Activities of the R2E2 Fund under the L C b D l t Low Carbon

ARMENIA RENEWABLE RESOURCES AND ENERGY
EFFICIENCY FUND
Activities of the R2E2 Fund under the
L
Low
C b Development
Carbon
D
l
t
TA M A R A B A B AYA N
May 23, 2014
R2E2 FUND
Established in 2005 by GOA following the y
g
Law on Energy Efficiency and Renewable Energy gy
Mission – facilitate investments in EE&RE area
Objective – create financing mechanism for EE&RE
for EE&RE
Portfolio of implemented projects >$40mln.
$40 l
2
R2E2 FUND - organizational
g
structure
Board of Trustees
Projects
Director
Administration
Financial
Procurement
Legal
Engineering
3
ACTIVITIES
•Policy development support (RE Roadmap, RE
I
Investment
Pl
Plan, NEEAP)
•Legal regulatory improvement proposals aimed to
market development
•Support to new production and services busting
EE&RE sector
•Training and capacity building activities for ESCOs
and other institutions
•Public awareness activities
•Project Management Services in Energy Sector
•Revolving
Revolving funding mechanism (through banks)
•Direct lending activities for pilot projects
•Surveys
y and studies to facilitate investments in RE
and EE fields
4
FUNDING SOURCES
• Revolving fund, formed after completion of WB financed
UHP and REP on-lending components
•Provided
P id d b
by the
h MoF
M F under
d Agency
A
C
Contract
•$10,5 mln.
•To
T be
b repaid
id to
t the
th MoF
M F by
b 2045
•Multiple allocations
•Allocation level 83%
•Margin of interest is set us a fee to cover operational
expenses of the Fund
•Grants from IFIs, e.g. WB/GEF through MoF
•Direct grants (WB/GEF; WB/CIFs; EU/BSBEEP)
•Advisory services to local firms (customized trainings)
•Consultants services (EBRD; USAID sub-consultant)
•Specific
S
ifi projects
j t financed
fi
d by
b d
donors
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ENERGY EFFICIENCY PROJECT
•Objective
Obj i – Reduce
R d
energy consumption
i
in public buildings
•WB/GEF Grant - $1,8mln.
GOA - $8mln.
$8mln
•GOA
•Beneficiaries – public and municipal
agencies
i
•Typical ESMs – Insulation of walls and
roofs, replacement windows, replace street
lighting system
6
Public Buildings in Armenia
• Public Agencies – financed from the state or community budgets (hospitals, schools, kindergartens, administrative g ( p
,
,
g
,
buildings, street lighting, etc) • Budget constraints coupled with rising energy costs
•
gas prices increased ~170% from 2008 to 2014; electricity also increased 35% (daytime), 41% (nighttime)
• Buildings are under –
g
occupied, financing is per person p ,
g p p
(student, patient, etc.) • survey results show average comfort levels in social buildings ~40%
• energy costs are generally second highest cost (5‐20% of total costs) for public buildings
• State of public buildings is poor and many need rehabilitation without prospects for cost recovery • Typical consumption – heating, cooking, hot water, electricity
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ENERGY EFFICIENCY PROJECT STEPS
1. Application by the Beneficiary
2. Performing
g energy
gy audit byy the R2E2 Fund,, agree
g the
results with the Beneficiary
3. Conducting design and civil works tenders by the R2E2
Fund
4. Signing a Loan Agreement or Energy Service Agreement
b
between
the
h R2E2 Fundd andd the
h Beneficiary
fi i
with
i h annexedd
contract awarded as a result of the tender;
5 Implementing
5.
I l
ti design
d i andd civil
i il works,
k commissioning
i i i andd
delivery of outputs to the Beneficiary;
6 Jointly operate the system within a year;
6.
7. Monitor energy consumption and payments by the
Beneficiary
EEP - CRITERIA
•Comfort level > 50%
f l l
Estimated energy savings > 20%
energy savings > 20%
•Estimated
•NPV >0
•Simple payback < 10 years
•Investment > $ 50 000
•Investment > $ 50,000 GEOGRAPHY OF THE EEP
Hospital
University
School
Kindergarten
Administrative State Archive
Administrative –State Archive
Municipal lighting
Statistics on EEP in Schools
2
• Number of Schools: 6 / 19823 m
/
• Total investments: AMD 137 mln./
• From AMD 19 mln. to AMD 29 mln., average AMD 22.8 mln./m2
• From 5300 to 9000 AMD/m/մ
F
5300 9000 AMD/ /մ2, average 7200 AMD/m
7200 AMD/ 2
 Simple payback: 7.1…7.2 years
 Energy saving: 52.3... 58.0%:
• Heating (kWh/year)
• Before ESM‐ 2,286,767 ► after – 1,053,737 (‐53.9%)
• Heating (kWh/m
(k h/ 2/year) /
)
• Before ESM ‐ 120 ► after ‐ 55 emissions reduction
• CO2 emissions reduction • Before ESM ‐ 471.8 t/year ► after ‐ 218.2 t/year (‐53.7%)
Typical
yp
ESMs for Schools
Energy efficciency
Energy Efficiency
Investmentts AMD/m
mմ2
EE Investments p
per heated area
Gas co
onsumptio
on, 1000 m
m3
Annual Energy Consumption for Heating
Heating –– kWh/m2
Energy for Heating per Area
Vayk 3 kindergarten
Annual expenses for heating
TB1
Slide 17
TB1
Tamara; 11.05.2014
Vayk 3 kindergarten
Annual expenses for heating
Masis Hospital
Expenses for Heating
National Archive of Armenia
Expenses for Heating
Emergency level of building

