Armenia has prioritized the use of renewable energy resources for its energy security. However, development is hindered by a lack of regulatory incentives, limited capacity for equipment acquisition and installation, weak technical capacity among local financiers, and underdeveloped local markets.
Source: World Bank
With $40 million in low-cost financing from the SREP, Armenia aims to reduce the cost of renewable energy technologies that lie at the threshold of competing with the expected future cost of generation. For technologies such as geothermal power and utility-scale solar PV, pioneering projects backed by the SREP will help to reduce resource and
performance risks, develop local markets and expertise, and provide the government the impetus and opportunity to achieve reforms—in particular, appropriate tariffs. As experience increases, project development costs are expected to decline, and for some technologies, such as solar PV, local production may also emerge.
Armenia has no proven oil or natural gas reserves and imports all its fuel for thermal generation from Russia and Iran
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Caucasus Green Economy Financing Facility (GEFF) – SREP Armenia Renewable Energy Grant Support||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 3.00||FUNDING (USD MILLION) 20.00||MDBEBRD|
|Geothermal Exploratory Drilling Project (GEDP)||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 8.55||FUNDING (USD MILLION) 108.60||MDBIBRD|
|Private Sector Utility Scale Solar Power Support Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 26.00||FUNDING (USD MILLION) 124.00||MDBIBRD|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.