What are the objectives of the programme?

What are the objectives of the programme?

Energy intensity in Armenia is around three times higher than in the European Union (EU). This means that on average, Armenian companies use three times as much energy to produce the same output as companies in the EU.

The German Development Bank (KfW) has recognised the increasing importance of energy efficiency and the key role it will play in the future of Europe. In 2016 a concessional loan under the umbrella of the German-Armenian Financial Cooperation was launched in order to support energy efficiency investments in Armenian enterprises through the “GAF Energy Efficiency Programme for MSMEs”. The aim of this programme is not only to help MSMEs reduce their energy consumption and CO2 emissions, but also to support them in increasing their competitiveness.

GAF Energy Efficiency Programme for MSMEs


  • Sustainable introduction and roll-out of financial products for financing EE/RE measures for MSMEs in Armenia
  • Introduction of a systematic approach to provide access to financing for EE/RE technologies through a number of pre-screened and pre-approved PFIs
  • Building capacity for the evaluation of EE/RE projects by external stakeholders


  • Increased competition of the MSME sector through the application of EE/RE technologies
  • Investments in modern energy efficient equipment and machinery, building infrastructure and projects that use renewable sources of energy


  • Financed from a concessional loan of EUR 20m under the umbrella of the German-Armenian Financial Cooperation
  • Implemented in cooperation with PFIs via the German-Armenian Fund (GAF), which is administered by the Central Bank of Armenia (CBA)
  • The long-term financing will be channelled in the form of local currency loans via PFIs to MSMEs
  • Supported by a TA programme implemented by IPC and the R2E2 Fund as a local partner