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
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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
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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
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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
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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