In May 14, 2007 USAID awarded the contract to Advanced Engineering Associates International, Inc. (AEAI) for the implementation of the Commercialization of Energy Efficiency Program (CEEP) in Armenia. The CEEP project seeks to address the problems that hinder faster development of demand for energy efficiency services and products. It also seeks to expand the use of energy efficiency technologies and methodologies in Armenia which result in better energy security through the reduction of fuel imports from supplier countries and in savings to consumers by reducing their energy costs.

Key project objectives are:
to increase the use of clean, safe and affordable energy efficient technologies by residential, commercial, industrial and municipal energy consumers;
to increase private sector lending for energy efficiency projects (EEPs);
to conduct a limited number of socially-oriented EEPs; and
to prepare the sector for expected energy price increases.

To eliminate or reduce barriers such as limited access to financing, and to promote the implementation of energy efficiency measures in Armenia, CEEP will engage in the following general activities:
Training ESCO’s in structuring and securing financing for EEPs;
Training and educating local financial institutions in the assessment of EEPs;
Working with local consumer organizations to provide extensive outreach and education to consumers about the economic advantages and disadvantages of energy efficiency services and equipment, as well as health, safety and environmental issues;
Promoting the development of heat sector businesses, such as service and equipment providers, distributors and representatives; and Promoting, where possible, the domestic production of heating equipment and parts to reduce reliance on more expensive, imported products, thereby increasing the establishment and capacity of local manufacturers and thus creating more options for consumers.

AEAI believes that the focus on the commercialization of the energy efficiency sector through analysis of targeted market segments and the use of innovative project finance mechanisms will result in exponential growth in investment in energy efficient technologies in Armenia.  Implementation of socially-oriented pilot projects will provide a double benefit: such projects not only allow the use of technical and financial solutions with a focus on commercialization but will also contribute positively in the area of consumer awareness of the benefits of using energy efficiency technologies and methodologies.