The Ayg-1 project will be developed on a design, finance, build, own, and operate basis with Masdar owning 85% and the Armenian National Interests Fund (ANIF) holding a 15% share.

The 500-hectare plant will be located between the Talin and Dashtadem communities of Armenia, in an area where solar radiation is high and land is unusable for agricultural purposes.

Gnel Sanosyan, the Minister of Territorial Administration and Infrastructure of the Republic of Armenia, said: “The gradual increase of renewable sources in our country’s energy system is one of the priorities set by the Government of Armenia.

“We regard this cooperation with Masdar as an important step towards this goal, as well as towards endorsing Armenia’s investment potential. The Ayg-1 industrial 200MW solar plant project is a milestone on this road.”

In July, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of US$0.0290 per per kilowatt-hour (kWh).

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “We look forward to working with the Armenian National Interests Fund on further opportunities in this field, and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia’s energy mix.”

According to Masdar, Armenia is looking to increase the share of renewables in its energy mix as well as to reduce its dependence on imported oil & gas. The country also has significant solar energy potential, with an average annual solar energy flow per square meter of horizontal surface of around 1,720 kWh, compared with the average European figure of 1,000kWh.

The Government Support Agreement (GSA) was signed by His Excellency Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, at a ceremony today in Yeravan, the nation’s capital.