Energy Policy Review of Armenia 2022
Executive Summary
Armenia faces significant energy-related challenges, primarily due to its reliance on imported natural gas from Russia. The country is the only one in the Caucasus region to operate a nuclear power plant. Since the 2015 review, Armenia has made notable progress in several areas, including energy statistics, energy efficiency, and the development of renewable energy. The government has approved a new Energy Sector Development Strategic Programme, setting a foundation for sectoral transition until 2040.
Key government priorities include:
- Maximizing the potential for renewable energy and energy efficiency
- Increasing power interconnections with neighboring countries
- Gradual liberalization of the domestic electricity market
This in-depth review aims to guide Armenia in its energy-sector reforms and help it achieve its energy policy goals, including providing affordable, safe, secure, and clean energy to its population.
Electricity
- Supply and Demand: Armenia's electricity sector is heavily dependent on imported natural gas, with limited domestic production.
- Networks: The country is working towards improving its electricity networks to enhance reliability and efficiency.
- Sector Structure and Reform: The government is implementing reforms to liberalize the domestic electricity market, aiming to increase competition and improve service quality.
Gas
- Overview: Natural gas accounts for a significant portion of Armenia's energy mix, with almost all supplies imported from Russia.
- Supply and Demand: The country is exploring opportunities to diversify its gas sources and reduce dependence on Russian imports.
- Infrastructure: Efforts are underway to develop gas infrastructure to support increased usage and storage capabilities.
Oil
- Overview: Oil plays a minor role in Armenia's energy mix, with most consumption imported.
- Supply and Demand: The country is focusing on reducing oil imports and promoting energy efficiency measures.
Renewable Energy
- Development: Armenia has made progress in developing renewable energy sources, particularly solar and wind power.
- Potential: The country has significant potential for renewable energy, which the government aims to maximize.
Energy Efficiency
- Progress: Armenia has made strides in improving energy efficiency, although there is still room for improvement.
- Strategies: The government is implementing various programs to enhance energy efficiency across different sectors.
Energy, Environment, and Climate Change
- CO2 Emissions: Armenia faces challenges in reducing CO2 emissions from fuel combustion, which contribute to environmental degradation and climate change.
- Mitigation Strategies: The government is exploring strategies to mitigate these impacts, including investments in clean energy and energy-efficient technologies.
Recommendations
- Enhance Energy Security: Diversify energy sources and improve infrastructure to reduce dependency on imported fuels.
- Promote Renewable Energy: Accelerate the development of renewable energy sources, particularly solar and wind power.
- Improve Energy Efficiency: Implement more effective energy efficiency measures across various sectors.
- Strengthen Environmental Protections: Develop and implement strategies to reduce CO2 emissions and promote sustainable practices.
Overall, Armenia's energy policy aims to ensure a reliable, affordable, and sustainable energy supply while addressing environmental concerns and fostering regional cooperation.