How has Armenia restructured its energy sector?

Prompted by a severe electricity supply crisis in the mid-1990s, Armenia has revamped its energy sector over the past 20 years. Parts of the sector have been privatised, some companies have been restructured, most households now have access to gas, and cost-reflective tariffs have been introduced.

Why does Armenia need a single energy supplier?

Armenia relies on imports of natural gas and oil for most of its energy needs, which exposes it to supply risks and dependence on a single supplier. As the government considers energy security and the development of indigenous sources to be of prime importance for the energy sector, renewables and efficiency measures are key areas.

How much energy does Armenia need?

It has been an observer to the Energy Community since 2011 and a member of the Eastern Partnership since 2009. Although Armenia’s energy demand averages more than 3 Mtoe (3.59 Mtoe in 2020) and the country does not produce any fossil fuels, it manages to cover 27% of energy demand with domestic energy production.

Where does Armenia get its energy from?

Lacking indigenous resources, Armenia imports natural gas and oil for most of its energy needs (78.6% of total energy supply in 2020), mainly from the Russian Federation (hereafter, “Russia”).

How much energy does Armenia produce in 2021?

In 2021, Armenia produced 7.7 TWh of electricity, of which natural gas covered 44% (3.4 TWh), hydro and other renewables 30% (2.3 TWh) and nuclear 26% (2.0 TWh). In the Caucasus region, Armenia is the only country producing nuclear energy. Armenia’s energy demand averages more than 3 Mtoe (3.59 Mtoe in 2020).

How can Armenia synchronise its energy system with its neighbours?

To synchronise its system with those of its neighbours and provide electricity at competitive prices, Armenia will have to open its relatively closed electricity market. The Ministry of Territorial Administration and Infrastructure (MTAI) is responsible for developing and implementing energy policy.