Armenia is heavily reliant on energy resources from abroad: 75 per cent of the country’s primary energy is imported. It is therefore all the more important to save energy wherever possible, to avoid being at the mercy of fluctuating energy prices.
The residential sector is still one of the main contributors to harmful greenhouse gas emissions. However, this is starting to change. The EBRD works with its partners to provide credit lines to this segment so that homeowners can save energy and money.
Less energy, lower bills
Suren Janoyan, who lives with his family in Gyumri, saw an opportunity to make his home more comfortable than the previous one, when he moved into his new house a year and a half ago.
“I invested in a new solar water heating system because it’s both good for the environment and cheaper,” Mr Janoyan said. “It was a great decision. We always had trouble to get the right water temperature with our boiler in our previous home, but that’s now a problem of the past.”
The new heating system has helped him to save almost €300 on his utility bills per year – a real difference and long-term benefit for the whole family.
He is one of about 9,500 homeowners who have benefitted from the credit lines of EBRD partner financial institutions in Armenia. However, the offer is not only available to residential homeowners, but also to commercial businesses.
Growth opportunities for energy-intense industries
Agricultural greenhouses require a lot of energy to keep the temperature warm inside their glass structures. Vegetable producer LLC Alternative Energy is well aware of this. The company is located in the village Dzoraghbyr, not far from the capital Yerevan, and produces about 4,500 tonnes of tomatoes and cucumbers in greenhouses each year.
Energy consumption accounted for a significant amount of costs for the business. This, combined with volatile energy prices, made the company look into opportunities for savings.
The company took out a loan of US$ 2.3 million to finance various measures to use energy as efficiently as possible: new energy-saving screens, boilers and an automatic control system. This investment has helped the vegetable producer save more than US$ 400,000 per year.
“The investment has exceeded our expectations and helped us to achieve up to 50 per cent of energy savings,” said Armen Sargsyan, Director, Alternative Energy LLC. “This has helped us achieve long-lasting change for the years to come and makes us more competitive in the agriculture market”.
A long-lasting impact
The idea of taking out a loan to finance sustainable energy equipment or measures is still new to many Armenians. That’s why the EBRD works together with the banks to build a market for such investments by providing expert advice for potential clients on the best available energy saving technologies, also conducting verification visits to ensure equipment has been correctly installed.
“The EBRD is committed to building a sustainable, competitive economy – here in Armenia as much as elsewhere,” said Mark Davis, Head of the EBRD’s Yerevan office. “The work that we do with our partners to help businesses and households identify and finance the right energy efficiency measures is a vital part in this process”.
“Energy efficiency is at the core of EU energy security policy and we believe that we can also help Armenia to be more energy independent as part of the EU family. The EU is increasing its support to Armenia in the energy sector through many other projects,” added Ambassador of the EU Delegation to Armenia Piotr Świtalsk.
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