Improving building energy efficiency is central to the strategic development of the Republic of Armenia (“Armenia”). As Armenia’s largest energy-consuming sector, buildings account for nearly 40% of the country’s total electricity demand and more than 25% of its gas demand. Estimated energy-saving potential ranges from 40% to 60% across residential, public and commercial buildings, depending on interventions. This level of savings could translate into significantly lower household energy bills, greater energy security, improved thermal comfort in homes, offices and schools, and many other benefits.
The residential subsector especially holds significant energy-saving potential. Along with transport, the residential subsector consistently accounts for the highest share of Armenia’s total final energy consumption (TFC), and this amount is projected to rise by up to 40% above the 2018 level by 2036 (see Figure 1). For public sector buildings, exemplar or “lighthouse” projects that build on past success and demonstrate leadership could stimulate the domestic high-efficiency building products and services market, with both local and international lenders providing project financing.
Armenia could also address the energy consumption of specific building technologies (e.g. for lighting, heating and, increasingly, cooling). Not only would heating and cooling technology improvements raise energy efficiency considerably, they would increase warmth, comfort and indoor air quality to improve household health and wellbeing.