The International Finance Corporation (IFC), European Union (EU), and European Bank for Reconstruction and Development (EBRD) have joined hands to support the development of the first utility-scale solar power project in Armenia.

The 55 MW, solar power project, is being developed by Fotowatio Renewable Ventures (FRV). The Armenia Renewable Resources and Energy Efficiency Fund awarded the project to FRV in 2018. The project is expected to power 21,400 Armenian homes.

The project is located at the Mets Masrik Municipality in Gegharkunik province of Armenia.

IFC is the financial arm of the World Bank Group. According to its press release, IFC and EBRD will provide a $35.4 million debt financing package, which includes two $17.7 million long-term loans from each to FRV. The EU will also hand over an investment grant of €3 million ($3.42 million), IFC’s statement added.

According to IFC, the project is likely to generate more than 128 GW of electricity every year, offsetting about 40,000 tons of carbon emissions into the atmosphere annually. The generated electricity would be sold to the Electricity Network of Armenia.

“The Masrik solar project is an additional milestone in IFC’s support to Armenia’s effort over the years to attract private sector investment to power generation. It is the first step in the country’s ambitious solar power plans and will serve as an example to be followed by many more projects in the years to come,” said Cheryl Edleson Hanway, IFC’s regional senior manager for infrastructure and natural resources.

Recently, Armenia Renewable Energy Efficient Fund issued a request for the qualification for 200 MW of grid-connected solar power projects in the country.  The projects will be developed in the communities of Talin, Dashtadem, and Ashnak in the Aragatsotn province of the Republic of Armenia.

According to Mercom’s India Solar Project Tracker, FRV has 100 MW projects under operation in India.

Previously, FRV had raised $29 million (~₹1.86 billion) in non-convertible debentures from the IFC to fund 100 MW of solar projects in India.