RE targets:
According to the main results of the Armenian RE Roadmap project, the contribution of the renewable electricity in Armenia can increase by fivefold in 2020 in comparison to the present energy production from RE. In 2010 RE based generated was 310 GWh, and it is forecasted to generate 740 GWh in 2015, and 1500 GWh in 2020. It is important to emphasise that the achievement of targets is much more dependent on politically implemented measures than on technical capabilities.
RE action plans:
Table 4. Intervention Summary:
1. Streamlining procedures for issuance of permits.
2. Develop a road map to obtaining permits.
3. Set up shorter deadlines for administrative decisions.
4. Establish a fast track procedure for smaller projects to significantly reduce transaction costs.
5. Establish a fast track procedure for land use category change.
6. Extend water permits to 15 years to significantly reduce project risk.
7. Move issue time of electricity sales agreement to time of development permit by including provisions of construction period limit and anticipated electricity generation to provide the utility company opportunity to plan the future demand and compensation in case of project cancelation or major delays.
8. The possibility for opening for purchasing licenses already given might have a positive impact on the collateral issues for financing projects.
9. Establish a time limit or a sunset clause for land lease for a site that is suitable for SHPP development to prevent speculative activities. This means if leaser does not start process of developing SHPP after a specified time, then the lease will be voided.
10. Experience show that the main reason for the wide spread use of biofuel has been government established mandates. It is recommended that government institute a 10% mandatory blend of bioethanol in gasoline.
11. Agree on a minor change in the law to exempt harvesting mature trees in these plantations from restrictions that apply to cutting mature trees in forests and green belts.
12. Modify the VAT law to address the entire power generation train with its control components instead of just listing turbines.
13. To improve the cash flow, VAT could be paid back over a number of years, based on the percentage of the electricity sold starting from fourth year of the electricity generation.
14. A tax holiday for particularly the large-scale wind farms could be an effective way of boosting project feasibility to foreign investors at a relatively low cost.
15. Eliminate import duties on solar thermal and heat pumps.
16. Eliminate customs duties on electrical cars.
Biofuels obligation/mandate:
It is recommended that government institute a 10% mandatory blend of bioethanol in gasoline.
RE public awareness/promotional programmes:
Awareness raising and capacity building are ongoing efforts, needed to implement the adobe recommendations as well as to facilitate a proper impact of the interventions. Incorporating awareness raising and capacity building into each of the interventions is thus necessary.