Armenia Sustainable Energy Finance Project
2010 – present
Supported with funds from the Ministry of Finance of Austria
The IFC Armenia Sustainable Energy Finance Project is designed to establish a sustainable market for energy efficiency and renewable energy investments, and to contribute to the energy self-sufficiency of Armenia by working with local and international financial institutions.
The Challenge
Despite good land and water resources, Armenia imports around two-thirds of its energy. Armenia’s primary generation equipment in thermal power plants does not meet international technical, economic and environmental performance standards. Obsolete domestic generation equipment, and under-investment in renewable energy generation capacity, particularly in small hydro power plant capacity, are the major barriers to greater energy efficiency.
The Armenian industrial sector could save up to 14.5 percent of its energy costs by improving energy efficiency. However, no energy efficiency financing products target this opportunity. There is also low awareness among Armenian companies about the potential for operational cost savings through energy efficiency investments.
The IFC Approach
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Support development of renewable energy financing through local financial institutions
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Help financial institutions market energy efficiency lending
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Improve the regulatory framework for the development of renewable energy
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Increase awareness among renewable energy project developers and design companies on the application of modern design and technologies to ensure the long-term sustainability of renewable energy projects
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Build awareness and market demand for sustainable energy finance through a broad public awareness campaign.
Expected Impact
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35 Megawatt (MW) new renewable power generation capacity installed by 2015 through client investments
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120 Gigawatt Hour (GWh) per year increase in renewable energy generation through client investments by 2015
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70,000 tons greenhouse gas emissions avoided per year
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20 GWh annual energy savings.
Key Achievements
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The project signed an Advisory Services agreement with Ameriabank, an IFC investment client, to develop financing schemes for renewable energy projects. As a result, the bank provided financing to eight small hydro power plants with total installed capacity of 19.58 MW and annual generation of 70.1 GWh. Expected greenhouse gas reductions are estimated at 19,577 tons of CO2 equivalent per year.
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The project organized the Energy Efficiency Expo 2011 to provide solutions for local businesses to become more energy efficient. Over 40 Armenian companies showcased their products and services, helping businesses reduce their energy consumption and increase profitability.
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The project signed a cooperation agreement with the Ministry of Energy and Natural Resources of Armenia to increase the efficiency of Armenia’s energy system. IFC helps the government develop reliability indicators to enhance the security of the power system, and to integrate new renewable energy capacities into the overall power system.
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The project provided the Ministry of Energy and Natural Resources of Armenia with recommendations on policy improvements based on the analysis of a feed-in tariff for renewable energy.
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The project assessed the design and construction of five small hydropower plants in Armenia to identify areas for improvement. The project provided recommendations on the quality of construction materials, discrepancies between design and construction, and the quality of electrical installations, improving the reliability and security of small hydro power plants.
For more information please contact: Tigran Parvanyan, Project Manager, TParvanyan@ifc
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