YEREVAN. – Applications from Armenia have already filled up 20 million euro quota for municipal energy efficiency under the E5P program, director of the program, Mr Anders Lund, told Armenian News – NEWS.am.
Mr Lund, who is the director of the EBRD- managed multi-donor fund, Eastern Europe Energy Efficiency and Environment Partnership (E5P), said that those projects include solid waste management in Yerevan and Kotayk provinces, to the north of the capital city, as well as waste treatment plant in Yerevan
Grants are designed as supplements to larger financing projects and need to be twinned with loans. So far, the E5P has been working with the international financial institutions rather than commercial banks, because of higher repayment risks.
“But I think that once we have successfully implemented our first projects, maybe commercial banks will take notice of them and reduce their risk assessment and interest rates for energy efficiency loans,” he said.
Asked whether energy efficiency projects could run better in the countries with higher environmental penalties, Mr Lund said that the motivation is tied mainly to energy bills.
“It’s important for any country to increase its energy security. In this regard, in Armenia you have a substantial agrosector that can be used for renewable energy,” he added.
On October 10, the E5P has approved the first project for Armenia – 1.9 million grant to improve street lighting system in Yerevan. These funds will go with the 3.7 mln euro loan by the EBRD, approved in May. Some other projects are in the early stages of consideration, including those mentioned above.
Joining the E5P in 2015 and paying a quota of 1 million euro, Armenia became eligible for a 20-million euro window before 2019. Funding will then be renewed.