The document summarizes Armenia's potential for developing small hydropower projects (SHPP), wind, solar, and geothermal energy. It notes that Armenia has technical SHPP potential of 250-300MW, wind potential of 300-500MW, and solar potential of over 1000MW. The document outlines the current generation capacity from various renewable sources in Armenia and projections through 2020. It also discusses policy incentives for renewable energy development, barriers to investment, and opportunities for financing SHPP projects through organizations like the Renewable Resources and Energy Efficiency Fund.

1. Development of SHPP in Armenia
TAMARA BABAYAN
Director of R2E2 Fund

2. Hydro
Resources
250-300MW

3. Wind
resources
300-500MW

4. Solar
resource
>1000MW
TAMARA BABAYAN
Director of R2E2 Fund

5. Geothermal
resources
25-50 MW

6. Technical Potential for Selected RETes
Technical Potential of Selected Renewable 2010 2015 2020
Energy Technologies
Small Hydro Power Projects
Generation capacity in place [MW] 102,5 179 216,5
Investment cost installed [USD/kW] 500-700 1200 1500
Production costs [USD Cent/kWh] 3,3-4,9 6 7.4
Wind Power
Generation capacity in place [MW] 2.6 102.4 302.4
Investment cost installed [USD/kW] 2100 2040 2000
Production costs [USD Cent/kWh] 10.3 10.8 11.8
Photovoltaics
Generation capacity in place [MW] 0.1 0.3 1
Investment cost installed [USD/kW] 6000 5000 2700
Production costs [USD Cent/kWh] 47 38 24
Geothermal
Generation capacity in place [MW] 0 0 25
Investment cost installed [USD/kW] 0 0 3000
Production costs [USD Cent/kWh] 0 0 6.75

7. Base Growth Case for the Development of RETs in
Armenia
GWh
2 000
1 800
1 600 192,0
192,0 154,0
1 400
192,0 138,6
1 200 192,0 123,2
1 000 107,8 755,0
92,4 628,4
800 77,0 512,8
424,9
61,6 344,8
600 255,7
46,2 179,2
30,8 108,8
400 15,4 48,7
22,7
540,2 564,9 587,6 608,6 625,6
449,9 483,3 517,3
200357,0 412,1
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Small HPPs Base Wind Base Growth Solar PV Base Growth Geothermal Base growth
7

8. Current Situation
Generating units Number of plants Capacity, MW Annual Production,
GWh
SHPP 111 149 482
Wind 1 2,64 5,0
Biomass 1 0,835 5,9
Solar PV 1 0,01 0,015
Total 114 152,49 492,92
SHPP construction 80 154 578
Wind construction 2 19,05 30,1
ALL 116 325,54 1101,02
8

9. Construction and Generation Licenses
30
29 29
25
25
23
20 21
19
15
15 15
14
13 11
12
10 11
9
5
5
4
0
2004 2005 2006 2007 2008 2009 2010 2011

10. Policy Incentives
• Guaranteed purchase of produced electricity within 15
years after commissioning /production license/
• Fixed tariff
– SHPP /natural flow/ -19.28 AMD/kWh - $0.052
– SHPP /irrigation/ - 12.853 AMD/kWh -$0.035
– SHPP /drinking water/ - 8.57 /kWh -$0.023
– Wind – 33.756 AMD/kWh – $0.091
– Biomass – 36.928 AMD/kWh -$0.1
• End user tariff /population/- 30 AMD/kWh (day)-$0.08;
20AMD/kWh night - $0.054
10

11. Barrier Removal and Facilitation
• Information
– R2E2 has updated SHPP scheme of Armenia
– R2E2 has identified barriers and submitted to the Government
– TA programs financed by IFIs
• Technological
– Lack of water merits points
– Capacity of engineering design
– Lack of equipment in local market
– Pipes
• Financing
– Exaggerated risk of investment
– Lack of collateral
– High interest rate
– Lack of long-term loans
11

12. Barrier Removal and Facilitation
Barrier Facilitation
INFORMATIONAL
Identification of Barriers R2E2 has identified and submitted to
Government special Task Force
Information on potential sites R2E2 has updated SHPP scheme of Armenia
Information on technologies and market TA programs financed by IFIs
TECHNOLOGICAL
Lack of water merits points SHPP scheme
Capacity of engineering design TA of IFIs, local bank experts
Lack of equipment in local market Local production facilities including GRP pypes
FINANCING
Exaggerated risk of investment IFIs involvement
Collateral Installed equipment serve as collateral
Lack of long-term loans IFIs support
High interest rate IFIs support
12

13. Financing Opportunities
• R2E2 Fund – WB $5mln., EBRD $7mln., Local Bank
$3mln., co-financing >30%, actual $28 mln. -27 SHPP
• R2E2 Revolving – $9.2 mln.
• IFC/FMO – 15 SHPPs (about 22 mln. USD)
• KFW – 1st tranche – 14 SHPPs – 6 mln. Euro
• KFW – 2nd tranche 11 mln. Euro AA SHPPs
13

14. Forests-10%
Gas-0%
Oil-0%
Coal-0%
Renewable is not only
energy security but also
National security for my
country

15. RENEWABLE RESOURCES AND ENERGY EFFICIENCY
FUND
Tamara Babayan
Director
Renewable Resources and Energy Efficiency Fund
director@r2e2.am
www.r2e2.am; www.reweek.am