Armenia established the Renewable Resources and Energy Efficiency (R2E2) Fund in 2006 to promote renewable energy and energy efficiency. R2E2 Fund works to finance projects, develop the energy market, and contribute to Armenia's energy security. It has invested over $40 million in more than 15 projects, including solar, wind, geothermal, and energy efficiency. R2E2 also conducts studies, provides training and financing, and helps develop laws and regulations to support Armenia's transition to more sustainable energy.

1. ARMENIA RENEWABLE
RESOURCES AND ENERGY
EFFICIENCY FUND
Karen Asatryan

2. R2E2 FUND
AREA: 29.7 ths 𝑘𝑚2
POPULATION: 3.0 mln
CAPITAL: YEREVAN
OFFICIAL LANGUAGE: ARMENIAN
MAIN NATIONALITY: ARMENIAN (98%)
CURRENCY: ARMENIAN DRAM
GDP 2018: $11,54 billion
ARMENIA’S ECONOMIC
GROWTH 2018
ARMENIA
GEOGRAPHY
5,8%

3. R2E2 FUND
ENERGY
SYSTEM Minister of Territorial
Administration and
Infrastructure of RA
Public Services Regulatory
Commission of the Republic
of Armenia

4. R2E2 FUND
ENERGY
SECTOR
 1 Nuclear PP- 400 MW
 3 Thermal PP- 1800 MW
 3 HPP (2 cascade) – 964 MW operated
 188 Small HPPs – 369 MW operated under 30 MW
 33 Small HPPs – 66 MW under construction
 9 Solar PV plant – 7 MW under operation 5 MW
 27 Solar PV plant – 100 MW under const. up to 5 MW
 Masrik 1 - 55MW under construction
 3 Wind Farm under operation – 2.9 MW
 2 Wind Farm under construction - 5.3 MW
Generation Capacities

5. ENERGY
SECTOR
Electricity supply from power generating plants in 2018
7424 mln. kWh
26%
44%
17%
13%
Nuclear Thermal HPP Renewable
PLANTS Mln.kWh
Thermal 3238.8
Nuclear 1898.1
HPP 1297.80
RE 989,44
SHPP 981.50
Solar 6.14
Wind 1.80

6. Electricity consumption in 2018,
by consumers - 5388.3 mln.kWh
34%
4%
23%
2%
3%
1%
33%
Population
Budget organizations
Indusrty
Transport
Irrigation
Water supply and water drainage
Other consumers
Consumers Mln.kWh
Population 1815.2
Industry 1265.8
Budget organ. 211.6
Irrigation 170.3
Transport 96.2
Water supply 62.2
Other 1766.9
ENERGY
SECTOR

7. R2E2 FUND
Summary
• Year of establishment: 2006 by GA,
• Board members: 9 Government
and 2 Public representatives,
• Number of worker։ 25 person,
• Number of projects։ more than 15,
• Amount of investment: over 40 mln USD,
• Revolving fund around: 12 mln USD,
• Accreditation to Green Climate Fund,
• Professional engineering laboratory.
R2E2 Fund is an environment forming institution in the area of
renewable resources and energy efficiency. The R2E2 Fund was
established by the Government of RA in 2006.
ArmeniaRenewable
Resource
andEnergyEfficiency
Fund

8. R2E2 FUND
• Facilitate/Finance investments in RE and EE sectors,
• Promote RE and EE market development,
• Contribute to Armenian’s Energy Security,
• On behalf of the Government organize implementation of credit
and grant projects promoting the sector development,
• Legal regulatory improvement,
• Introduction and implementation of innovative Projects in RE&EE
• Capacity enhancement of Public and Private sector,
• International cooperation.
The main mission of the Fund
ArmeniaRenewable
Resource
andEnergyEfficiency
Fund

9. +
RE and EE sector Surveys, Feasibility studies
Preliminary Energy Audits and Investment
grade audits
Turn-key services (energy audit, detailed
design, procurement, EPC and PM)
Financing of EE projects through the banks and
directly
Assistance in elaboration of laws, strategy and
regulations: Preparation of NEEAP
Measurement and verification of Energy
Saving Measures in Public Facilities
Trainings, Workshops, Exhibitions and Energy
weeks
Main ActivitiesR2E2 Fund Operation Fields
Energy Efficiency
Solar thermal
Solar PV
Geothermal
Wind
ArmeniaRenewableResource
andEnergyEfficiencyFund
Fields and activities

10.  RA Government, Ministries
and other state entities
Public organizations
Municipal organizations
Business entities
Households
BENEFICIARIES PARTNERS
 RA Government, including other
public bodies
 Local banks and credit
organizations
 International organizations
 Non-Governmental Organizations
Beneficiaries and Partners
ArmeniaRenewableResource
andEnergyEfficiencyFund

11. FINANCING MECHANISM
ArmeniaRenewableResource
andEnergyEfficiencyFund
Government
Revolving fund
Public
Banks
Community
Services
Donors
Other
Private
Public
Services

12. The objective of the project is to finance the EE&RE investments in communities of
Armenia. The Project launched in March 2017.
COMMUNITY-BASED ENERGY EFFICIENCY PROJECT
FOR MUNICIPAL FACILITIES
31 communities were completed
Completed projects
Solar water heater- 10
Street lighting – 22
Solar PV system - 28
EMs in Music school -1
EMs in kindergarten – 4
EMS in Municipality building -1
 Investment- 0.4 Mln USD
 Annual Energy Savings- 750.000
kWh/year
 Reduction of CO2- 327 Tonn/year

13. GEFF PROJECT
ArmeniaRenewableResource
andEnergyEfficiencyFund
 Investments 2,082,102 USD
 Nominal capacity of installed solar PV systems 3,213 kW
 Projected energy efficiency 4,980 kWh
 CO2 annual reduction 2,301 ton
In the project framework, the R2E2 fund experts have studied
and certified 23 energy efficiency financing projects since April
2019.

