Czech companies are interested in implementing projects in renewable energy field of Armenia

ARMINFO News Agency, Armenia
 Wednesday


Czech companies are interested in implementing projects in renewable
energy field of Armenia

 Yerevan May 31

A number of Czech companies with significant experience in
implementing projects for the development of various spheres in the
field of renewable energy held a large presentation for
representatives of the Armenian business in Yerevan yesterday. The
event was organized by the Czech Embassy in Armenia. "The Czech
Republic has accumulated colossal experience in small hydropower
engineering, construction and operation of photovoltaic and wind
parks, and our companies are interested in cooperation with Armenia,
which started serious projects in the field of renewable energy,"
Czech Ambassador to Armenia Petr Mikyska said when opening the
presentation.

The head of the energy department of the Ministry of Energy
Infrastructures and Natural Resources of Armenia, Hayk Badalyan, who
spoke at the event, noted that support for the development of
renewable energy is one of the priorities in the activities of the
ministry. In the conversation with the correspondent of ArmInfo, the
specialist emphasized that the government made a number of decisions
that contribute to the development of the industry, from temporary
exemption from VAT payments (up to 300 million AMD) for import of
equipment to light licensing procedures. These measures are aimed at
the successful implementation of a large investment program developed
by the Ministry of Energy, which envisages the installation by 2020 of
several solar stations with a capacity of 40-50 megawatts, which will
be connected to the common electricity network of Armenia. The full
implementation of the program, according to preliminary estimates, can
provide up to 8% of the energy consumed in the country. An important
aspect of the success of the program is an important legislative
stimulating norm, obliging a guaranteed purchase of electricity from
the electricity supply network for 20 years at a comfortable tariff
for investors, established by the Public Services Regulatory
Commission. The Ministry estimates that the capital expenditures for
the construction of one solar station with a capacity of 1 MW will
amount to about $ 1 million, which falls under investor-friendly,
lightweight procedures.

Touching upon the development of solar energy, for which the so-called
"solar map" of Armenia was created, Badalyan said that three
photovoltaic stations have already been licensed in the country, two
of them with a capacity of up to 1 MW and one up to 500 kW. He also
informed that within the framework of the investment program of the
Ministry of Energy, necessary research has already been carried out in
six regions of the country and a tender has already been announced for
the construction of a solar station in the town of Masrik in
Gegharkunik region up to 55 MW. As a result of its implementation, it
is assumed that the tariff for electricity of this large station will
not exceed 6 cents per kW of electricity.

Present at the presentation of the representative of the Czech company
SWH Groop of Armenia, Antonin Kolka, in an interview with ArmInfo
correspondent, stated his intention to participate in the tender for
the construction of a solar station in Masrik. According to him, the
country has created good conditions for attracting foreign investors
to projects on renewable energy generation. In addition to the
construction of a photovoltaic station, the company, which mainly
performs engineering tasks, has several projects for Armenia,
including the first project for the country to create a power
generation station as a result of processing domestic waste. He noted
that the company is waiting for concrete proposals from the government
in order to understand the tasks and long-term interests of the state
to familiarize investors and search for partners. "With these
documents and government guarantees, we can begin the search for the
necessary financial resources," the expert noted. He informed about
the availability of a preliminary program for the creation of a
similar station in the Tavush region, which was also presented at the
event. According to initial estimates, it will cost (capex) 30 million
EUR, will process up to 54 thousand tons of garbage, issuing 64
megawatts of electricity. Return on investment (ROI) will be provided
for 8 years of work with an internal rate of return (IRR) of 13% and
an annual profit (EBITDA) of 4.2 million EUR.

To note, the peak of the development of renewable energy in the Czech
Republic occurred in the second half of the 2000s, the country built
over 300 wind farms and about 28 thousand solar power plants, which
together generate 2,300 MW of electricity or 5% of all electricity
generated in the country. Recently, the government of the country has
limited the growth of the scope on an industrial scale due to the
excess of the electricity and its impact on the overall tariff policy.
However, at the same time, the state continues to successfully
stimulate private projects to develop alternative energy for
individual needs. Over the next three years on the roofs of private
houses in the Czech Republic should appear more than 40 thousand new
solar micro-power plants. Restrictions for the industrial development
of the sphere (without accumulation) narrowed the possibilities of
already experienced engineers in their own country; they turned their
attention to new markets, including Armenia, rich in winds and the
sun.