Tuesday, August 5 2014

 5-6 organizations have an intention to invest in construction of solar power plants in Armenia, Tamara Babayan, Director of the Renewable Resources and Energy Efficiency Fund of Armenia, said at a press conference on Tuesday. 

She said that Armenia is currently exchanging information with these companies. "The fact that 5-6 organizations are interested in investing demonstrates their serious intentions", she said. Babayan pointed out that these organizations want to get information about the climate of the country, tax preferences, and legislation of Armenia and they are looking for the most favorable regions to build the plants. She added that the investors showed their interest as early as 2000, however, in 2000 their interest was not so specific as now. 

When asked by ArmInfo's correspondent why no company has invested in construction of solar power plants in Armenia so far, Babayan replied that the reason was the high prime cost of the power generation and the solar power tariff is not fixed. However, the solar power technologies are improving and becoming more available. In addition, negotiations should be conducted with every particular investor and the regulator may fix a specific tariff for each business programme. 

Babayan pointed out that today the conditions for construction of solar power plants are even more favorable than those for small-scale hydropower plants (HPPs). No permit is needed for construction of plants with the capacity of up to 150 KW/h. The republic has 150 small-scale hydropower plants, which generate 11% of the total output of electric power in the country. 10 years ago the small HPPs generated only 0.5% of the total electric power output. She said that the capacities of HPPs are limited by water resources. In the best case, no more than 60-80 small HPPs can be built in Armenia, whereas solar energy is inexhaustible. Solar power plants need big investments at the first stage; however, at the second stage the prime cost of the renewable energy is becoming cheaper. Moreover, solar energy will be able to reduce the dependency on the imported energy resources. She thinks that the Government of Armenia should support solar energy development projects and stimulate them in every possible way. 

To note, the Renewable Resources and Energy Efficiency Fund was founded in 2005 by the Armenian Government.