EBRD lends support to Electric Networks of Armenia

The European Bank for Reconstruction and Development (EBRD) is providing a loan of $70m, including a B-loan from the Netherlands Development Finance Company (FMO), to Electric Networks of Armenia (ENA), the country's sole electricity distribution company and longstanding client of the Bank.

The funding will support the large-scale modernisation of the power distribution network in Armenia.

The Asian Development Bank (ADB) is co-financing this project with a US$ 35 million loan. The loan aims to strengthen ENA's distribution infrastructure, with a focus on the regions as well as the country's two largest cities, Yerevan and Gyumri, both of which are part of the EBRD Green Cities programme.

ENA will address specific environmental priorities identified in the Cities' Green City Action Plans (GCAPs), such as the reduction of greenhouse gas (GHG) emissions and the integration of renewables into the power system.

The financing will support Armenia's digital transition through the large-scale implementation of automatic control and smart metering systems, enhancing the power network's reliability and flexibility and significantly improving systems performance. The digital economy is one of the pillars of the EBRD's Strategic and Capital Framework.

The project is expected to improve energy efficiency, reduce technical and commercial losses and GHG emissions and remove technical barriers to the installation of small and medium-sized renewable projects (especially solar and wind), thus improving the overall reliability of the country's power supply and helping both Yerevan and Gyumri to meet their climate goals.