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.
Barseghyan, Areg Arcady
Central and West Asia Department
Request for information
|Project Name||Viability Assessment for Potential Wind Power Electricity Generation Projects|
|Country / Economy||Armenia
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Operational Priorities||OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
|Sector / Subsector||
Energy / Energy efficiency and conservation - Renewable energy generation - wind
|Gender||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).
Share of renewable energy sources in electricity production increased and greenhouse gas emissions reduced.
|Description of Outcome||
Utilization of Armenia's wind power potential increased
|Progress Toward Outcome|
|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)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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|
Ministry of Territorial Administration and Infrastructure
|Concept Clearance||26 Jan 2022|
|Fact Finding||24 Jan 2022 to 22 Jun 2022|
|Approval||27 Sep 2022|
|Last Review Mission||-|
|Last PDS Update||25 Jan 2023|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Sep 2022||28 Oct 2022||28 Oct 2022||30 Nov 2025||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||0.00||0.00||1,000,000.00||23 Mar 2023||5,287.19|
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
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None currently available.
Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|Consulting firm||Firm - Consulting||Closed|
|Individual Consultant||Individual - Consulting||Closed|
None currently available.