Press Releases

Armenian Businesses Could Cut Energy Costs by Nearly 15 Percent, Finds IFC Report

In Moscow:
Nezhdana Bukova
Phone: +7 495 411 7555

In Yerevan:

Narine Hayrapetyan

Phone: +37410 545242

In Tbilisi:

Tamar Barbakadze

Phone: +995 32 92 3523


Yerevan, Armenia, September 9, 2009—A new report from IFC, a member of the World Bank Group, finds that Armenian businesses could save nearly 15 percent on energy costs by making energy-efficiency improvements, increasing competitiveness for companies that undertake such improvements, and strengthening Armenia’s energy security.

By taking advantage of its energy-efficiency potential Armenia can further decrease the energy intensity of its economy, and increase industrial competitiveness, according to the report Energy Efficiency: A New Resource for Sustainable Growth.

The report, based on a survey of 100 local companies, finds that Armenia’s industrial sector, which comprises 24 percent of the country’s gross domestic product, underestimates the potential energy and monetary savings related to energy efficiency on average by more than 70 percent. It suggests that the industry could achieve important reductions in energy costs and total operational costs through improved energy efficiency.

“Armenian companies have made good progress in modernizing their manufacturing equipment, but there is unrealized potential for further improvements,” said Bryanne Tait, who oversees environmental and social sustainability for IFC Advisory Services in Europe and Central Asia. “The companies surveyed plan to increase investments in energy efficiency seven-fold by 2011, which represents a significant market opportunity for financial institutions.”

The Energy Efficiency report is designed to provide state officials, businesses, financial institutions, and other interested parties with an assessment of existing energy efficiency practices in Armenia, evaluate the barriers and opportunities to further improving energy efficiency in the industrial sector, and it makes recommendations for tapping that potential for improvement. Recommendations include increasing awareness about energy efficiency among businesses, developing energy consumption monitoring and management measures, and understanding the benefits of energy-efficiency financing. The report is based on a study conducted by IFC in 2008. It is available online at

Armenia became a member and shareholder of IFC in1995, and IFC began investing in the country in 2000. As of June 2009, IFC had invested $52 million to support local financial institutions, small retailers, and the hotel industry, among others. IFC also has implemented advisory projects to help improve the business environment and strengthen the financial sector.

IFC’s donor partner for Armenia’s energy-efficiency survey project is the Federal Ministry of Finance of Austria.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit