AEAI Took Part in a Workshop on Urban Heating in Europe and Eurasia

April 9, 2007. From March 27-28, 2007 representatives of AEAI Armenia were in Kyiv, Ukraine to participate in the policy workshop on Urban Heating Reform. The workshop aimed at sharing experiences and discussions over the perspectives of residential heating sector in cities of the European and Eurasian countries. The two-day event was organized by the US-based Alliance to Save Energy organization in cooperation with USAID. The workshop brought together governmental officials, policymakers, bankers and investors, heat enterprise managers, experts and donor organizations from different countries.

Yerevan Physics Institute: Expanding the Heat Supply Service

April 4, 2007. Last week another energy efficiency demonstration project was launched by the EE, DSM and RE Program. This activity is short-term and comprises expansion of the local heating system installed at Yerevan Physics Institute in the year 2005. As a result of this project, the 1000 kW gas boiler will operate at its full capacity supplying heat not only to the main but also to the administrative building of the institution. The internal heating network of the administrative building will be renovated and the external heat line will be laid to connect the building to the boiler house. The decrepit wooden windows and external doors at all the three floors will be properly weatherized.

The pilot project budget has been co-shared by USAID and Yerevan Physics Institute making 69% and 31% respectively.

New Energy Efficiency Projects Launched

March 19, 2007. Three new energy efficiency pilot projects have just been started under the USAID-funded EE, DSM and RE Program. The projects are implemented by local ESCOs in Yerevan and Vayots Dzor marz and it is planned to complete them by the end of April 2007.

Two projects, one at the State Service of Hydro-Meteorology and Monitoring of Armenia (SSHMM) and the other at the Yerevan Polyclinic #13, include switching from the costly heating by electricity to the more affordable and safer local heating system run on natural gas. Energy efficiency measures at SSHMM involve the weatherization of old wooden windows and outside doors as well. The solar water heating system will be installed at a private milk processing enterprise located in Vernashen village, Vayots Dzor marz which will substitute the extensively used hot water heating by electricity for production needs.

The pilot projects are co-funded by USAID with the cost share by beneficiaries making 30% for SSHMM and polyclinic and 55% for the milk processing enterprise.

Last year, 5 pilot projects and 9 measurement and verification projects were carried out in the framework of the EE, DSM and RE Program in Armenia. The projects included the application of modern energy efficiency and conservation technologies as well as the assessment and analyses of the actual energy, cost saving and emission reduction effects they have had being applied at various sites around Armenia.

Celebration of Completion of the Energy Efficiency Project in Armenian Fire Stations

February 28, 2007. Yesterday, on February 27 USAID and AEAI officially celebrated the completion of the pilot project on installation of combat compact units and gas room heaters in the Armenian fire stations. The event took place at the fire station #12 located in Avan district of Yerevan. The ceremony was attended by US Charge d'Affaires Anthony F. Godfrey, USAID representatives, Director of the State Rescue Service of Armenia General-Mayor Eduard Barseghyan, Deputy Director Aram Tananyan and other honorary guests.

Paying tributes to the hard but vital work of firefighters, U.S. Charge d'Affaires noted that due to this project it became possible to improve the working conditions of the Armenian rescue teams in winter. In his turn, General-Mayor Eduard Barseghyan extended his appreciation on behalf of the State Rescue Service for the efficient partnership with U.S. Government.

The crews of rescuers and firefighters lined up in uniform to salute the guests added up to the overall festive mood of the event.

Learn more about this energy efficiency pilot project on Our Bulletins page of the website.

The Armenian Fire Stations: Warmth Ensures Operational Readiness

January 30, 2007. The USAID-funded pilot project on installing energy efficiency gas heaters in the Armenian fire stations has recently been completed. All the 47 planned sites have been equipped with the necessary equipment which is now fully operational. This means that warmth is kept in shift rooms of the fire stations and fire engineering does not freeze in garages any longer. Weatherization works have been made at the project sites as well - the metallic gates of the garages have been insulated with glass cotton in order to keep the drafts of cold air out.

The timeliness of this project is ever evident as the winter season of 2006-2007 has proved to be especially frosty and snowy. Having taken around nine months, the pilot project has become a good example of cooperation between two experienced local ESCOs which were assigned to implement this Armenia-wide initiative.

New Documentary Film Released

November 17. As part of the USAID-funded EE, DSM and RE Program, Advanced Engineering Associates International has prepared the new documentary film intended for public demonstration. The film is titled The Formula of Saving and presents an overview of our energy efficiency pilot projects implemented in Armenia within the years 2004-2006. It has been made in cooperation with Altera production studio and is available in Armenian and English languages. Shortly, the film will be aired on the national television.

The Armenian ESCO Association: Study Tour to Czech Republic

October 6, 2006. From September 25 through October 5, 2006, the members of the Armenian ESCO Association together with AEAI representatives have visited Prague, Czech Republic to participate in the international ESCO Conference and the Experience Exchange Program. The events were organized jointly by the USAID-funded EE, DSM and RE Program and Academy for Educational Development (AED).

The conference took place on September 25-27 and gathered ESCOs from different European countries. The event aimed to identify and introduce the recent developments in the energy service industry as well as to discuss the opportunities for its further promotion in Europe. The conference has provided a broad forum for in-depth sessions, interactive panels and presentations.

