Promotion of Renewable Energies by KfW
The Promotion of Renewable Energies (GAF-RE) Loan Program has supported the development of renewable energy financing in Armenia since 2004. The Program initially focused on small hydropower and subsequently expanded to solar, wind, geothermal and biomass technologies, with solar photovoltaic investments becoming a major focus.
Phase I was launched in 2004 with EUR 6 million. Phase II followed in 2010 with EUR 18 million, and Phase III in 2012 with EUR 40 million. Since inception, 54 small hydropower projects with loans totaling AMD 30.14 billion (EUR 67.3 million) and 142.2 MW of installed capacity have been refinanced. Under Phase III, 5,521 solar thermal and small-scale PV projects totaling AMD 5.8 billion (EUR 12.9 million) were refinanced, together with nine licensed PV plants of up to 1 MW, totaling 8.5 MW of capacity.
Phase IV was signed in 2019 with EUR 20 million and broadened the scope, with a focus on PV plants of up to 5 MW. Phase V, signed in 2021 with EUR 40 million, was fully dedicated to large-scale PV plants of up to 5 MW. By the end of 2025, 24 such projects totaling AMD 27.3 billion (EUR 60.6 million) had been refinanced, creating more than 130 MW of capacity.
Phase VI was signed in 2023 with EUR 12 million to finance small-scale PV investments for own consumption by SMEs and households. By the end of 2025, 6,808 loans totaling more than AMD 19.3 billion (EUR 43.0 million) had been financed under this phase.
The next phase VII combines renewable energy and energy efficiency financing. A EUR 26 million agreement signed in December 2024. By the end of 2025, 244 loans totaling more than AMD 550 million (EUR 1.4 million) had been financed under this stage, with more than 80% of funds directed to small-scale PV construction. A further EUR 40 million agreement for Promotion of Renewable Energies and Energy Efficiency was signed in September 2025. The funds will be available for the partner financial institutions in August 2026.
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Access to the Program |
More detail on the Program available at re.gaf.am
Partner financial institutions
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