The European Bank for Reconstruction and Development recognises the potential for sustainable energy investment in Armenia and has made energy efficiency a priority in the Bank's Armenia Country Strategy.
ArmEEP is a facility whereby EBRD will extend dedicated credit lines for the financing of energy efficiency and renewable energy investments in the industrial and residential sectors in Armenia.
The main objectives of the assignment are to assist individual prospective sub-borrowers to identify sustainable energy opportunities, conduct energy audits and assess the technical and economic feasibility of the identified projects.
The services are provided for:
- Industrial Energy Efficiency,
- Renewable Energy and
- Residential Energy Efficiency.
More specifically, the services will be provided in two phases:
Phase I – Project identification and facility launch:
In this phase the emphasis lies on identification of relevant stakeholders and eligible projects and marketing activities related to promotion and launch of the facility. A facility website with both information as well as communication function will be designed and maintained.
Accompanying supporting actions will be implemented as well and comprise above all comprehensive training and guidance to local engineers and auditors.
This approach reflects the low level of awareness and skills on energy efficiency in the Armenian market, and the need to build capacity as part of the marketing efforts to potential participating banks.
Phase II – Project implementation and monitoring:
A primary objective in this phase is to establish sufficient and reliable mechanisms, which allow all parties involved in the project to cooperate in the most efficient way, based on successful collaboration and in particular in-depth understanding of the facility's objectives.
Therefore at the very beginning of the assignment the partners will elaborate and prepare Project Implementation Plan (PIP) in order to establish operational/reporting protocols between the parties (EBRD, PBs, and Consultant), indicating approach, resources and forms to be used during the entire project life-time.
The partners will provide implementation support to participating banks and sub-borrowers in the form of energy audits, project assessment reports, marketing, training and building awareness of sustainable energy financing opportunities in Armenia.
The EBRD places special emphasis o supporting investments that improve energy efficiency and promote renewable energy sources and has highlighted Armenia’s potential for sustainable energy investment as a priority in the Bank’s Armenia Country Strategy. Energy prices in Armenia are increasing and significant amounts of energy are being wasted through out-dated and inefficient equipment and a lack of monitoring and control devices.
The legal framework is in place in Armenia for the development of renewable resources. Armenian law provides that the purchase of renewable energy is mandatory through 2016 at a feed-in tariff of $0.05/kWh. The most promising renewable energy resources are wind and biomass.