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.

What percentage of Armenia's Energy is renewable?

Renewable energy resources, including hydro, represented 7.1% of Armenia’s energy mix in 2020. Almost one-third of the country’s electricity generation (30% in 2021) came from renewable sources. Forming the foundation of Armenia’s renewable energy system as of 6 January 2022 were 189 small, private HPPs (under 30 MW), mostly constructed since 2007.

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.

How important is R&D in energy technology and innovation in Armenia?

Research and development (R&D) in energy technology and innovation in Armenia is not significant, though it is becoming more important. The government’s plan to develop new renewable energy technologies will increase the need for technology and innovation funding, and for skilled human resources.

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.

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.