Also, the Armenian ESCOs took part in the four-day extensive training program. The goal of the program was to share local experience with the representatives of the Armenian ESCO Association on the best practices in operating the ESCO Association. The participants have observed modern technologies and equipment utilized by Czech ESCOs for energy and heat delivery, energy efficiency and renewable energy sources. Several topics were discussed including the innovative methods and approaches in the field of energy service provision, advocacy and lobbying, organizational development, relationship with various government institutions and fundraising. A number of site visits were made to the most successful projects implemented by various Czech ESCOs.

Useful in terms of practice and knowledge, this capacity building program has also served as a good platform for ESCOs and ESCO associations for establishing new business contacts.

Measurement and Verification Projects Completed

July 24, 2006. This month, EE, DSM and RE Program completed all the 9 measurement and verification (M&V) projects at the sites of the energy efficiency pilot projects implemented within the year 2005. M&V initiatives were started in February and lasted from 4 to 6 months. Several local ESCOs were contracted to carry out monitoring, evaluation and reporting activities on M&V developments and outcomes under the overall management of the Program.

The goal of the M&V projects is to assess, analyze and make conclusions on the actual effect of a set of energy efficiency measures applied at different sites around Armenia. Based on the collected data, within the nearest days EE, DSM and RE Program engineers will summarize the findings which will be then included in the Lessons Learned Report.

The Lighting Network of Nor Nork to Be Modernized

May 16, 2006. Recently the EE, DSM and RE Program has started а new demonstration project aimed at upgrading the street lighting system of Nor Nork community of Yerevan. The project is co-funded by USAID (70%) and Yerevan Municipality (30%) and implemented by Artstrom OJSC, local ESCO.

The lighting system of our city is rather old, constructed so that no flexible and efficient maintenance is possible. There is no opportunity to provide reduced intensity street lighting when necessary - the presently used worn-out lighting control panel only allows switching the branches on and off. Duty electricians make everyday checkups of the technical state of each branch which results in sizeable maintenance costs. Usually the same holiday lighting elements are installed and removed for a dozen times every year.

To demonstrate energy and cost efficient solution to the issue, EE, DSM and RE Program will redesign the lighting networks of 19 streets in Nor Nork community. Highly efficient “Dispatcher” control system will be installed in the central control point. The system will enable to perform the following:

Light any street at any time at 1/3 or 2/3 of its entire intensity;
Keep off holiday lighting bulbs all night long;
Minimize energy consumption by 2/3 during the repairing work;
Eliminate daily check-ups;
Avoid removing holiday lighting elements.

In the future, the new control system can be expanded to all the other Yerevan streets once their lighting networks are redesigned accordingly.

Heating for the Armenian Fire Stations

May 11, 2006. End of April, a new energy efficiency project was launched in the scope of the EE, DSM and RE Program. The initiative targets 48 fire stations situated in all the regions of Armenia. Being funded by USAID and managed by AEAI, the project is implemented by 2 experienced local subcontractors, Thermoservice Ltd. and Artstrom OJSC.

Fire prevention has key importance for any society as it safeguards people's health and lives. There are around 2400 professionals at the State Fire Protection Service of Armenia working in 59 fire stations that cover the entire territory of the republic. The workload of Armenian rescuers is quite tense - on average the number of monthly fire-alarms and other emergency calls amounts to 1800.

Today, the institution has got scarce resources due to a small budget allocated by the Armenian government, the most part of which goes for personnel salaries to keep the qualified workforce. At the same time, garages, dispatching points and administrative rooms of the stations countrywide have not been repaired for a long time. Internal networks of the buildings are threadbare and each heating season both personnel and engines freeze in cold rooms. Moreover, because of extremely low inside temperature in garages over the winter season the fire equipment cracks and gets out of order. The indoor cold complicates the work of firefighters and administration comprised of daily activity and night shifts. Several cubic meters of wood provided yearly by the authorities are not enough to maintain at least above-zero temperature level which leads to freezing and, consequently, breakage of equipment. In addition, the institution is forced to consume electricity which results in over-expenditures of the budget. The State Fire Protection Service has recently undertaken the restoration of gas supply networks in 7 fire stations and there was no funding available to go further.

Due to this pilot project, highly efficient gas heaters will be provided to 48 fire stations to heat the shift rooms and garages. The metallic gates of the garages will be insulated with glass cotton in order to eliminate cold air infiltration. Pressure regulating control points will be installed at the sites and low pressure gas supply pipelines will be laid to the fire stations. Automatic gas-fired room turbo heaters with high-level safety protection will be installed in the shift rooms. To protect fire engineering from overcooling, US-manufactured energy efficient combat compact tubular unit heaters designed particularly for such areas will be mounted in garages of the stations.

Cogeneration System to Be Installed at the Armenian-American Wellness Center

April 4, 2006. One of the initiatives being currently implemented by EE, DSM and RE Program is an energy efficiency pilot project aimed at installing the combined power generation, heating and cooling system (CHP) at the Armenian-American Wellness Center. Funding for this demonstration has been fully provided by USAID. The project subcontractor is SolarEn LLC and it is expected that overall activities are accomplished by September 2006.

