Energy efficient investment opportunities in Armenia discussed in Yerevan as part of EBRD`s Energocredit Programme

ArmInfo. EBRD's Energoredit Programme held an Energy Efficiency Forum for Armenia's businesses under the umbrella of EU4Energy Initiative by the European Union Delegation to Armenia during the EU Energy Days, on September 28. 

"The EBRD is committed to build a sustainable, competitive economy - here in Armenia as much as elsewhere," says Mark Davis, Head of the EBRD's Yerevan office. "The work that we do with our partners to help businesses and households identify and finance the right energy efficiency measures is a vital part in this process," A 125 million USD Financing Facility is a part of the Caucasus Energy Efficiency Project (CEEP). Launched in 2007, CEEP aims to help industrial and residential clients reduce their energy intensity and make greater use of renewable energy sources. The facility is also supported by grant funding from the European Union Neighborhood Investment Facility, the Austrian Federal Ministry of Finance as well as by the EBRD Shareholder Special Fund.

Karen Arabyan, Director, Energocredit (EBRD ArmSEFF) says that in the past three years, Energocredit financed in Armenia more than 9,000 households and 17 companies with loans worth 15 million EUR for energy efficient investments.  With this investment amount, Arabyan says, clients were able to save around 145GWh energy per year. This equals to the annual energy demand of approximately 10,000 households and will reduce to CO2 pollution by 23,000 tons.  According to Mark Davis, Armenia is a country will small energy resources and it is necessary to upgrade the efficiency of energy consumptions to make the country less depending on foreign sources.

"Energy efficiency and renewable energy are in the basis of the EU commitment to mitigate the global warming changes. We believe that the Government of Armenia will launch incentives for energy efficient investments and the EU will support the Government and the citizens of Armenia to contribute to Armenia's efficiency and independent use of alternative energy resources," mentioned Hoa-Binh Adjemian, the Head of Cooperation Section of the Delegation of the European Union to Armenia.

Deputy Minister of Economy of Armenia Hayk Haroutiunyan says the key guarantor of efficient policy in the given fields is the right financing tool. On the example of the household equipment, for instance, a refrigerator, one can see that the up-to-date models with energy efficient criteria to save power consumption by 70%-80%, he explains. Under the national program of energy efficiency, the target of 3.3% was outstripped twofold as early as in the first stage - up to 2015. A new program for 2018 and 2020 has been drafted and quite ambitions goals have been set - to reduce the primary energy consumption to 40%. 

Energocredit is a program of the European Bank for Reconstruction and Development (EBRD) in the Caucasus region. Together with participating local financial institutions, Energocredit finances energy efficient and renewable energy projects of businesses and individuals.

The Energocredit loan package offers additional benefits as a cash back payment and free technical expert advice. The European Union Neighborhood Investment Facility rewards the environmentally friendly investments with 10% or 15% cash back of the loan amount, the expert advice is provide by the Austrian Ministry of Finance.  The financing for corporate loans is carried out with the help of partner banks and financing institutions in Armenia, such as HSBC Armenia, Ameriabank, ACBA Credit Agricole Bank, ACBA Leasing, Inecobank, SEF International and ArmSwissBank.

Energocredit provides also residential loans to individuals to do energy efficient housing renovation and to purchase energy saving equipment for cutting energy costs of heating, air conditioning and electricity use.  This investment helps the households to reduce energy consumption to save both money and the environment.