Donor: WB

Client: Renewable Energy and Energy Efficiency Fund

Value: USD 155,500

Country: Armenia

Project start: January 2015

Project end: June 2016

Associate Consultants: N/A


The overall objective of the current Project is to develop a business plan for the continued operation of the R2E2 Fund to allow sustained and scaled-up investments in Energy Efficiency.

Within the scope of the project the Consultant undertook the following activities:

  • Task 1. Review the R2E2 Fund’s current business and financing model, Energy Service Agreement (ESA) format, results and barriers faced to date, and existing capabilities. Efforts will be made to build up on the existing business model and expertise developed during the ongoing GEF Energy Efficiency Project
  • Task 2. Conduct a first order market assessment of existing (public sector) and potential new market segments to assess EE and investment absorption potential, borrowing capabilities, existing EE financing programs and their target markets to determine segments currently underserved.
  • Task 3. Based on the agreed target market segments, the Consultant will then propose specific changes that the Fund would need to make in order to adequately serve the identified markets. This will include changes to the current financing scheme, sources of financing, changes to the ESA and pricing model, additional capacity/staffing enhancements and changes, etc. needed to adequately develop this new line of business. Thereafter, the Consultant will prepare an indicative investment plan for the Fund for the next 5-7 years, develop a sustainable fee structure, potential sources of financing, draft a modified ESA, staffing, and other aspects as appropriate.
  • Task 4. The Consultant will also identify key constraints and barriers to realizing this business. This will include policy, institutional, financing, market and technical constraints that may need to be addressed to allow this business to succeed. The Consultant will also develop recommended policy and other actions that the Government, Fund and others would need to take to adequately address them.