The Wellness Center is located in Yerevan and provides premier quality diagnostic services. It is particularly recognized for breast and cervical cancer examination available for thousands of Armenian women. For its daily operations the institution consumes significant amount of electricity for heating, cooling and ventilation of spaces. The initiated project will noticeably increase energy efficiency of power supply through the application of on-site cogeneration technology which is quite new to Armenia.

Cogeneration implies the simultaneous production of electricity and heat from a single fuel. Thus, the CHP unit operated on natural gas will generate electrical power (110 kW) and thermal power (148 kW). The unit will be equipped with an independent operation option for emergency power supply in case of the utility's grid failure. In summer, the absorption chiller will provide cooling using the heat from the CHP unit. In addition, backup batteries will be mounted to support critical loads as an emergency power supply. There will be also a monitoring system in place which will enable to oversee and control the CHP unit performance online.

Measurement and Verification of the Pilot Projects Underway

March 14, 2006. Starting February 2006, Armenia EE, DSM and RE Program has been managing the implementation of 9 measurement and verification (M&V) projects at the sites of the pilot projects launched and completed within the last year. The M&V projects are being carried out by the implementers –local ESCOs and the projects’duration ranges from 4 to 6 months.

The aim of these projects is to assess, analyze and make conclusions on the actual effect of energy efficiency measures through the regular measurement and control. The projects will evaluate the technologies applied at the pilot project sites in Yerevan, Tsaghkadzor, Vanadzor, Sevan and Gavar. The technologies and measures include: solar water heating for Germes Art company and Arabkir Joint Medical Center; weatherization of windows and external doors as well as mounting of high efficiency gas-fired boilers for space heating in Sevan hospital, Gavar orphanage and Physics Institute; roof insulation, replacement of windows and installation of gas-fired space and water heating system at the Rest House of Armenian Artists’Union; local heat supply systems at the Maternity Care Research Center, Vanadzor Polyclinic No. 4 and residential buildings on Sayat-Nova Ave., Yerevan.

The M&V projects will verify the energy, environmental and cost saving potential of the implemented pilot projects, evaluate the actual comfort level by the occupants throughout the heating season and also reveal any problems occurred during the operation of the new technologies.

For more accurate and effective data collection, EE, DSM and RE Program has provided the ESCOs with several items of digital energy audit equipment. Thus, hobos will help to measure the indoor temperature and relative humidity level and the gas analyzer will test the efficiency of the installed boilers. The Program introduced the ESCOs to the setup of these devices, the principles, techniques and ways of their functioning at a special training course organized in August 2005.

Two New Pilot Projects Launched in 2006

February 27, 2006. As part of the USAID-funded EE, DSM and RE Program, in February AEAI started two new pilot projects aimed to display the benefits of applying advanced energy efficient technologies. Both projects are carried out in Yerevan.

One of them involves the installation of solar water heating system at the Wrestling Olympic Youth Sports School in downtown Yerevan. The sports center is very popular among the Armenian youth and has got good traditions of recreation and sports. Around 300 young wrestlers are attending the school every day, many of them being trained to perform on the professional sports level.

A total of 16 flat plate solar collectors with all the necessary equipment will be mounted on the roof of the school to supply hot water for hygiene needs. The system will be installed with a backup electric heating facility. As a result, the consumption of costly electricity at this site will be reduced considerably. The beneficiary has shown big interest in installing the solar system and thus undertook to cover 65% of the project cost. USAID has provided the remaining 35%. The application of the solar water heating technology is quite beneficial - it will make available a self-sufficient renewable energy source which is reliable, environmentally friendly and free of charge although requires an initial investment.

The other demonstration project is currently implemented at the RA Tax Inspection located in two office buildings. For many years the office has only relied on electricity using hot plates to heat the rooms. The old heating system exploited in Soviet times and unused over the last decade was completely deteriorated. Due to the partnership with EE, DSM and RE Program, the heating system at the Tax Inspection office will be rehabilitated with having switched from the expensive and mostly hazardous electricity to the natural gas heating option. High efficiency gas-fired boilers will supply heat from the newly constructed boiler house, the internal heating network will be repaired, and 280 regulative valves mounted on the replaced radiators will allow controlling temperature in all the rooms of the office. USAID has co-sponsored the pilot project by 80% of the total budget as the initiative is categorized into heating projects in the municipal-governmental sector.

THE NEW HEATING SYSTEM LAUNCHED
AT MATERNITY CARE RESEARCH CENTER

February 21, 2006. On 15 February 2006, U.S. Ambassador to Armenia John Evans and Dr. Georgiy Okoev, Chief Medical Officer of Yerevan Maternity Care and Research Center, took part in the official ceremony of launching the new heating system at the hospital. The system was renovated in the framework of Armenia Energy Efficiency, Demand Side Management and Renewable Energy Program funded by USAID and implemented by Advanced Engineering Associates International (AEAI). The event was attended by Mrs. Donna Evans, Yerevan Mayor Yervand Zakharyan, RA Deputy Minister of Health Tatul Hakobyan, USAID Mission Deputy Director Karl Fickenscher, the project co-funder Abet Torosyan, U.S. Embassy and USAID officials, AEAI Armenia staff, Anergo Two LLC, hospital personnel and media representatives.

The institution was established in 1931 and for today it is among the largest and most advanced medical and research institutions of Armenia in the field of maternity and child care. With 70% of the project cost being provided by USAID and cost sharing by the beneficiary making 30% of the total budget, the energy efficiency project has fully rehabilitated the internal and external heating networks of the Center comprised of 2 buildings –the maternity hospital and the outpatient care center.

