The World Bank, together with the Global Environment Facility (GEF) and the European Bank for Reconstruction and Development (EBRD), are supporting Armenia's growing renewable energy power sector, with small-hydropower plants benefiting from national policies that promote the supply of locally produced energy to the national grid.
19 July 2011: The World Bank is supporting Armenia in diversifying its energy matrix towards renewable sources, providing financing for small hydropower projects that also benefit from national incentives to supply renewable energy to the national grid.
Armenia’s energy law mandates that the power distribution grid buy electricity generated by small hydro power stations for 15 years after they become operational, at a specified feed-in tariff. The World Bank provided a US$5 million dollar credit to ensure investments in the sector, co-financed by a US$7 million European Bank for Reconstruction and Development (EBRD) loan and US$3 million by the Global Environment Facility (GEF). Out of 90 small hydropower stations operational in Armenia (which provide about 3% of Armenia’s domestic demand for electricity), 27 were built under the World Bank’s Renewable Energy Project. [World Bank Press Release]