Providing support to R2E2 Fund for the implementation of renewable energy auctions in Armenia

February 2020 – May 2021

Project Description 
The Government of Armenia (“GoA”) is planning to scale-up the share of renewable energy sources in the country, which is characterized by ageing power generation infrastructure and significant dependence on imported fossil fuel. The country has good renewables potential with solar irradiation being among the highest in the region and with the significantly decreased cost of solar technology, the GoA envisages that solar photovoltaic projects will provide attractively priced electricity for the country.  
 
After the successful auction of the pilot Masrik-1 Solar Power Plant project in 2018, the GoA through its dedicated entity, Renewable Resources and Energy Efficiency Fund (“R2E2”), has short-listed additionally five PV sites across the country which will be subject to a public international tender. The new projects will promote the Green Economy approach and support the Government’s strategy to foster low carbon generation and to replace expensive gas-fired generation in the energy balance of Armenia with a cheaper and cleaner source of power.
 
Objectives 
The key objectives of this assignment are to:
  1. Provide support to the authorities on the sizing and split of the five short-listed solar PV sites into different projects that will be covered by a competitive bidding process.
  2. Develop a detailed design for a competitive bidding process for supporting renewable energy, building on the framework for the previous solar PV tender.
  3. Prepare, up to the final version, all the tender related documentation required for the deployment of a competitive procurement scheme for a solar PV project.
  4. Provide detailed technical, financial and legal assistance to the relevant authorities for the implementation of the competitive procurement scheme.
 
Services rendered
  • Review existing legislation and materials related to ongoing reforms in energy sector
  • Review the available information on sites the authorities have previously short-listed for the development of solar PV in Armenia
  • Undertake required updates to the existing feasibility studies for each of the short-listed sites
  • Provide support to the authorities in evaluating the two additional sites, already pre-identified
  • For each of the five sites, undertake: (i) a site-specific environmental and social (E&S) screening assessment; and (ii) develop a package of E&S documentation to provide an E&S appraisal of potential E&S impacts
  • Define criteria by which different sizing alternatives for sites and potential aggregation of multiple sites into individual projects may be assessed
  • Assess different options for sizing projects against the criteria developed
  • Develop a detailed design for a competitive bidding process for supporting renewable energy, building on the framework for the previous solar PV tender and newly adopted PPP law
  • Develop the tender documentation required for the solar PV auction

 

Experts involved

Njdeh Andreas – Acting as Project Manager and Energy Expert.  

References

Terms of Reference: https://www.ebrd.com/documents/procurement/79664-tors.pdf?blobnocache=true

Services – Developing renewable energy projects

 

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