ContourGlobal and Republic of Armenia acquire Vorostan hydro plant in Armenia
Written By: Tracy Dawson Roses
August 11, 2015
On August 11, ContourGlobal and the Republic of Armenia announced acquisition of the assets of the Vorotan hydroelectric facility, a series of three individual power plants with a total electrical capacity of 405 MW on the Vorotan River in southern Armenia.
ContourGlobal also announced that the International Finance Corporation, a member of the World Bank Group, has acquired a 20% interest in ContourGlobal Hydro Cascade to help acquire, operate, and rehabilitate the Vorotan Hydropower Cascade.
Under the terms of the agreement, ContourGlobal Hydro Cascade will own and operate the three hydroelectric facilities located on the Vorotan River and will supply power to the Armenian grid under a long-term power purchase agreement. ContourGlobal will invest EUR 50 million ($56 million) over the next six years in a refurbishment program to modernize the plants and improve their operational performance, safety, reliability and efficiency.
The Vorotan Hydro Cascade accounts for roughly 15% of the installed capacity of Armenia’s electricity system and provides sufficient energy to power 250,000 homes.
The acquisition will enlarge ContourGlobal’s renewable energy portfolio, which currently comprises approximately 1000 MW of hydro, wind, solar and biogas production in Latin America, Europe and Africa.