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Masdar Signs Agreement to Develop Solar Power Plant in Armenia

Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during signing the agreement. Asharq Al-Awsat
Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during signing the agreement. Asharq Al-Awsat
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Masdar Signs Agreement to Develop Solar Power Plant in Armenia

Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during signing the agreement. Asharq Al-Awsat
Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, during signing the agreement. Asharq Al-Awsat

Masdar, one of the world’s leading renewable energy companies and a subsidiary of Mubadala Investment Company, announced it has signed an agreement with Armenia to develop a 200-megawatt (MW) solar photovoltaic (PV) plant.

The Ayg-1 project will be Armenia’s largest utility-scale solar plant.

The Government Support Agreement (GSA) was signed by Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of Armenia, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, at a ceremony in Yerevan, the nation’s capital.

Sanosyan commented: "The gradual increase of renewable sources in our country's energy system is one of the priorities set by the Government of Armenia. The Ayg-1 industrial 200 MW solar plant project is a milestone on this road. We expect the signing of this document to mark the start of a fruitful and lasting cooperation on this and for new upcoming projects."

The Ayg-1 project will be developed on a design, finance, build, own, and operate (DFBOO) basis and the project company will be 85 percent owned by Masdar, with the Armenian National Interests Fund, holding 15 percent.

In July, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of 2.9 cents per kilowatt-hour in a competitive process.

Ahlam Rashid Ahmed AlAbd AlSalami, Chargé d’Affaires of the Embassy of the United Arab Emirates, said: "This agreement will strengthen the already powerful ties that exist between the United Arab Emirates and the Republic of Armenia.

The UAE and Armenia are united in our commitment to take positive action against climate change, while creating greater economic opportunities and this project marks a key stage in Armenia’s clean energy journey and our hopes for this project to serve as an exemplary success to attract opportunities for Armenia from the UAE."

David Papazian, Chief Executive Officer of ANIF commented: "We are glad to welcome Masdar into Armenia's journey towards the decarbonization of the country's energy supply.

Ayg-1 is an ambitious step towards the fulfillment of this goal, and Masdar's expertise and experience in the field is key to the success of the project. Ayg-1 is set to become a highly visible investment project, benefitting the country, its citizens and investors, while committing to highest sustainability standards in the industry.”

Ramahi said the development of the project will support Armenia’s sustainable economic development.

“We look forward to working with the Armenian National Interests Fund on further opportunities in this field, and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia’s energy mix. "

The Ayg-1 plant will be located between the Talin and Dashtadem communities of Armenia, in an area where solar radiation is high and land is unusable for agricultural purposes. The plant will span over 500 hectares and will create numerous direct and indirect jobs.

Armenia is looking to increase the share of renewables in its energy mix and reduce its dependence on imported oil & gas.

The country also has significant solar energy potential, with an average annual solar energy flow per square meter of horizontal surface of around 1,720 kWh, compared with the average European figure of 1,000 kWh.

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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)

British finance minister Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Saturday that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

Under pressure from a sharp rise in British interest rates, Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen for nearly six years.

"The fiscal rules that I set out in my budget in October are non-negotiable, and growth is the number one mission of this government to make our country better off," Reeves told reporters at a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond selloff, prompted comparisons with the 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.

On trade, asked whether Britain would follow Washington and Brussels in imposing tariffs on Chinese electric vehicles, Reeves, who will be in Shanghai on Sunday, said: "We keep issues under review but we make decisions in our national interest."

British car manufacturers, "like Jaguar Land Rover, export substantially to Chinese markets, and we want to help them to grow."

After her bicycle shop visit, Reeves met Vice President Han Zheng, telling him it was "important to have open and frank dialogue in areas where we agree, but also in areas where we have different views."

'COMMON GROUND'

Her delegation, which includes Bank of England Governor Andrew Bailey, Standard Chartered Chairman Jose Vinals, and HSBC Chairman Mark Tucker, then met Chinese counterparts led by Vice Premier He Lifeng.

He urged British financial firms to expand renminbi services and promote deeper yuan internationalization, while inviting them to participate in green finance and the pension industry in China.

Reeves said she looked forward to China issuing its first overseas sovereign green bond in London this year.

Her visit follows a dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping, the first between the two countries' leaders since 2018.

Reeves told He that Russia's invasion of Ukraine, rising geopolitical tensions and climate change meant that they faced a much more challenging environment than when their predecessors last met.

"It is important to prevent economic leaps weakening our national security and economic resilience," she said, adding both she and He wanted to "find common ground" in this regard.

He said Beijing will work with London to ensure a fair, non-discriminatory business environment for each country's firms.

The approach adopted by Starmer's Labor government, elected in July, contrasts with that of the previous Conservative administration, which took a robust path to differences with China - particularly over human rights, Hong Kong and allegations of Chinese espionage.

Starmer has long described his desire to build a relationship with China that is "rooted in the UK's national interests" by boosting trade, a task that may become more difficult if US President-elect Donald Trump follows through on his threat to impose tariffs on all imports.

China is Britain's fourth-largest trading partner, accounting for goods and services trade worth almost 113 billion pounds ($138 billion).