1. ARMENIA SUSTAINABLE ENERGY FINANCE PROJECT Tigran Parvanyan Armenia Sustainable Energy Finance Project Manager

2. Համաշխարհային բանկի խումբ IBRD International Bank for Reconstruction and Development IDA International Development Association ՄՖԿ International Finance Corporation MIGA Multilateral Investment and Guarantee Agency Est. 1945Est. 1960 հիմն. 1956 Est. 1998 Role To promote institutional, legal and regulatory reform Նպաստել մասնավոր հատվածի զարգացմանը To reduce political investment risk Clients Governments of member countries with per capita income between $1,025 and $6,055 Governments of poorest countries with per capita income of less than $1,025 Անդամ երկրների մասնավոր ձեռնարկությունները Foreign investors in member countries Products Technical Assistance Loans Policy Advice Technical Assistance Interest Free Loans Policy Advice Ներդրումներ կապիտալում / վարկե ր Ռիսկերի կառավարում Խորհրդատվություն Political Risk Insurance 2

3. 3 Հայաստանում էներգետիկ սակագները >7,050 c.m./month it makes sense to burn more to save $$$!!!

4. 4 ENERGY CONSUMPTION in RESIDENTIAL SECTOR # of households in multiapartment buildings Annual Energy consumption Natural gas: 170 m 3 /capita Electricity: 1,550 kWh/capita An average household with 4 family members is spending over AMD310,000/year on energy costs. ~AMD50,000/month during heating season! Source: ArmStat 2012

5. Challenges for EE in Armenia 5 What stops companies from doing more EE? Awareness: less than 50% believe EE is important Lack of expertise: companies underestimate EE savings by 70% Lack of leverage: only 17% applied for external financing Lack of effective policy instruments promoting EE What stops households from doing more EE? Lack of awareness about technologies and measures expected savings Lack of financing opportunities Absence of incentives promoting EE, e.g. tax breaks, rebates, etc. High cost and shortage of EE materials/equipment

6. THANK YOU 6 Tigran Parvanyan Project Manager, Armenia Sustainable Energy Finance Project +374 10 545 242 TParvanyan@ifc.org