to the Deputy Minister Hayk Harutyunyan. Investors will be able to present their own proposals.

The President of Armenia Serzh Sargsyan, who was on a working visit to the UAE, took part in the event. He stated during his speech that Armenia shall welcome and support investors from the United Arab Emirates in various sectors of the national economy, stressing that the country ranks 38th among 190 countries in the World Bank 2017 Doing Business Report.

Read also : A 50 MW solar power plant to be built in Armenia

President Serzh Sargsyan also discussed with the Minister of Economy of UAE his Excellency Sultan Bin Saeed Al Mansouri and noted that potential investors expressed interest in implementing other investments in Armenia, taking into account the advantages of the tax legislation and the business climate in the country.

The event aimed at boosting the economic ties between Armenia and the Arab countries, the contacts between businessmen, presenting Armenia’s investment environment and mutually beneficial investment programs in various fields. The forum was attended by over 300 participants, including government officials, heads of funds, representatives of international organizations and foreign investment companies operating in Armenia.

It was organized with the support of the Armenian President and the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, his Highness Sheikh Mohamed bin Zayed Al Nahyan.

Solar power in Armenia

In 2015 the Armenian government approved the investment program for the construction of solar power plants for a global cost estimated at $ 129 million. Several industrial solar power plants up to 110 MW will be built in different regions of the country.

The country receives a high amount of solar radiation throughout the year. As the cost of the solar power technology has drastically decreased over the past years and with no oil and gas national production, this solution has become attractive.

Read also : Norwegian company wants to build two solar power stations in Ukraine

This program is funded by the Renewable Energy and Energy Saving Fund with the support of the Climate Investment Funds, the Ministry of Energy and Natural Resources of Armenia, as well as with the assistance of the World Bank and the Asian Development Bank.

The current energy mix of Armenia is diversified with 45% of available capacities covered by hydropower, 40% of capacities covered by thermal power and 15% by nuclear in 2015.[1]

Ocean Holding is an investment and development company headquartered in Abu Dhabi, United Arab Emirates. Ocean Holding invests in the research and development of green projects, renewable energy sources, sustainable agriculture, organic food production, farming, irrigation technologies as well as exploration and extraction of minerals, according to its website. 

In addition, Ocean Holding develops business relationships with public and private sectors in the field of technology, sustainability and finance.

The company claims on its website that it has delivered more than 500 MW solar farms around the world with partners from France and Germany.

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© Copyright 2019 – Swann Bigot, legal expert and consultant in international affairs.

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Sources : 

[1] « Sustainable Energy », Ministry of Energy Infrastructure and Natural Resources of Armenia : http://r2e2.am/wp-content/uploads/2017/01/Sustainable-Energy.pdf p.4 ;