The European Bank for Reconstruction and Development, IFC, a member of the World Bank Group; and the European Union (EU) have agreed to support the development of the first utility-scale solar power plant in Armenia, which is also the first for the Caucasus.

The 55 MW power plant facility, located in Mets Masrik municipality, Gegharkunik Province, will boost Armenia’s supply of renewable energy and will help the country reduce its reliance on imported fuels.

The plant is being developed by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, a global leader in utility-scale renewable energy projects. The company will receive a USD 35.4 million debt financing package consisting of two USD 17.7 million long-term loans, one each from IFC and the EBRD. The project will also receive a EUR 3 million investment grant from the European Union, mobilised by the EBRD. The IFC financing package includes a USD 8.9 million loan from IFC’s own account and a USD 8.9 million loan from the Finland-IFC Blended Finance for Climate Program.

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