
According to in 2015 electricity generation in Armenia increased since 2009 to nearly 8000 GWh, but still remains below 1990 levels. Also, in 2015 Armenia consumed more than twice as much natural gas than in 2009. lacks source, and heavily relies on the production of elect. Currently, Armenia is in the initial stages of developing a pilot project on battery storage, with plans for a utility-scale project with an estimated installed storage capacity of 1,200 MWh to be . [pdf]
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.
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.
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.
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”).
Armenia also has a large solar energy potential. Compared with other countries, the average annual energy flow is higher; therefore, there is large interest in this energy sector.
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.
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