Alliance to Save Energy ARMENIA FACT SHEET

BACKGROUND flexible financing mechanisms for energy efficiency and Energy supply security became a critical issue for heating projects with municipalities and housing Armenia in late 1991, when Azerbaijan shut down the main associations, mobilized communities to initiate residential pipeline transporting Russian gas to Armenia. This meant heating projects, trained municipalities and heating that a smaller pipeline through Georgia, which was subject companies to design and seek financing for energy projects, to disruption, remained the only source of natural gas used brought together disparate energy stakeholders from all for electricity generation and heating. The ensuing energy sectors to start energy policy dialogue and promote energy crisis was the main reason for the Armenian Government’s efficiency reform. controversial re-opening of the Metzamor Nuclear Power Plant, shut down after the 1988 earthquake. This action The MUNEE Program works in four key areas in Armenia: alleviated the immediate energy shortfall, but despite the policy reform, residential energy efficiency and heating, extensive safety improvements made in recent years, this education and awareness campaign, municipal energy Soviet-designed facility is considered inherently unsafe by efficiency networking. international nuclear regulatory agencies. RESULTS While Armenia has significant hydroelectric power The past and present accomplishments of MUNEE in potential, increased output in this sector has resulted in the Armenia are the following: reduction of water level in the country’s largest lake – Sevan – to ecologically dangerous levels. Policy Reform ƒ Established the Armenian Energy Efficiency Council (AEEC), The Heating sector has one of the largest potentials for which brought together ministry officials, non- energy efficiency improvement and for reduction of governmental organizations, academia, energy significant environmental externalities as a result of the businesses and donors. AEEC aims at developing a collapse of the district heating systems in early 1990s, and dialogue on national energy policy issues and identify the present heavy reliance on wood and electricity for priority areas for energy efficiency reform. residential heating purposes. ƒ Provided technical assistance for the development of Energy end-use is where Armenia’s energy sector is Law on “Energy Saving and Renewable Energy” of the disfigured by inefficiencies, significant energy losses and Republic of Armenia which included: degraded infrastructure, all of which contribute to a system ƒ AEEC roundtable discussions of intermediate that in the present shape is unsustainable from both the drafts economic and environmental perspective. ƒ Public hearing (NGOs and media) CHALLENGES ƒ Ratification of the law in December 2004 National policy level: The main barrier at the national ƒ Ongoing work on the development of secondary level is the lack of legal framework for the promotion of legislation and ordinances, including bylaws on energy efficiency measures. Conducting Energy Examinations, the National standard for Local government: The key problems at the municipal determining the energy intensity of energy consuming equipment level are related to lack of financial resources and poor and processes passed by the State Standardization energy management and planning practices. Committee in March 2007. Housing associations: In the residential energy sector where most of the end-use consumption is, the inefficient ƒ Current efforts focus on updating the Construction Code use of energy resources is mainly due to low capacity of the on Building Thermal Protection. population to invest, as well as the poor organizational ƒ The National Program on Energy Saving and Renewable Energy capacity and awareness of Home Owners Associations (ESRE) was developed and adopted by the (condominiums). Government of Armenia in January, 2007. The Program also included energy audits of all large energy APPROACH consumers in Armenia, as well as assessment energy The Alliance to Save Energy launched Municipal Network end use and efficiency potential in all sectors of the for Energy Efficiency (MUNEE) in Armenia in 2000. Since economy. As a result, the country-wide and sectoral then, the Alliance has created a strong understanding of

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future

Alliance to Save Energy ARMENIA FACT SHEET

energy efficiency potentials were assessed and used to for all schools in Armenia and held energy education propose policy actions to utilize this potential. workshops in high schools.

Residential Energy Efficiency and Heating Project Financing ƒ Conducted condominium surveys in a number of cities ƒ Launched residential energy efficiency revolving funds on energy efficiency and heating status, problem areas, in the cities of Gyumri and Vanadzor in collaboration needs and priorities in order to design training with Third Nature NGO and the Lori Marz programs. Condominium Center, respectively. The Revolving ƒ Trained and mobilized condominiums for initiating Funds in both cities are providing micro loans to loan-financed community operated heating projects. condominiums for small scale building energy-efficiency projects. The projects have already covered over 600 ƒ Researched, published and distributed analytic reports apartments in 16 projects, which are yielding 350 MWh and leaflets on the following topics: in annual savings. ƒ Heating Equipment and Service Providers Market Strengthening the Municipal Energy Efficiency Assessment Network in Armenia/Outreach to Cities ƒ Decentralizing Residential Heating in Armenia: Review of Pilot Projects ƒ Creating strong ties with local authorities and municipalities to discuss and share experiences on ƒ Review of 22 Energy Efficiency Laws: Guide for energy efficiency issues in Yerevan, Kapan, Policy-Makers Yeghegnadzor, Tsaghkadzor, Ararat, Sisian, Hrazdan, ƒ Energy Efficiency Advice Booklet Charentsavan, Sevan, Gumri and Vanadzor. ƒ Condominium Heating Guide ƒ Organizing study tours based on success stories in the ƒ Current Energy Saving Status and Needs in field of EE within residential and municipal sectors Armenian Condominiums (Poland, Lithuania, Ukraine). ƒ Barriers to Residential and Municipal Energy ƒ Provided training on EE financing tools (Yalta, Kiev, Efficiency in Armenia Puscha –Vodica, Ukraine); municipal energy planning training for 14 Armenian municipalities (Armenia, ƒ Participatory Assessment of Low-Income Moldova). Household Needs and Financing Mechanisms in Community-Operated Heating Projects ƒ Holding a dialogue with local municipalities on establishment of Municipal Energy Working Group to Education and Awareness Campaign address energy efficiency financing and targeted social assistance to low-income households for heating ƒ Conducted Building Energy Efficiency Program software purposes. ad a ptation and training for energy efficiency project design and business planning: trained 5 trainers from ƒ Compiling and disseminating “Armenia – Energy News ACEE and 11 municipalities. Review” electronic newsletter and publishing articles on housing EE in local newspapers. ƒ Organized condominium trainings, workshops and day- to-day consultations on residential energy efficiency and ƒ Contributing to the MUNEE.org website, providing heating highlighting: regular updates on achievements in Armenia

ƒ technical and institutional solutions for energy efficiency This work is funded by the U.S. Agency for For More International Development Information: ƒ financing sources and mechanisms Astghine Pasoyan ƒ low-income issues in heating projects [email protected] ƒ role of ESCO’s and municipalities. Yerevan, Armenia www.munee.org Developed a renewable energy educational poster ƒ Last Updated May 2007

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future