14. ENERGY
EFFICIENCY
 Residential Sector – 40%
 Public Sector – 50%
 Industry Sector – 14%
 Transport Sector – 22%
 Agricultural Sector – 15%
POTENTIAL IN ENERGY EFFICENCY
Potential for energy saving is around 34%

15. ENERGY EFFICIENCY PROJECT 2012-2018
26 – Educational institutions
(schools, kindergarten, university)
11– Penitentiaries
9 – Street lighting
7 – Administrative (municipal,
government)
5 – Hospitals, clinics)
5 – Ttheatres
4 – Scientific research institution
The project objective is to reduce energy consumption at social and public
facilities. The Project introduced Innovative Procurement method- NPV based
Procurement.
 Cumulative investments: 10.35 mln USD
 Number of public facilities commissioned 186
 Payback 4-8 years, average 6 years
 Energy Efficiency up to 79 %, average 50%,
 Saved 544 mln kWh/year
 CO2 annual reduction – 145,000 ton/year
PUBLIC ENTITIES MAIN RESULTS
ArmeniaRenewableResource
andEnergyEfficiencyFund

16. ENERGY EFFICIENCY
PROJECT

17. 19
EE investments $322,000
Annual savings $41,223
Simple payback 8 years
Service fee $25,350
• Replacement of windows
• Insulation of walls
• Heating system (natural gas
condensation type boiler
• Replacement of external
doors
• Insulation of the roof
KANAKER-ZEITUN MEDICAL CENTER IN YEREVAN: BEFORE-AFTER

18. 126 Communities
2700 pcs Solar water heater
124pcs/411 kW Solar PV units instalation
3600 ton CO2 annual reduction
The Project implementation started in
2017. The objective of the project is to
reduce energy consumption of
households of non-gasificated
communities by using renewable
energy sources and decrease
greenhouse gas emissions.
“
ArmeniaRenewableResource
andEnergyEfficiencyFund
Energy efficiency improvement project” in non-gasified communities

19. USA national laboratory (NREL) and Armenian «SolarEn» company
together build the first wind energy resources map for Armenia.
The wind recourses was estimated around 800 MWp.
WIND
ENERGY
Some site are under survey
2003-2008

20. R2E2 FUND
SOLAR
ENERGY
Solar Potential of Armenia
Average 1,720 kWh/year per square meter, compared with an of 1,000 kWh/year in Europe.
One quarter of the country’s territory has an annual capacity of 1,850 kWh per m2 of
solar energy and more than 300 sunny days in a year.

21. The Grant Agreement between the Republic of Armenia and International Bank for Reconstruction and
Development was signed on June 5, 2015 for Preparation of Utility- Scale Solar Power Project out of the
grant funds provided under the Scaling-up Renewable Energy Program in Low Income Countries (SREP) of the
Strategic Climate Fund.
Utility Scale Solar Power Project
Feasibility studies were conducted in:
DASHTADEM 1 PV PLANT - 12.5MWp
GAGARIN PV PLANT - 15.24MWp
MASRIK 1 PV PLANT - 55MWp
MASRIK 2 PV PLANT - 19.4MWp
MERDZAVAN PV PLANT - 5.5MWp
TALIN 2 PV PLANT - 12.5MWp
Negotiate for 150 MWp
ArmeniaRenewableResource
andEnergyEfficiencyFund

22. MASRIK 1 PV PLANT - 55MW
The first Utility-Scale Solar PV Plant of 55
MW to be constructed in the region
As a result of tender the lowest tariff was
proposed:
The proposed tariff is 0.0419 USD
excluding VAT.
The Government Support Agreement
(GSA) has been concluded between the
Government of the RA and FRV MASRIK
CJSC on July 18, 2018.
PV plant launch date is January 2021.

23. Armenia Geothermal Exploratory Drilling
Project
Drilling of two slim wells including
full analysis of all received data. Phase
I of the project completed with the
drilling of two exploratory wells.
The first exploration well, B-1, was
completed at 1500m and tested in
September 2016. Result 130o C.
The second well, B-2, was completed at
1684m and tested in November 2016.
Result 130-140o C.
Phase 1 Phase 2
Drilling of one industrial size well
including Feasibility study and
Transaction advisory.
For the time being
implementation of the second
Phase of the Project is temporarily
stopped until R2E2 understands
the interests of international
investors.
ArmeniaRenewableResource
andEnergyEfficiencyFund

24. PARTNETS
SREP

25. BENEFITS OF HAVING GREEN FUNDArmeniaRenewableResource
andEnergyEfficiencyFund
• More flexible in terms of working/financing,
• Work independently from the Government
• Out of political changes
• Fund is a natural choice for international finical organizations
• Could implement different activities (investments, surveys, Project
management, government support projects),
• May use different business models in Project implementation
• Could be compatible and more effective than ESCOs or businesses
(as there is not profit issues)
• Can generate his own income and be self-sufficient
• Can use a revolving fund so use the money once already invested

26. THANK YOU
Karen Asatryan
Director
Armenia Renewable Resources and Energy Efficiency (R2E2) Fund
29/1 Sayat-Nova Ave., 0001 Yerevan, RA
Phone: +(374-10) 58 80 11, 54 51 21, E-mail: info@r2e2.am URL: www.r2e2.am