Finanzgruppe Sparkassenstiftung


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Financing of renewable energies

Local partner banks, Project Management Unit (PMU) at the Central Bank of Armenia
Origin of funding
KfW Banking Group
Dates (start/end)

2006 - 2010
1 international long-term expert, 1 local specialist, 3 short-term experts


Project description

Armenia’s energy supply is mainly dependent on Russian natural gas or oil and one nuclear power plant. In order to get away from these dependencies and to reduce the economic and ecological costs of energy in the medium run, stronger emphasis is put on renewable energies. To achieve this goal, Armenia’s efforts concentrate on the existing small hydro power plants (SHPP), which are to be rehabilitated in the course of the project, leading to an enhanced efficiency.

This project was financed with the help of local banks, which were not only lacking long-term refinancing means, but also the sufficient know-how for the evaluation of infrastructure projects. The first gap was closed by KfW, which provided the Armenian banks with adequate refinancing means. Sparkassenstiftung supported KfW in selecting suitable banks and guided the chosen banks in their process of granting loans. In close cooperation with a “Technical Consultant”, appropriate projects were identified, analysed and financed. The knowledge imparted to the banks along the way can be generally used for the financing of larger projects.

As it was made successful use of the initially provided financial means and considering the fact that there is still sufficient need for support, a second project phase is foreseen.


Services provided

  • Selection and monitoring of partner banks
  • Consulting of selected partner banks focussing on large-scale / long-term loans (small hydro power plants – SHPP)
  • Support to necessary changes in the processes / organisation of the loan department with regard to these loans
  • Training and seminar courses (off and on the job) for bank staff
  • Selection and analysis of potentially suitable projects