The new combined cycle power plant will generate 250MW and is expected to go into operation by the middle of 2021
Siemens has secured an order to supply a power island for the new Yerevan 2 combined cycle power plant at an existing plant site in the Armenian capital.
The new combined cycle power plant will generate 250MW and is expected to go into operation by the middle of 2021. Siemens will supply an SGT5-2000E gas turbine, an SST-600 steam turbine, two SGen-100A generators, and the heat recovery steam generator.
The contract also includes the supply of the SPPA-T3000 control system. Besides supplying the equipment, the company will also operate and maintain the plant for a period of 20 years. The operation and maintenance agreement includes power diagnostic services, support from Remote Expert Center and remote operation support.
Siemens Gas and Power Power Generation Europe and CIS head Olaf Kreyenberg said: “Yerevan 2 will be the first project-financed fossil power plant project in Armenia to produce environmentally friendly electricity at ultra-low cost.
“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.”
Italian engineering, procurement and construction (EPC) firm Renco has been given the responsibility of building the entire plant.
Siemens Financial Services owns 40% stake in the power plant SPV
Italian equity company Simest, along with Renco, own 60% stake in ArmPower, a special purpose vehicle for the project. Siemens Financial Services (SFS), the company’s financing arm, owns the remaining 40% stake in ArmPower.
Renco CEO Giovanni Rubini said: “Key in making this project a reality is the perfect fit for Renco’s and Siemens’ capabilities. Both companies complement each other perfectly.
“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.”
Yerevan 2 is the second combined cycle power plant which will be built next to the existing YCPP-1. The project secured national environmental approval from the Ministry of Nature Protection in 2017.