Under this project, AEAI has constructed the new boiler house, installed two high efficiency gas-fired boilers, renovated the pipes as well as mounted new cast iron radiators and regulative valves in the rooms. The boiler house has been equipped with backup electric heaters which will help to prevent the boilers from freezing during possible gas disconnection.

The new heating system will serve a hospital which delivers about 1,800 babies annually, performs around 800 surgeries and provides outpatient services for thousands of patients all over Armenia.

More information on the project can be found in Our Bulletins section of our web site.

VISTAA Expert Center to Conduct Consumer Survey in Energy Sector

November 25, 2005. AEAI is pleased to announce that the Consumer Survey in Energy Sector of Armenia is already started. As a result of the competitive selection process, VISTAA Expert Center has been awarded a contract on implementation of the survey.

The objective of this survey is to define the market and economic potential for energy efficiency and renewable energy technologies in each of the five energy demand sectors of Armenia’s economy - residential, municipal, commercial, industrial and agricultural. The research will last three months and cover urban and rural areas of the republic. As an outcome, the contractor will provide the survey findings along with a database for further analysis by the AEAI expert research team. The final assessment will be shaped into a package of strategic recommendations and submitted for the consideration of USAID and the RoA Government.

Official Opening of the New Heating System Held in Sevan Hospital

October 13, 2005. Yesterday, October 12 at 11am, the newly installed heating system of Sevan Hospital was officially put into operation. An opening ceremony held at the hospital has marked the completion of another energy efficiency pilot project implemented by AEAI Armenia under the USAID funded EE, DSM and RE Program. The event was attended by USAID Mission Deputy Director Karl Fickenscher, the city mayor Gevork Malkhasyan, representatives of USAID as well as hospital personnel, Thermoservice local ESCO, members of AEAI and mass media.

Due to the pilot project, the institution has switched from inefficient and costly electric heating to natural gas thus ensuring more affordable and secure conditions for work and medical treatment. AEAI has renovated the entire internal heating system of the building, installed high efficiency gas boilers for space and water heating, constructed gas and heat supply networks as well as repaired and insulated the old windows and outside doors. The project was co-funded by USAID (70%) and the beneficiary (30%) and implemented within March –August 2005.

As noted Varuzhan Manukyan, Chief Medical Officer of Sevan hospital, USAID support to the hospital not only is highly appreciated for the assistance in heating system construction, but it has also become the very first and sound investment by a donor agency. In his welcoming speech on behalf of the USAID mission, Mr. Fickenscher mentioned that this demonstration project is a good example of partnership between local and international structures.

To learn more about the pilot project please visit Our Bulletins section of the web site.

JOB ANNOUNCEMENT

August 23, 2005. Advanced Engineering Associates International (AEAI), a Boston-based consulting company, is seeking qualified candidates for the position of GIS Expert/Specialist.

Location: Afghanistan

Duration of the contract: up to 6 months

Specific requirements include:
•General MS interface/presentation reporting experience (Word, Power Point, Excel)
•ArcInfo –GIS experience (5 years minimum)
•ArcInfo - Mapping experience (4 years minimum)
•Spatial data and database experience (3 years minimum)

Desired:
•AutoCAD experience
•University education in the related field
•Fluent English

Please send your CVs to AEAI’s office via e-mail info@aeai.am

Request for Proposals: Consumer Survey in Energy Sector

August 12, 2005. Within the framework of the Armenia Energy Efficiency, Demand-Side Management and Renewable Energy Program funded by USAID, Advanced Engineering Associates International (AEAI) announces a tender among local research companies on conducting a Consumer Survey in Energy Field. The Survey will cover all sectors of Armenian economy including residential (urban and rural), commercial, industrial and agricultural sector.

To receive the full proposal package please express your interest in writing by submitting a corresponding letter to Ms. Anna Kirakosyan via email akirakosyan@aeai.am or delivering it directly to AEAI office.

The deadline for confirmations is 5 pm, August 22, 2005.

Digital Audit Equipment Introduced to Armenian ESCOs

August 11, 2005. Audit skills are indispensable to energy service companies (ESCO) for ensuring high quality services to their clients and improving energy efficiency on project sites. The USAID funded Advanced Engineering Associates International (AEAI) provides extensive assistance for the development of ESCOs in Armenia. In the framework of this activity a set of modern digital energy audit devices has been recently introduced to local companies. Manufactured in USA in state-of-art technologies, the set represents a total of 21 types of instruments and contains various sensors, measurement tools, analyzers, an infrared camera and a weather-station.

These are the measurement devices which will be used by local ESCOs to perform energy audit as well as to adjust the installed equipment and control the operation process more efficiently. The instruments measure temperature, relative humidity, lighting level, heat, current strength, power, voltage, quality analysis of electric current as well as collect all kind of meteorological data.

