On 30 November, the Abu Dhabi Future Energy Company, also known as Masdar, signed a “joint development agreement” with the Armenian National Interests Fund (ANIF) to finance the construction of large solar power plants in Armenia that would ease the country’s dependence on natural gas and nuclear power, reported the Armenian Radio Free Europe.

In a joint statement, Masdar and ANIF said the deal envisages the launch of solar energy projects in Armenia with a total capacity of 400 megawatts. This would nearly match the design capacity of the Metsamor nuclear plant generating more than one-third of the South Caucasus nation’s electricity. They said this will require between $300 million and $320 million in investments, the bulk of which will presumably be made by Masdar. 

“The first project planned under the Joint Development Agreement is a 200-megawatt utility-scale solar photovoltaic (PV) plant in the west of Armenia,” added the statement. It did not provide dates for the start of its construction. 

The statement quoted Masdar’s chief executive, Mohamed Jameel Al Ramahi, as noting Armenia’s “considerable untapped potential for both solar and wind power.” “Armenia is a fast-growing economy with an increasingly open and supportive environment for inward investment,” said Al Ramahi. “That is an important reason why we have been able to move forward in our partnership with ANIF so swiftly.”

Masdar was established in 2006 and is based in the United Arab Emirates. The company is owned by the Abu Dhabi government’s Mubadala Investment Company. The company's mandate is to help maintain the leadership of the United Arab Emirates (UAE) in the global energy sector, while supporting the diversification of both its economy and energy sources for the benefit of future generations. Masdar develops commercially viable renewable energy projects in the Middle East & North Africa.

According to the Armenian Ministry of Energy Infrastructures and Natural Resources of Armenia, Armenia has an average of about 1720 kilowatt hour (kWh) solar energy flow per square meter of horizontal surface annually and has a potential of 1000 MW power production. The first Armenian solar power plant with a 0.5-megawatt capacity went online in September 2017. Six more similar facilities were connected to the national power grid by November 2018. The main companies that operate in this sector in Armenia are Arpi Solar Ltd, Simartek, Eco Step Armenia, ArtClima, General Electric Lighting Armenia (Rubinar LLC), Elips Technoline, Hatuk Santekhmontazh CJSC, Shtigen, Technoeco, and Solaron. One of the main factors preventing the development of solar energy in Armenia is the installation cost.