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Armenia Improving the Energy Efficiency of Municipal Heating and Hot Water Supply UNDPGEF00035799 Pr


Absence of social support schemes of heating services for poor house owners ... Private Sector (producers, suppliers, designers, service companies) ... – PowerPoint PPT presentation

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Title: Armenia Improving the Energy Efficiency of Municipal Heating and Hot Water Supply UNDPGEF00035799 Pr

Armenia Improving the Energy Efficiency of
Municipal Heating and Hot Water Supply
UNDP/GEF/00035799 Project 3 December, 2008
RA Ministry of Nature Protection
  • Aram Gabrielyan
  • Project National Coordinator
  • Ministry of Nature Protection, Republic of

Armenia Improving the Energy Efficiency in
Municipal Heating and Hot Water Supply
  • Executing Agency Ministry of Nature Protection
    of Armenia
  • Implementing Agency UN Development Programme
  • Funding Organization Global Environment Facility
  • Funding Modality Trust Fund, 2.950.000 US
  • Project Duration 4 years (2006-2010)
  • Management
  • Arrangements National Execution

The Urban Areas of Armenia Supplied with District
Heating situation before start of the project
2000 3 urban areas
1990 55 urban areas
2006 only 22 buildings
  • Complete privatized housing stock without
    traditions of ownership responsibility for common
    share property use
  • Excessive government involvement in housing
    services in past, which is reversed by complete
    withdrawal of state from sector management
  • Weak capacity of multi-apartment building
    management institutions lack of
    economic/financial knowledge and of property
    management skills
  • Absence of social support schemes of heating
    services for poor house owners
  • NO private sector investments in district heating

Main objectives of the project in the context of
sustainable development
  • Environmental objectives
  • Reduction (limitation) of GHG emissions
  • Reduction of the pressure on forests
  • Development objectives
  • Provision of affordable and high quality heat to
    the population
  • Creation of favorable legal framework and an
    environment for
  • attracting private investments
  • energy efficiency measures
  • Facilitating heat sector development, which
    responds to the current needs and market
    environment without jeopardizing the most
    effective long term development options
  • Increase responsibility of local authorities in
    provision of affordable utility services
  • Establishment of the solid base for GHG reduction
    policies in the context of the countrys
    sustainable development

UNDP/GEF Project Role
Norms, regulations and possible incentives
Norms, regulations and possible incentives
Heat supply companies
Contract for Heat Supply
Funding Agreement

Project as a Supporter (Technical Assistance,
Deal Brockering, etc.)
  • Municipalities MOUs signed with Yerevan,
    Spitak, Gyumri and Sevan city municipalities
  • Private Sector (producers, suppliers, designers,
    service companies)
  • Public and house owner associations provision
    of information through established Advisory
  • Beneficiaries
  • Residents of the multi-apartment buildings

Justification of benefits of application of
cogeneration technologies
  • Cogeneration application in DH contributes to
  • Generation of highly liquidity and profitable
    product - electricity
  • Reduction of investment risks resulting in
    attractive environment for investments
  • Provision of affordable heat to the population
    (addressing the issue of non-payment cases for
    heat services)
  • Potential for application of Kyoto Protocols CDM

GEF/UNDP Project Assistance in imrpovement of the
  • Assistance in justification and drafting of
    Government Decision 509-N, 13.04.2006
  • Methodology for the tariff calculation of heat
    and power generated CHP plant based on useful
    heat demand
  • Setting the promotional energy tariff
  • 100 guarantees for purchase of all generated
    electricity by the grid
  • Government Decision (August 2006) on transfer of
    heat supply system assets to the newly
    established heat supply companies on gratis use
    and without time limit (Public Private

Other legal initiatives promoted
  • The concept of the Law on Heat Supply has been
    developed and submitted to the Government for
  • Assistance provided to the Ministry of Urban
    Development in adoption of state standards for
    improvement of the energy efficiency performance
    of buildings and heat supply systems
  • Thermal protection of buildings
  • Thermal insulation of pipelines and equipment
  • Heat networks
  • Pre-feasibility study conducted on the gas
    appliances market in Armenia and justification on
    applicability of introduction of gas equipment
    labeling system for joint activities.

Support to heat supply service companies
  • Trainings for designers, constructors and ESCOs
  • Testing the efficiency performance of gas boilers
    for establishing the testing and tuning service
  • Identification of the sites for introduction of
    solar water heaters in operating boilers
  • Assitance provided for organisation of the Energy
    Efficiency and Renewable Energy Conference in
    Armenia and heat equipment exhibition.

Support to the energy service providers
  • A software for calculation of centralized heat
    supply small systems has been developed and
    training for users was organised.
  • Introduction of new technologies, materials,
    metering and regulative devices was organised in
    coopertaion with following comapnies
    Caterpiller (USA), GE Jenbacher (USA,
    Austria), Danfoss (Denmark) and Aquaterm
    (Germany), MZTA (Russia).
  • Monitoring the energy efficiency performance of
    operating boilers and promoting the adjustment
    service provision.

Project Mid-Term Results
  • Legal and regulatory policy framework improved
    for rehabilitation of DH systems and application
    for private investments (new market niche)
  • USD 10 million direct foreign investments
    leveraged into new DH system
  • Reconstruction of the Avan district of Yerevan in
    total 213 buildings (30.000 residents)
  • System is based on new combined heat and power
    facility reconstructed network and apartment
    level metered and regulated system
  • New energy effiecient approaches are promoted in
    the reconstructed systems co-generation,
    apartment level metering and regulation, use of
    new technologies and materials in building heat
  • The new private investors has expressed interest
    and started DH reconstruction project in the
    Sevan city
  • 400 new contracts siged between customers and
    heat supply companies in the demo/pilot areas.

Project bi-lingual website
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