Last week six-day training course was organized by AEAI Armenia for around 20 participants from Armenian ESCOs, Energy Institute, ECOTEAM NGO, Alliance to Save Energy funded by USAID and Thermosupply Projects PIU of World Bank and RA Ministry of Finance and Economy. The objective was to demonstrate the equipment in action, to promote audit skills among ESCOs, to educate them in energy audit techniques as well as to develop a number of specific energy efficiency measures to be applied on sites. Mr. William Dries and Mr. Tom Sahagian, consultants from USA, have conducted the training program. The course featured classroom training combined with everyday visits to Nork Marash Hospital, AEAI pilot project site where participants have been introduced to the setup of devices, principles and ways of their functioning. The classroom training has covered not only lectures and presentations on energy economics, audit scenario, techniques and approaches, but also involved a lot of analysis and discussions. On completion of the course the trainees received appropriate certificates of participation.

An essential idea of this training, as noted Mr. Sahagian, is also that an ESCO needs not only to think as an engineer but more importantly, as a salesperson and thus master not only the technical side of the work but also understand the human nature –the skill which will definitely bring the business to success.

Energy Audit Training to Be Provided at AEAI Armenia Office

July 22, 2005. As part of Armenian ESCO development initiatives, AEAI is organizing a training course aimed at enhancing technical skills of ESCOs. The project will take place from July 29 –August 4, 2005 in Yerevan and will involve around 25 participants representing local energy companies and international organizations such as Alliance to Save Energy, Thermosupply Projects PIU of World Bank and RA Ministry of Finance and Economy, UNDP/GEF and AEAI Armenia. Two consultants from USA, Mr. William Dries and Mr. Tom Sahagian, have been invited to conduct the training.

The training objective is to promote audit skills among ESCOs, educate the participants in energy audit techniques and approaches as well as develop a set of specific measures improving energy efficiency on sites. The offered course is comprised of a classroom and a site training constituents which will divide each of the six days of training into two parts. The classroom training will cover the full range of energy audit topics including energy economics, data collection and analysis, audit scenario, introduction to the audit equipment and more. Additionally, during the workshops the participants will be provided with all necessary informational and audio-visual materials.

Forum of ESCOs and AEAI Staff Convened in Tsaghkadzor

July 15, 2005. As the Armenian ESCO Association got officially registered in May 2005, it started setting up priorities and development strategies with technical and legal support from the USAID funded AEAI Armenia. Recently AEAI has organized a two-day retreat seminar for member ESCOs and AEAI staff which took place in the Rest House of Armenian Writers’Union in Tsaghkadzor.

The forum was facilitated by Dr. Hameed Nezhad, Ph.D. from Metropolitan State University, USA who delivered workshops on Strategic Planning, Performance Contracting and Energy Sector Market Segmentation in Armenia. The lectures involved question and answer sessions followed by extensive debates during which the ESCO representatives canvassed the scope of activities for the Association to design and arrange. As a result, more than 10 joint actions have been scheduled for the current year. With Dr. Nezhad’s guidance, the participants have identified the key objectives of the Association focused on expansion of ESCO field in Armenia, promotion of affordability of energy services to Armenian consumers, building public awareness on energy efficiency and renewable energy, fostering consumer energy education, advocating for ESCO business development through creating a more favorable regulatory environment and more. A detailed SWOT analysis has helped the participants to outline the actual position of ESCOs on the market and prioritize the issues requiring new approaches and revisions.

In the near future the Armenian ESCO Association plans to launch its website and come up with various initiatives aimed at promoting the use of advanced energy efficiency and renewable energy technologies in Armenia.

Three New Energy Efficiency Pilot Projects Launched

June 16, 2005. In June 2005 Advanced Engineering Associates International has started three new pilot projects aimed at displaying energy efficient technologies in Armenia. The projects are co-funded by USAID with cost sharing by the beneficiaries making 15% and 50% of the total budgets. Subcontractors of the projects are local ESCOs Artstrom OJSC and Electroshinarar CJSC. Two of the demonstrations will be implemented in Kotayk marz and the third one in Yerevan. The ESCOs will use modern equipment manufactured in Armenia and Russia to install at the sites. All the three initiatives are cost-effective and financially feasible and also help to reduce environmentally harmful emissions at the thermal power plant.

By the first initiative, AEAI will mount local gas-fired space and water heating systems in the Rest House of the Armenian Artists’Union located in Tsakhkadzor town and intended for 26 guests. The ineffectiveness and high cost of electricity heating practiced here during the last 14 years will be replaced with safer and more affordable energy supplied through a newly installed boiler house and fully renovated internal heating and hot water supply systems. Regulative valves proposed by the pilot projects will allow consumers to adjust the level of comfort in the rooms. The project also involves weatherization works on replacement of the worn-out windows and outside doors with new and energy efficient ones and insulation of roof with glass cotton preventing from cold air infiltration into the Rest House.

With the second project AEAI will construct a private heat supply system for 6 production companies located in the area of the former production plant in Kasakh town. A boiler house with 3 gas-fired boilers will be constructed in the territory of Artstrom OJSC both for personal needs and to supply heating to the neighboring enterprises. This project is of great importance to the beneficiaries as all of them are in daily need for energy used for production purposes. Additionally, AEAI will insulate the roof of the building with glass cotton and install energy efficient windows and doors instead of the existing ones that are rather old, double-glazed and not properly fixed in frames.

A different type of pilot project will be implemented in the Erebuni branch of Armenian Electrical Network CJSC. Redesigning of the distribution network at transformer substation #165 will allow not only to redistribute loads thus eliminating big losses of power and voltage but also to increase the sustainability and security of electricity supplied to a large number of consumers residing in the area.

