Total capacity of autonomous solar PV producers exceeds 10,000 kW

18 Feb 2019

Due to sustainable cooperation of the state-private sector-financial institutions, the total capacity of solar energy autonomous producers has reached 10 MW

10 MW Capacity - that's the solar energy capacity of the autonomous producers mainly installed on the rooftops, producing electricity for  their own needs. This indicator is just the beginning of an unprecedented development that made it possible to register with the attention of the state system in a short period of time, due diligence policy and regulatory framework.

2019 The RA Governmental Program 6.2 Energy Sector, approved by the RA National Assembly, envisages at least 10% of the solar power stations' share in the internal consumption structure until 2022. Although the government program focuses on industrial-scale solar power plants under construction tender, our observations can be made as regards the development of a parallel increase in the share of self-generating stations.

As a result of expert evaluation of the Armenian Energy Agency, it is evident that, based on the average rates of the development of solar energy 2016-2018, in 2023 it can have 960 MW capacity, of which 660 MW will be industrial scale stations and 300 MW autonomous producers.

Legislative improvements:

By the Decision N128 of May 25, 2016 of the Public Services Regulatory Commission of the Republic of Armenia the solar power plants have the opportunity to sell electricity with net-metering  to the “Electric Networks of Armenia” CJSC.

On 21 December, 2017 The National Assembly of the Republic of Armenia adopted Laws HO-262 and HO-261-N, according to which the RA Law "On Energy" has revised the limit of 150 kW, setting it at 500 kW for legal entities. For the major consumers of electricity, there was a legal basis for implementing the functions of autonomous energy producers.

The RA Law "On Energy Saving and Renewable Energy" establishes a provision on the amount of non-provision of electricity supplied by an autonomous energy producer and an electric energy distribution licensee using renewable energy resources, and the power transfer schedules. The legislative package allows these autonomous manufacturers to install solar plants without the license or additional tax liability, to supply electricity to the Electric Networks of Armenia.

The net-metering system has a number of advantages. Physical and/or legal entities may install renewable energy-producing plants for their own needs, with respectively 150 kW and 500 kW installed capacity. Throughout the year the excess energy is easily transferred to the autonomous producer or sold to ENA within the Power Purchase Agreement, at 50% of the daytime tariff. As a result the solar energy producers' own consumption is carried out without loss or interim obligations. Moreover, the producers do not need to purchase power accumulators with the high cost and short-term service.

It should be noted that due to the well-organized awareness campaigns, the sustainable development of the state-private sector-financial institutions cooperation, it became possible to increase the number of autonomous producers. Namely, as of February 10, 2019 there are 836 autonomous producers with 9991.71 kW installed capacity, 73 more stations of 2799.28 kWs are under construction.

It is important to note that solar energy development mechanisms have created a profitable consumer market for more than a dozen private entities, creating job vacancies that require high professional skills. Several of these organizations were included in the list of major taxpayers in 2018.

Attached infographics present the pace of development of autonomous power stations by capacity, quantity, and percentage growth by months and years in 2017-2018.