YEREVAN, JUNE 27, ARMENPRESS. Siemens will supply a complete power island for the new Yerevan 2 combined cycle power plant at the existing plant site in the Armenian capital, the German multinational conglomerate said in a news release on June 27.

The company will also operate and maintain the plant for a period of 20 years. Siemens Financial Services (SFS) – Siemens' financing arm – holds a 40 percent share in the special-purpose project company ArmPower founded specifically for this project.

Yerevan 2 is the largest single order that Siemens has ever received from Armenia, according to the news release.

The Italian engineering, procurement, and construction (EPC) firm Renco S.p.A. is responsible for building the entire plant, and together with the Italian equity company Simest S.p.A., it holds a 60 percent share in ArmPower. "Key in making this project a reality is the perfect fit for Renco's and Siemens' capabilities. Both companies complement each other perfectly," said Giovanni Rubini, CEO of Renco. "Renco is well-established in Armenia and is active in the real estate business and the civil and private construction business and will act as an investor and EPC contractor – whereas Siemens is contributing as the technology provider under the EPC contract and as the service provider to the project company ArmPower."

The new combined cycle power plant will have an electrical capacity of 250 megawatts and is expected to go into operation by mid-2021. Siemens' scope of supply includes the power island, which consists of an SGT5-2000E gas turbine, an SST-600 steam turbine, two SGen-100A generators, and the heat recovery steam generator. It also covers the SPPA-T3000 control system. In addition to the entire operation of the power plant and maintenance for a period of 20 years, the operating and maintenance agreement also includes power diagnostic services, support from the Remote Expert Center, and remote operation support.

"Yerevan 2 will be the first project-financed fossil power plant project in Armenia to produce environmentally friendly electricity at ultra-low cost," said Olaf Kreyenberg, head of Power Generation Europe and CIS at Siemens Gas and Power. "Lower energy costs will help spur growth in Armenia. Under the 20-year service agreement, Siemens will ensure that the plant continues to produce electricity economically and reliably over the long term."

"The financial participation of SFS in the project company ArmPower was crucial to realizing this project and to ensuring a successful financial close. The fact that Siemens can provide the technology, service, and financial expertise as a co-investor in the project is a win-win for greenfield power in Armenia," said Steffen Grosse, CEO of Equity Finance at SFS.

Edited and translated by Stepan Kocharyan