GEFF in Armenia interviewed Mr. Karen Asatryan, the director of R2E2 Fund − Armenia Renewable Resources and Energy Efficiency Fund, who shared his insights regarding renewable energy (RE) developments in Armenia and what opportunities lie ahead in 2022.
1. What are recent achievements in the field of RE in Armenia?
Armenia is rapidly scaling up variable renewable power. The first utility-scale solar programme in Armenia reached a financial close in March 2020. A second programme for a 200 MW investment project was tendered via PPP and international investors were engaged in 2021. The government is preparing a similar programme for wind power. In parallel, the government is promoting private investments in small industrial-scale solar power plants (1 to 5 MW, although licenses for 200 MW were also issued) and solar net-metering by private households and SMEs.
In total, the government is planning to have 1,000 MW of solar power commissioned by 2030 and 500 MW of wind power by 2040. During the last four years, the number of PV installations by households and businesses has dramatically increased from 0 to 150 MW, due to one of the best-in-class net-metering legislations.
2. What are the main challenges to developing the field of RE in Armenia in 2022, particularly with regard to solar and other sources?
The electric network capacity to accept renewable energy sources could be considered the main challenge.
The R2E2 Fund, with the support of the Government of Armenia, is actively working on promoting renewable energy projects to reach the goal set in Armenia’s Energy Strategic Development Program 2020 to 2040 (approved in early 2021). The Program identifies wind and solar expansion as critical priorities and recognises the potential role that energy storage could play if developments in the energy storage market are favourable. By 2040, the share of RE will reach up to 60% with the following distribution − solar 15%, wind 10%, and HHP 30%.
Electric system integration with neighbouring countries will lead to increased energy acceptance capacity by the power grid.
3. How much RE sector growth do you expect in Armenia in 2022, and which green technologies will contribute to this growth? Which technologies should businesses and suppliers look out for?
We can predict up to ten per cent growth in the RE sector in Armenia in 2022. It is most likely that the solar power plants will be the main contributors to this growth. In addition to solar panels, the modernisation of hydropower plants may also be a contributor. There are also precursors for wind power, but growth in the wind energy sector is not likely in 2022. Therefore, suppliers and businesses should primarily focus on highly efficient solar panels and hydro turbines.
4. Where do you see opportunities for business development? Which sectors or businesses are likely to contribute to the growth of the RE sector in 2022?
We see opportunities for business development in evolving ESCO companies, which can provide a wide variety of RE solutions for the business and public sectors.
New technologies such as smart energy management, energy accumulation and hydrogen technologies, as well as software, are capable of supporting all kinds of RE technologies, which could be great opportunities for businesses.
Floating solar PV plants are the next real opportunity for Armenia, taking into account the current pilot project implemented by the R2E2 Fund.
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