Energy Efficiency Project

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The development objective of the Energy Efficiency Project for Armenia is to reduce energy consumption of social and other public facilities. The global environmental objective is to decrease greenhouse gas emissions through the removal of barriers to the implementation of energy efficiency investments in the public sector. There are two components to the project. The first component of the project is Energy efficiency investments in public facilities. This component will support energy efficiency investments in social and other public facilities, e.g. schools, kindergartens, hospitals, administrative buildings, and street lighting. The energy efficiency investments will reduce the energy consumption of retrofitted public and social facilities and reduce the CO2 emissions. Additionally, these investments will generate substantial social benefits, including increased quality of education, improved health. The second component of the project is technical assistance. This component will help remove the existing barriers to realizing the energy efficiency potential and create an enabling environment for energy efficiency in the public sector. The key areas that this component will finance include: (a) capacity building of the R2E2 Fund (Renewable Resources and Energy Efficiency Fund), including training and basic audit and monitoring equipment; (b) pipeline development and capacity building to participating public agencies, to address knowledge gaps on energy efficiency, build the demand for program financing, and improve the prospects for the sustainability of energy savings generated under the project; (c) policy development support, including efforts to support budgeting, procurement and financing of energy efficiency projects in the public sector, as well as select policy measures and energy statistics; (d) market development and capacity building of various market actors, including Energy Service Company (ESCOs), banks, construction firms; and (e) project management, including monitoring, reporting and financial audits.