Eight New Energy Efficiency Projects Launched in Yerevan
and Sevan

May 4, 2005. In April 2005 AEAI Armenia started eight new pilot projects implemented by Anergo Two, Contact A, Technokom, Thermoservice and South Therm Ltd. ESCOs. The most part of the projects’sites is concentrated in the capital; however a lot of repairing, weatherization and local gas-fired system rehabilitation works will also be performed in the Town Hospital of Sevan, Gegharkunik marz. For thirteen years the hospital building was only heated by electricity having left the previously run internal heating system in an extremely poor condition. Sizeable energy losses occurred due to cold air infiltration through numerous gaps in the old and improperly fixed windows and outside doors. The problem solution offered by AEAI Armenia includes renovation of the entire internal heating system as part of full construction of the local heating system with installation of a gas-fired boiler house. The indoor comfort level will be controlled by regulating valves. This option of using gas instead of electricity for space and water heating purposes considerably reduces future energy demands; it also decreases harmful emissions at the thermal power plant making the activity beneficial from the environmental viewpoint.

Similar project has been started at the Maternity Care Research Center located in the center of Yerevan. With a 40-year old internal heating system which is currently depreciated completely after having stayed idle within the last 13 years, the Center’s sole heating option was use of low-efficient and rather expensive electrical coils. In order to provide the patients and personnel of the Center with more comfortable, secure and affordable heating EE, DSM, RE Program has approved construction of a boiler house equipped with two gas-fired boilers, low pressure gas supply pipeline as well as renovation of the internal heating system with installed cast iron radiators and regulating valves for keeping desired temperature in the rooms. The economic analysis of this pilot displays its high financial feasibility as savings are three times more than investments and internal rate of return (IRR) makes 43 %.

Another medical institution will benefit from AEAI initiatives by renovating its heating systems. Arabkir Joint Medical Center Institute of Child and Adolescent Health which for many years used ineffective electrical coils for space and water heating will now switch to gas-fired option running a newly constructed and highly efficient local heating system. In addition, the project involves isolation of heated zones from cold air as well as installation of flat plate solar collectors for water heating purpose.

Solar water heating technology will also be applied at the Yerevan based Germes-Art LLC semiprecious stone processing company. The site has excellent solar irradiation and the use of solar energy here promises significant energy and funds savings. The solar water heating system at the site will be mounted with a back up electricity component. Along with raising the process of production reliability the installation of solar water heating system will definitely reduce environmental emissions.

Local gas-fired heating systems will be fully constructed at Armenfilm NCSO Film Studio and Physics Institute in Yerevan. Weatherization of windows and outside doors will be additionally performed at the both sites whereas the second one will also involve works on internal heating system renovation.

The pilot projects commenced at the Regional (Caucasus) Academy of Information Technologies and residential building located on Sayat-Nova 33, Yerevan are practically follow-up activities aimed to enlarge the outcome of previously implemented AEAI demonstrations and use entire capacities of the already installed equipment. Thus, AEAI will construct the internal heating network of the Academy's Building #3 and expand the external heat supply pipelines connecting the building to the local gas boiler house which is powerful enough to properly provide warmth to all the buildings of the institution. Similarly, 5 residential building located in the nearby territory of the private boiler house on Sayat-Nova 33, will benefit from heat supply services. The boiler house presently uses about a half of its installed capacity making the level of this business profitability lower due to small number of consumers. Expansion of the existing external heating system to the neighboring buildings will solve the sales issue for the business and provide safe and comfortable heating to residents in winter season.

All these initiatives are aimed at demonstration of advanced energy efficient technologies and their application in various sectors of Armenia. With major funding endowed by USAID Armenia the range of projects’cost sharing by beneficiaries makes up from 20% to 50% of the approved budgets. The projects will last six months on average and will involve different measures ensuring smooth and safe functioning of heating systems.

Marketing and Business Planning Workshops Completed

March 22, 2005. Last week a two-day training course on Marketing Plan and Business Plan Development organized by AEAI Armenia took place in the AUA Business Center, Yerevan. The event involved participation of 27 trainees representing Armenian ESCOs, Heating Projects PIU of the RA Ministry of Finance and Economy, and AEAI Armenia staff members. The workshops were conducted by Dr. Hameed Nezhad, Ph.D. from Metropolitan State University, USA and AEAI Consultant.

Through comprehensive lectures and presentations Dr. Nezhad has provided the audience with elements and concepts of business planning and marketing strategies development. Dr. Nezhad has illustrated a range of examples of consumer approaches and state policies currently operated in the US and other countries. At the same time he mentioned that business in the Armenian energy field has its peculiar features and trends and the foreign practices and advanced experience should above all just be customized to the local needs.

On the second day the participants have also worked in groups to brainstorm over the major problems existing in both the Armenian society and energy sector today and to identify and prioritize the most vulnerable market segments to consider while managing their businesses.

On completion of the workshops the participants received certificates and were offered one-on-one consultations with Dr. Nezhad within two days following the training. As one of the trainees, Meri Vardapetyan, Office Manager at SolarEn ESCO and economist by profession noted, “Such workshops are of big value for Armenian companies since they stress the critical issues of marketing and planning and especially business plans development which normally makes the essential part of any enterprise. Personally for me the course was interesting and highly beneficial as it helped to refresh the knowledge gained in the course of my stiudies”.

