$40 M for transmission modernization in Armenia
The funding comes in support of the Enabling the Energy Transition project for Armenia.
Image for illustration purposes.
Armenia, Yerevan: The World Bank’s Board of Executive Directors has approved $40 million for the Republic of Armenia, focusing on the rehabilitation of transmission substations, reforms to allow the country’s transmission company to access private financing and the promotion of energy sector modernization. The funding comes in support of the Enabling the Energy Transition project for Armenia, set to help in the implementation of Armenia’s Energy Sector Development Strategy to 2040.
The project aims to attract $550 million of private investment, upgrade transmission substations with automated control and digital protection systems and increase the total capacity of such substations from 2711 MVA to 3109 MVA. The efforts are part of a strategy to enhance renewable energy adoption, minimize environmental impact and modernize the grid. The goal of the project is to facilitate the integration of an estimated 1.1 GW of renewable generation capacity into the grid by 2032, enough to supply over 690000 households and reduce the yearly emissions of net greenhouse gas by 540000 tonnes.
Armenia’s energy transition project forms part of the Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, with an overall financing envelope of $2 billion equivalent. The ECARES MPA aims to increase renewable energy capacity in participating countries of the Europe and Central Asia region, support the acceleration of their renewable energy transition and achieve scale and impact through private investment, while fostering knowledge sharing.
According to the World Bank, Armenia’s power sector is heavily dependent on imported fuels, especially natural gas, creating significant energy security risks. Attracting private investment is essential to fund the large-scale projects needed in the sector.
Source: Smart Energy International