The World Bank has pledged USD 40 million (EUR 36.8m) to support energy transition initiatives in Armenia, aimed at integrating 1.1 GW of renewable energy generation capacity into the country's grid by 2032.
In a statement released on Monday, the World Bank outlined that the funds will be allocated towards projects focusing on the rehabilitation of power transmission substations, facilitating reforms to enable the transmission company's access to private financing, and promoting energy sector modernization.
This support aligns with the Energy Sector Development Strategy to 2040 of the Republic of Armenia, aimed at reducing the nation's heavy reliance on imported fuels, particularly natural gas. Presently, only approximately 1% of Armenia's total energy supply is sourced from non-traditional renewable energy sources such as wind and solar.
Carolin Geginat, World Bank Country Manager for Armenia, emphasized the importance of ongoing investments in modernizing the power transmission network and enhancing the commercial viability of the High-voltage Electric Networks of Armenia JSC, the country's transmission company, to ensure affordable, reliable, and clean electricity supply.
Part of the broader USD 2 billion Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, the initiative aims to attract private investments totaling USD 550 million. Upgrades to all transmission substations will include the implementation of automated control and digital protection systems, with their total capacity set to increase from 2,711 MVA to 3,109 MVA.
