Armenia: Viability Assessment for Potential Wind Power Electricity Generation Projects
The Government of Armenia requested support from the Asian Development Bank (ADB) in exploring opportunities to develop Armenia's wind energy potential. ADB responded to the request by preparing the first of two planned phases of technical assistance (TA). The knowledge and support TA concept paper for phase 1 was approved on 26 January 2022 supporting the government's selection of sites for investment in electricity generation from wind and build knowledge of the technical and financial feasibility work. The phase 1 TA will assist the Ministry of Territorial Administration and Infrastructure (MTAI) to comply with the new public investment management (PIM) framework requirements of Armenia. In that sense, it will help inform subsequent decisions in phase 2 on structuring prospective investments and selecting the best procurement options.
Project Details
-
Project Officer
Barseghyan, Areg Arcady
Central and West Asia Department
Request for information -
Country/Economy
Armenia -
Sector
- Energy
| Project Name | Viability Assessment for Potential Wind Power Electricity Generation Projects | ||||
| Project Number | 55332-001 | ||||
| Country / Economy | Armenia |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Energy / Energy efficiency and conservation - Renewable energy generation - wind |
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| Gender Equity and Mainstreaming | Some gender elements | ||||
| Description | The Government of Armenia requested support from the Asian Development Bank (ADB) in exploring opportunities to develop Armenia's wind energy potential. ADB responded to the request by preparing the first of two planned phases of technical assistance (TA). The knowledge and support TA concept paper for phase 1 was approved on 26 January 2022 supporting the government's selection of sites for investment in electricity generation from wind and build knowledge of the technical and financial feasibility work. The phase 1 TA will assist the Ministry of Territorial Administration and Infrastructure (MTAI) to comply with the new public investment management (PIM) framework requirements of Armenia. In that sense, it will help inform subsequent decisions in phase 2 on structuring prospective investments and selecting the best procurement options. Phase 1 TA will also help lay the groundwork for a possible public-private partnership (PPP) option if the requirements for it under Armenia's new PIM framework and other fiscal management rules under the new PPP legal and regulatory framework are met when public procurement options are appraised. The phase 2 TA (through a new, second TA project) is planned to support the preparation of a sustainable PPP transaction, in full compliance with national PPP legislation and its competitive bidding principles, when the confirmation of the viability of a commercially oriented wind energy investment under phase 1 TA and all the necessary PIM and PPP framework criteria (including clear value-for-money tests) are received. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | A least-cost energy development plan for Armenia (2019), sponsored by the United States Agency for International Development (USAID), identifies the development of Armenia's abundant solar and wind potential as the clear least-cost options for new generation capacity._The baseline scenario of the least-cost energy development plan envisages the introduction of about 500 megawatts (MW) of wind generation capacity, which would provide annual generation of more than 1 billion kilowatt-hours, equal to 17% of current electricity consumption._In the longer term, a doubling of this capacity appears to be economical and will improve Armenia's energy security and independence. Currently, only 35% of Armenia's total electricity demand is met by indigenous resources (primarily hydroelectric), whereas 65% of electricity generation relies on imported natural gas and nuclear fuel. With no indigenous fossil fuel resources, the country is dependent on natural gas and oil imports from the Russian Federation (via Georgia) and Iran, as well as nuclear fuel (also from the Russian Federation) for its nuclear power plant, which provides about 30% of Armenia's electricity generation. The government promotes the development of renewable energy generation capacities in its Energy Sector Development Strategic Program to 2040, including wind power. This TA complements other ADB TA projects, including regional TA for Improved Decision-Making for Climate-Resilient Development in Asia and the Pacific. Armenia's grid emission factor is comparatively low because of the prominence of its nuclear, hydroelectric, and modern and efficient combined-cycle gas turbine plants in its generation mix._Accordingly, the climate change mitigation impact in the development of Armenia's wind power potential is relatively small (compared with other countries in the Central and West Asia region). For Armenia, the paramount driver of renewable energy investment derives from economic and geopolitical energy security concerns (i.e., reduction of reliance on imported gas in favor of indigenous resources). |
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| Impact | Share of renewable energy sources in electricity production increased and greenhouse gas emissions reduced. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Utilization of Armenia's wind power potential increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Armenia's wind potential and grid stability assessed Armenia's wind power potential development increased |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | Viability assessment and feasibility study; consulting firm and individual consultant |
| Procurement | ADB will engage the consultants and carry out procurement following the ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions. |
| Responsible ADB Officer | Barseghyan, Areg Arcady |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Energy Division, CWRD |
| Executing Agencies |
Ministry of Territorial Administration and Infrastructure |
| Timetable | |
|---|---|
| Concept Clearance | 26 Jan 2022 |
| Fact Finding | 24 Jan 2022 to 22 Jun 2022 |
| MRM | - |
| Approval | 27 Sep 2022 |
| Last Review Mission | - |
| Last PDS Update | 27 Sep 2022 |
TA 6959-ARM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 27 Sep 2022 | 28 Oct 2022 | 28 Oct 2022 | 30 Nov 2025 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 1,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,000,000.00 | 14 Dec 2022 | 0.00 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Viability Assessment for Potential Wind Power Electricity Generation Projects: Technical Assistance Report | Technical Assistance Reports | Sep 2022 |
| Viability Assessment for Potential Wind Power Electricity Generation Projects: Technical Assistance Letter | Technical Assistance Letter | Sep 2022 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Individual Consultant | Individual - Consulting | Closed | 09 Nov 2022 | 29 Nov 2022 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.