Workshops on Marketing and Business Planning to Be Held in AEAI

7 March 2005. From 15-16 March 2005, the USAID funded Advanced Engineering Associates International Armenia will be hosting Dr. Hameed Nezhad, Ph.D. from Metropolitan State University, USA who will deliver training in Marketing Plan and Business Plan Development for Armenian ESCO representatives and other interested individuals.

The main purpose of the event is to present the concepts of business and marketing planning and discuss the related issues with regard to ESCOs operations in Armenia. In particular, this two-day training will focus on the methods and techniques of planning, energy services marketing, understanding customer decisions, identifying marketing targets as well as major competitors and current customers in the energy business field. The workshops will also broach the issues of marketing policy building including pricing of products and services, promotion and advertising, marketing plan design and other. The basic elements of business plan development starting from content elaboration and to implementation strategy will be presented and minutely discussed. The workshops will involve teamwork component as well as group discussions and Q&A sessions.

Armenian ESCOs to Establish an Association

2 February 2005. With technical input and counseling from the USAID funded Advanced Engineering Associates International (AEAI), a number of Armenian energy service companies are creating a non-governmental organization titled Association of Energy Service Companies of Armenia. The Association aims to enhance the market of energy services, strengthen cooperation of ESCOs, advocate for the rights of its members and build stronger relationships with various structures and organizations working in energy sector both in Armenia and worldwide.

Having conducted a series of meetings at the AEAI premises, the directors of 12 ESCOs have minutely discussed the matters of the new Association's mission and vision, charter, organizational development and so on. A working group has been identified to develop the Association’s budget and coordinate all activities with regard to the registration and office setup. The Association plans to get officially registered in the near future. For the moment, at the meeting held on 27 January 2005, Mr. Mikhail Martirosyan, Director of Technokom Ltd. was elected the Association President.

Meanwhile, AEAI Armenia will continue supporting the start-up as it relates to strategic planning, organization of various types of training, public awareness building and other issues.

Collaboration between Shirak Condominiums: Strengthened Partnership –Better Solutions

On January 26, 2005 the Third Nature NGO in cooperation with the Shirak Union of Condominiums convened a forum discussion on the latest developments in the area of housing resources management, energy efficient heating technologies and weatherization issues. Among the invitees were heads of the 26 condominiums presently functioning in Shirak marz, Shirak Vice-Governor, representatives of international organizations and assistance projects working in energy sector as well as the NGO members and mass media.

The event comprised a panel discussion section, public presentation of energy projects implemented to date in Armenia and site visits to Gyumri condominiums. During the presentation held in Asparez Journalists' Club the representatives of Alliance to Save Energy, Heating Projects PIU of World Bank and RA Ministry of Finance and Economy, UNDP Heating Project and Advanced Engineering Associates International (AEAI) have introduced the public to main objectives of the organizations, initiated activities and useful information materials.

To demonstrate the practical solutions of energy supply reached in Gyumri, the organizers have presented two options of natural gas heating in the residential buildings located at 155 and 157a Yerevanian Street respectively. The first project included installation of gas heaters and weatherization and was implemented by AEAI in 2002-2003 with funding from USAID. The second one, supported through the Jinishian Memorial Foundation, was completed in 2003 and involved mounting of internal heating system and construction of a boiler house on the loft of the building. The participants have inspected the sites providing their comments and suggestions as to the advantages and flaws of both options.

In an effort to properly address the needs of population, the Shirak Union of Condominiums actively works at the expansion of its services and technical assistance to condominiums in Shirak marz. Funded through the Eurasia Foundation in 2004, the Gyumri-based Third Nature NGO currently implements project on Establishing Regional Support Center of Shirak for Administrative Bodies of Residential Buildings.

FIVE MORE USAID-FUNDED ENERGY EFFICIENCY PILOT PROJECTS IMPLEMENTED IN ARMENIA

December 10, 2004. Starting from April, USAID has implemented five new energy efficiency and renewable energy projects in Armenia as part of the Energy Efficiency, Demand-Side Management and Renewable Energy Program (EE, DSM, RE Program). The demonstration projects have been implemented in the municipal, residential and industrial sectors of the country characterized by intensive energy consumption. Because of high electricity tariffs in Armenia, the efficiency projects have vast energy saving potential and help the users to reduce their energy expenditures significantly. In addition to their cost-effectiveness, the energy efficiency technologies are also more environmentally friendly.

Majority of the projects were aimed at demonstrating energy efficient heating technologies both for large and smaller facilities. Natural gas-fired boilers were installed in the Regional Academy of Information Technologies, Polyclinic #8, residential building at 29 Aram Khachatryan Street in Yerevan. The heating network was also rehabilitated in the second building of Nork Marash Medical Center where USAID had already installed the boiler under the previous project. The residential thermo-supply pilot involved only one entrance of a large residential building at A. Khachatryan Street. The purpose of the project was to show the feasibility of small-scale energy efficient heating technologies intended for a limited number of consumers in a multi-apartment building. The boiler house was located on the building roof and is ready to supply the thermal energy to the residents as early as this winter.

In all of the heating projects, the renovation of the heating network was combined with other energy efficiency measures such as weatherization and installation of thermo-regulating valves (TRVs), which allow consumers to regulate the in-door temperature according to their needs. The weatherization of windows and doors isolate heated zones from cold areas and prevent air infiltration thus saving energy.

