OREANDA-NEWS. May 24, 2011. IFC, a member of the World Bank Group, and the Ministry of Energy and Natural Resources of Armenia signed a cooperation agreement today to increase the efficiency of Armenia’s energy system by introducing new renewable energy sources.

The Armenian government’s forward-looking energy strategy has led to a significant increase in the number of small hydropower plants and renewable energy generators in Armenia. However, there is a need to ensure the reliability and secure operations of the national power grid. IFC Armenia Sustainable Energy Finance Project will help Armenia develop reliability indicators based on the best international practices and adapted to the domestic power system. Reliability indicators will set basic technical normative requirements to securely operate the power system in standard and emergency situations.

“IFC is helping the Ministry develop reliability indicators that will not only significantly enhance the security of the power system, but also better integrate new renewable energy capacities into the overall system,” said Tigran Parvanyan, IFC Armenia Sustainable Energy Finance Project Manager.

IFC Armenia Sustainable Energy Finance Project is designed to establish a sustainable market for energy efficiency and renewable energy investments and contribute to the energy self-sufficiency of Armenia. The project, launched in January 2010, is implemented with financial support from the Austrian Ministry of Finance. It is part of a broader IFC initiative in Europe and Central Asia to help companies and governments become more resource efficient and stimulate investment into renewable energy.

Since Armenia became a member of IFC in 1995, IFC has invested USD 110 million in 24 projects across industries, including financial markets, general manufacturing, and mining. IFC Advisory Services provide advice through projects focusing on the financial sector, sustainable energy, and investment climate regulatory simplification.