The building I not considered if emergency level is III or IV

If the initial screening approves the project, then require technical expertize
of emergenc
emergency level
le el
Condition of roof
Boilers in ASUE
Before After
Entrance to ASUE Building
Before After
Lchashen village school
Northern side
Sunny side
Scaling up Renewable Energy Program in Armenia
Climate Investment Fund
Climate
Investment Fund
SREP
Feasible Potential of Renewable Resources in Armenia
Hydro
Resources
250300MW
Wind
resources
100300MW
Solar
S
l
resourc
e
>1000MW
TAMARA BABAYAN
Director of R2E2 Fund
Geothermal resources
25‐150 MW
Renewable Energy
gy Resource Potential
Technology
Capacity (MW)
Generation (GWh/yr)
Wind
Utility scale solar PV
300 300
830 – 1,200a
650
1,700 – 2,100a
Concentrating solar g
power (CSP)
Distributed solar PV
Geothermal powerb
Landfill gas
Small hydropower
Small hydropower
Biogas
Biomass
Total (electricity)c
Solar thermal hot water
Geothermal heat pumps
Total (heat)
1,200
1,300
at least 150
2
100
5
30
3,800 –4,300
n/a
n/a
2,400
1,800
at least 1,100
20
340
30
230
7,400 – 8,700
260
4,430
4,690
Renewable Energy Resources
Supply Curve
Current Situation
Generating units
Number of plants
Capacity, MW
Annual Production, GWh
SHPP
151
265
776
d
Wind
1
2,64
,6
5,0
Biomass
1
0,835
5,9
Solar PV
1
0,01
0,015
154
268,5
881.9
Total
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Policy
y Incentives
• Guaranteed purchase of produced electricity within 15 years after commissioning /production license/ f
i i i / d i li
/
• Fixed tariff
•
•
•
•
•
SHPP /natural flow/ ‐21,061 AMD/kWh ‐ $0.05
SHPP /irrigation/ ‐ 14,039 AMD/kWh ‐$0.034
SHPP /drinking water/ ‐ 9.361 /kWh ‐$0.023
Wind – 37,007 AMD/kWh – $0.09
Biomass – 40,338 AMD/kWh ‐$0.1
• End user tariff /population/‐
End user tariff /population/ 38 AMD/kWh (day)‐$0.1; 38 AMD/kWh (day) $0 1;
28AMD/kWh night ‐ $0.07
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SREP Investment Plan
• Geothermal – $10 mln for resource confirmation • Solar PV – $
$30 mln for 40 MW projects
p j
In addition For solar PV
• ADB ‐ $20 mln.
$
• WB ‐ $10 mln.
• Commercial banks ‐ $ 30 mln.
$
• Private sector ‐ $ 30 mln.
For geothermal ‐
g
$95 mln. mixed $
Forests10%
Gas 0%
Gas-0%
Oil-0%
%
Coal-0%
Thank you for attention
Tamara Babayan
Director
Armenia R2E2 Fund Phone: 374 10 588011
Mobile: 374 93 930030
Email: director@r2e2.am
www.r2e2.am
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