Apart from the heating projects, USAID has also funded the technical upgrading of ArmRusGasProm electric transformer substations in Yerevan. The objective of this energy saving pilot was to reduce the normative and the stand-by losses from electric transformers through the application of various energy efficiency technologies.

In 2005, USAID is planning to implement more energy efficiency projects in Armenia under the EE, DSM, RE Program.

AEAI Rehabilitated Heating System in Nork Marash Medical Center

September 20, 2004. Two USAID-funded energy efficiency demonstration projects have been recently completed in Yerevan’s Nork Marash Medical Center under the Armenia Energy Efficiency, Demand-Side Management and Renewable Energy Program (EE, DSM and RE Program).

Being one of the largest and most advanced medical institutions in Armenia, Nork Marash Center has had no centralized heating for nearly a decade. To keep its six buildings warm, the hospital administration had to use electric heaters –a rather costly and ineffective method of heating. For example, in 2002-2003 heating season, the medical center paid more than 17000 US dollars to heat the main building only.

With funding from USAID, Advanced Engineering Associates International - the USAID contractor in the EE, DSM, RE Program –rehabilitated the heating system in two buildings of the medical center converting it to natural gas. Owing to energy efficiency measures performed in the buildings, the hospital will be able to reduce the natural gas consumption and energy expenditures significantly. Weatherization of windows and doors allows saving up to 20% of heat losses: the pictures taken by a special infrared camera showed almost total reduction of heat losses from windows as a result of weatherization. The thermo-regulating valves installed on radiators enable the occupants to regulate the temperature inside the buildings thus economizing on the use of natural gas. For example, the savings of the medical center only due to thermo-regulating valves will exceed 3000 USD during the heating season.

Renewable energy technologies were also effectively incorporated into this energy efficiency project. Solar collectors are mounted on the roof of the medical center and provide hot water for various domestic needs.

The hospital administration has been very enthusiastic about this project and appreciated the assistance of USAID. By their acknowledgment, the new heating system is safer and much more affordable for them compared to the formerly practiced electric heating.

AEAI SIGNED NEW CONTRACTS WITH ESCOs

During the week of April 12, AEAI was signing the contracts with ESCOs on the implementation of five energy efficiency pilot projects.

The new contractors and new projects are:
Electroshinarar –Transformer Sub-Station Redesign at Armrusgasprom
Termoservice –Boiler House Reconstruction in the Regional Academy of Information Technologies
Technokom –Heating System Rehabilitation for a Residential Building at 29 Khachatryan Street
Technokom –Rehabilitation of Heating System for a Second Building in Nork Marach Medical Center
Artstrom –Local Heating System Installation at Yerevan Polyclinic # 8

All projects will be completed by September 2004.

AEAI WILL LAUNCH NEW CYCLE OF PPROJECTS SOON

April 12, 2004. Upon completion of the first cycle of energy efficiency and renewable energy projects started in 2003, AEAI is going to launch several more energy efficiency projects funded by USAID. ESCOs, with support from the AEAI engineering staff, identified new project sites, made all the necessary technical and economic analysis and prepared project proposals.

Ready proposals for five projects were passed to USAID pending their approval. The new cycle will mainly include heating projects and one electric redistribution project. The project sites include medical and educational facilities and one residential building in Yerevan.

ENERGY EFFICIENCY, DEMAND-SIDE MANAGEMENT
AND RENEWABLE ENERGY PROGRAM

The USAID-funded Armenia Energy Efficiency, Demand-Side Management and Renewable Energy (EE/DSM/RE) Program started in May 2001. It is managed by Advanced Engineering Associates International (AEAI) - a Boston-based consulting company specializing in international development activities.

The broad goal of the EE/DSM/RE program is to identify and realize substantial benefits for Armenia's economy and individual Armenians from increasing energy efficiency and developing country’s available renewable energy resources. AEAI/USAID has developed a portfolio of energy efficiency and renewable energy demonstration projects. The pilot projects should help to identify sustainable and cost-effective solutions to replace the expensive electricity and to meet the heating demand. To expand the local market of energy efficiency services, Armenian energy service companies (ESCOs) are participating in all phases of the pilot projects, from site identification, proposal development to their implementation. AEAI provided extensive training to ESCOs including ESCO establishment and basic business course, proposal preparation, project management, monitoring and evaluation, energy audit, Certified Energy Manager course, weatherization course, In the scope of EE/DSM/RE Program AEAI has signed 14 contracts with local energy service companies (ESCOs) for pilot projects implementation.

Energy efficiency demonstrations have been built in municipal, residential, industrial/commercial and agricultural sectors and can be mainly categorized into three types: heating/weatherization, renewable energy and electric projects. While the major part is financed by the USAID, the local stakeholders –project beneficiaries –share from 15 to 40% of the project cost.

Different measures with total number of 35 were used in the pilots and included gas heating from locally installed high-efficiency boilers, HVAC (combined heating, ventilation & air-conditioning), weatherization, metering and controls, efficient lighting, biogas production, solar water heating and wood drying systems. Some of these energy technologies such as HVAC and wood drying chambers are new for Armenia. Although new technologies might seem costly, initial installation expenses will be paid back from savings as the systems operate. The simple payback period of most pilot projects ranges f