About GAF

The German-Armenian Fund was established in 1998 by the Central Bank of Armenia (CBA) with the aim of providing support to the financial sector of Armenia by channeling funds from external and internal sources to the development of defined sectors of the economy.

The overall objective of the Programme for the Promotion of Renewable Energies is to contribute to an improved energy supply and to further development of the private sector in Armenia by cost-effective utilization of renewable energy sources for electricity production. The Programme envisages promoting the utilization of renewable energy by enhancing the access to loans for private investors and private enterprises.

On 24 November 2004, a €6 million loan agreement on "Development of Renewable Energies (Phase I)" was concluded between the KfW Bank and the Central Bank of Armenia.

Taking into account the successful course of the first phase of the Programme, on 3 May 2010, a new loan agreement was concluded between the Central Bank of Armenia and the KfW bank on disbursing a loan of €18 million within the framework of the "Development of Renewable Energies (Phase II)" loan program. After almost 4 years of successful cooperation of all participating areas Phase II of the Programme was finalized.

Positive experience and the successful work executed under the first and second phases of the Programme led to the establishment of a new loan agreement. As a result, within the framework of the “Development of Renewable Energies (Phase III)” the Central Bank of Armenia and KFW has agreed on disbursing loans of a total of €40 million for financing construction and rehabilitation of small-scale hydropower plants and PV power plants with an installed capacity of up to 1 MW. The third phase of the Program was successfully completed in 2019.

We are pleased to announce that CBA and KfW have entered into a new agreement aiming at further contribution to promote Renewable Energies in Armenia by enhancing access to loans for private investors investing in Renewable Energies through the “Promotion of Renewable Energies - Phase IV (GAF-RE IV)” Programme, launched in May 2021. A loan of EUR 20 million has been provided to CBA to support financeable renewable energy technologies such as PV Solar Power Plants and Solar Thermal Heating (STH). The funds are to be used to provide refinancing of credits to Armenian partner banks for the promotion of Renewable Energies (RE).