The RA Government and local bodies adopted state policy directed to the increase of RE share and increasing the level of EE. One of the components of the Fund mission is promoting implementation of this policy. The Fund will periodically be involved in the following actions:
Provision of expertise interpretation and opinions on sector related laws and other legal acts
Assistance in elaboration of sector related laws and regulations
Provision of technical and consultancy services to the Government of the Republic of Armenia
The Fund tries to continuously develop the capacities of itself and the beneficiaries in RR and EE sectors. Public awareness is important for insinuation of ideology and informing about the projects. For these purposes it is envisaged to create the following units with appropriate functions:
Renewable Resources and Energy Efficiency information center
Provision of information on renewable resources and energy efficiency
Organization of coordinated public awareness campaigns and provision of information on energy efficiency labeling
Preparation of manual on energy efficiency measures for residential buildings
Assistance to sector related research capacities and development in Armenia
Renewable Resources and Energy Efficiency capacity development
Training on renewable resources
Training, seminars, exhibitions and energy weeks on energy efficiency
Promoting secondary professional education
RE and EE market analysis
Renewable resources investment projects have huge development potential in Armenia, however, private investors are not ready to do the first steps and cover the full risk related to the market entry. The Fund will organize implementation of these projects by preparing a path for future investors. It is envisaged to cover the full implementation cycle, i.e. identification of projects, pre-feasibility study, design, organization of financial schemes, control, monitoring, etc. Already the following projects are in process:
Solar photo voltaic plants creation (PV) project
Geothermal energy development project
Energy efficiency project
The Fund successfully implements technical consultancy, feasibility studies and management support in energy efficiency sector and will continue development of this direction in future:
Energy efficiency actions in public and partially private buildings
Modernization of external lightening with energy efficient solutions
Promotion of led diode traffic lights application in the RA
Financing introduction of thermal pumps
Assistance in implementation of EE measures in public buildings
Promoting application of thermal pumps
Re-equipping water supply and wastewater pumps
Assistance in municipal EE measures/programs
The financial market of Armenia offers very limited tools for sustainable energy development programs. R2E2 provides financial support to the measures implemented in RR, EE and SE sectors in the RA. These support is exercised directly by the Fund through provision of services in the mentioned sectors or financing by financial system. Projects implemented by interference of financial institutions have advantages from the point of view of the Fund, since the banks are fully responsible for payback. However, such financing increasing the cost of credit means, since loan percent provided by the banks include also bank overheads (bank margin). From the other hand, according to the current estimates of the renewable resources sector there is only USD 500,0 mln investment demand, which attraction is rather limited taking into consideration particularly the essentially reducing margin of RA public debt. It is possible to obtain those means without directly increasing the debt responsibilities of the state.
Taking into consideration the above mentioned circumstances, it is expedient that R2E2 creates an Investment fund, which shares can belong to R2E2, as well as to partially international financial organizations, investment funds and other private investors.
RE and EE development and creation of investment market in Armenia gradually created and further will increase the need of sector related professional services. Such professional services are:
Evaluation of investment projects for private investors
Implementation of energy efficiency audits
Licensing of private audit organizations (if necessary)
Energy efficiency expertise and labelling of imported and locally produced equipment
Preparation of the energy balance for the country
Introduction of professional services is an important step from the point of RR and EE sectors development in the RA. Wide application of such services will enable easy implementation of RR and EE investment projects, since proper environment, infrastructures, institutes and mechanisms will be created. This is a priority term for creation of a market for such projects.
Implementation of clean energy agenda and achievement of objectives has a big importance in international arena. Certain indicators, actions and international financial structures are specified particularly in agreements adopted by G20 countries. Armenia is eager to achieve those objectives. The Fund has the following goals:
Promote cooperation with international organizations in energy efficiency, renewable and sustainable energy sectors through creation, dissemination and popularization of new technology solutions
Promote sustainable development in energy sector, dissemination of actions directed to the reduction of negative impact on clean energy and environment
Ensure cooperation with energy agencies, international and other similar structures aimed at providing information, technical and technology assistance, reduction of economy energy consumption
Participate in International Conferences devoted to clean energy by presenting our experience, creating new relations and gaining best practice of other countries.