Expansion of renewable energies and energy efficiency (Phase III)

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Armenian electricity generation is dominated by fossil fuels and is therefore heavily dependent on primary energy supplies from abroad (primarily oil and natural gas from Russia and Iran). Renewable energies and energy efficiency measures are the focus of the Armenian government's strategies for a more independent and climate-friendly energy supply for the country. The module objective of the FC project is to contribute to the expansion of renewable energies and energy efficiency measures in Armenia by providing refinancing funds. The FC funds will be used to provide refinancing funds to Armenian banks that provide loans for private sector investments to promote renewable energies and energy efficiency measures in Armenian micro, small and medium-sized enterprises (MSMEs). The borrower is the Armenian Central Bank (CBA); the project sponsor is the German-Armenian Fund (GAF), which is based in the central bank. The target groups of the project include investors and operators of renewable energies, MSMEs and commercial banks, who can open up new business areas in the areas of renewable energies and energy efficiency through the long-term financing of the projects. The GAF program for the promotion of renewable energies, financed by the German Federal Financial Cooperation, has been in existence since 2004. In this phase, the focus is on financing photovoltaic systems for private households and companies as well as energy efficiency measures in MSMEs (e.g. building insulation, renovation of heating and cooling systems, replacement of outdated production machines with more efficient systems).