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Second National Energy Efficiency Action Plan for Armenia

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Second National Energy Efficiency Action Plan for Armenia SECOND NATIONAL ENERGY EFFICIENCY ACTION PLAN FOR ARMENIA ARMENIA RENEWABLE RESOURCES AND ENERGY EFFICIENCY FUND FIRST DRAFT 20 JULY 2015 Second National Energy Efficiency Action Plan for Armenia Armenia Renewable Resources and Energy Efficiency Fund FIRST DRAFT Table of Contents Table of Contents ............................................................................................................................. ii ABBREVIATIONS ............................................................................................................................. 1 EXECUTIVE SUMMARY ................................................................................................................... 3 INTRODUCTION ............................................................................................................................... 1 1 OVERALL CONTEXT OF THE SECOND NEEAP.................................................................... 3 1.1 Highlights of the Second NEEAP .................................................................................... 4 1.2 National context of energy savings ................................................................................. 5 1.3 Setting the Target ........................................................................................................... 11 2 MEASURES FOR THE PRIMARY ENERGY SAVINGS ......................................................... 22 2.1 Reducing high-voltage network losses and Enhancing reliability of Power Supply in Armenia ........................................................................................................................... 22 2.2 Reducing low-voltage electric network losses ............................................................. 23 2.3 Promotion of EE-integrated renewable energy applications ....................................... 24 2.3.1 Enforcing Net Metering for Independent Solar Electricity Producers ................... 25 2.3.2 Greater Use of Solar Thermal Energy ...................................................................... 26 2.3.3 Piloting Geothermal Heat Pumps for Scalable Centralized Heating Solutions ..... 26 3 FINAL ENERGY SAVINGS IN THE END USE SECTORS ..................................................... 28 3.1 Review of final energy saving targets and final energy saving achievements .......... 28 3.1.1 National overall end-use energy savings targets and progress towards them .... 29 3.1.2 National targets for nearly zero energy buildings .................................................. 33 3.2 Horizontal Measures....................................................................................................... 34 3.2.1 Financial Support for Energy Efficiency in All Sectors .......................................... 45 Capacity Building for Financial Institutions and Supporting the Market for Energy Services ..................................................................................................................... 57 c) Establishing and operating a EE business information centre ................................... 58 a) Combined Study tour and Capacity Building Workshop on EE Awareness Raising . 59 3.2.2 Promotion of the Covenant of Mayors ..................................................................... 59 4 ALL INDIVIDUAL MEASURES .............................................................................................. 69 4.1 Buildings Sector ............................................................................................................. 69 Project No. 5995 ii Second National Energy Efficiency Action Plan for Armenia Armenia Renewable Resources and Energy Efficiency Fund FIRST DRAFT 4.1.1 Regulatory Measures ................................................................................................ 70 Technical Regulations for Building Energy Performance .................................................. 75 4.1.2 New Construction ..................................................................................................... 75 4.1.3 Residential Buildings ................................................................................................ 87 4.2 Public Buildings and Services ..................................................................................... 104 4.2.1 Public Buildings ...................................................................................................... 104 4.2.2 Street-lighting .......................................................................................................... 108 4.3 Agricultural Sector ....................................................................................................... 111 4.4 INDUSTRY, SMEs and POWER ................................................................................... 161 4.4.1 Power Sector ........................................................................................................... 164 4.4.2 Energy Management and Clean Production Industrial and SME ......................... 165 4.4.3 Financing of Industrial and SME Energy Efficiency ............................................. 166 4.4.4 EE-Integrated Renewable Energy Sources ........................................................... 168 4.5 Transport/Mobility ........................................................................................................ 187 COMPETENT BODIES AND ASSIGNED ORGANIZATIONS ....................................................... 212 Project No. 5995 iii Second National Energy Efficiency Action Plan for Armenia Armenia Renewable Resources and Energy Efficiency Fund FIRST DRAFT LIST OF FIGURES Figure 1. Energy Efficiency Policies, Strategies and Regulations ....................................................... 3 Figure 2. Total primary and final energy sources used in Armenia since 1990, statistics and forecast. ......................................................................................................................... 5 Figure 3. Economic Growth and Energy Use in Armenia. WB 2014 ................................................... 5 Figure 4. Final energy consumption in Armenia by sector (in ktoe)* ................................................... 6 Figure 5. Total Primary Energy Sources by Fuel, 2012 ...................................................................... 8 Figure 6 Electricity generation by fuel (in GWh) ................................................................................ 9 Figure 7. GHG Emissions in Armenia until 2010 (in Gt CO2eq excluding LULUCF) ........................... 10 Figure 8. Comparison of Energy Consumption per Capita and Energy Intensity by Countries ......... 10 Figure 9. Energy Intensity (TPES/GDP) in CIS countries, 1990-2012 .............................................. 13 Figure 10. Energy Intensities of the CIS Countries ........................................................................... 14 Figure 11. Energy Losses in 0.38-110 kV network (% of energy entering the network) .................... 23 Figure 12. Solar PV Installations, 2011-2015 ................................................................................... 25 Figure 13. Estimated Trend of Installed Solar Water Heating Capacities: Output and Savings ........ 26 Figure 14. Structure of Final Energy Consumption by Sector, 2012 ................................................. 28 Figure 15. Final Energy Use Trend and Projections by Sector ................................................... 28 Figure 16. Overview of the major donor and IFI funding directions in the field of energy efficiency .. 46 Figure 17. EE/RE PORTFOLIO FOR 2010 - 2020, USD ................................................................. 49 Figure 18. EE / RE PORTFOLIO FOR 2010 - 2020, USD ................................................................ 50 Figure 19. EE / RE LOANS PROVIDED BY LOCAL BANKS IN 2010 - 2015, 1,000 AMD ................ 52 Figure 20. EE / RE LOANS PROVIDED BY LOCAL BANKS and UCOs IN 2010 - 2015 (including IFI funds, USD) ................................................................................................................. 54 Figure 21. EE / RE LOANS PROVIDED BY LFIs and IFIs IN 2010 - 2015, USD .............................. 55 Figure 22. Share of EE projects in total loans disbursed by LFIs in 2010 - 2015, % ......................... 56 Figure 23. Growth dynamics and forecast for residential and public building stock in Armenia......... 69 Figure 24. Energy Use in Residential Sector, 2010-2030. ................................................................ 70 Figure 25. Energy tariffs and Energy Consumption in Residential Sector, 2010-2015 ...................... 71 Figure 26. Natural gas import price and tariffs for two different final customer groups (2003-2015)* 73 Figure 27. Total housing stock and breakdown by urban and rural settlements, million km2. 2010-2013 .................................................................................................................................... 87 Figure 28. Structure of MAB stock by age, floors, and construction material .................................... 88 Figure 29. The number and area of public buildings in Armenia, 2013 ........................................... 104 Figure 30. Energy Intensity of Gross Agricultural Output, 2010-2012 ............................................. 111 Figure 31. Dynamics of energy consumption in agricultural sector (energy use for 2010-2012 from EC- LEDS Energy Balance, for 2014 – authors’
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