One of Armenia’s most important factors for energy sector development is regional integration.

The Republic of Armenia has been a member of the CIS Electric Power Council since 1992. The 47th session of the CIS Electric Power Council took place in Yerevan in 2015.

The Armenian and Russian governments have signed two agreements aimed at extending operational status at the Armenian Nuclear Power Plant until the year 2027.

Construction of Power Transmission Lines:

Agreements have been reached with KfW Bank, World Bank and the Asian Development Bank for the modernization and new construction of infrastructure and transmission lines. The construction of 400 kV power transmission lines linking Iran, Armenia and Georgia is of great importance and in the eyes of many, a crucial step towards regional integration.

Electricity Market Liberalization:

Framework on the liberalization of Armenia’s electric energy market and the promotion of interstate commerce was presented to the Government of the Republic of Armenia through program-schedule of events, jointly developed with experts from the US Agency for International Development (USAID).

On February 7th, 2018, the RA National Assembly adopted the RA Draft Laws on Amendments and Addendums regarding energy, licensing and the RA Law on State Duty. With the adoption of these decisions, the process of liberalization of the RA Electricity Market was registered.

Energy Efficiency policy is an essential factor for the country's energy security, while increasing economic competitiveness and reducing the negative impact of the surrounding environment.

The Government of Armenia is pursuing a policy of boosting energy efficiency methods in all sectors of the economy.

On December 10, 2015, the Government approved the “Strategic Program for the Long-Term Development of the Energy System of the Republic of Armenia” (up to 2036). Measures within this document are divided into two periods, mid-term up to 2025 and long-term up till 2036.

Post implementation, results will show a change in the structure of internal power generation for consumption with Renewable Energy solutions reaching a share of 40% of the energy production market.

On February 2nd, 2017, The Government of Armenia approved the "Second phase of the Energy Efficiency Action Plan for Armenia 2017-2018" (EGP-2) through Protocol Decision No. 4-7.  The adoption of this action plan will provide new measure’s which will help further develop energy savings policies in the Republic of Armenia and identifying specific, concrete steps to be taken for its implementation.

Legal Background and Programs

The RA Law on Energy Efficiency and Renewable Energy (2004)

"National Program on Energy Savings and Renewable Energy" (2007)

"Action Plan of the Government of the Republic of Armenia for the Implementation of the National Energy Efficiency and Renewable Energy Program of the Republic of Armenia" (2010)

Order of the President of the Republic of Armenia "On Approving the Concept of Ensuring Energy Security of the Republic of Armenia" (2013)

"Armenia's Energy Security Action Plan for 2014-2020. Program "(2014)

Strategic document "Long-term development of the energy system of the Republic of Armenia (till 2036)" (2015).

“National Program for Energy Efficiency and Renewable Energy of the Republic of Armenia”

Geothermal energy

The planet’s internal heat is an abundant, inexhaustible source of energy. Studies have discovered several potential locations, three of which have shown the presence of volcanic magmatic hearths through geophysical research.

"Jermaghbyur" Geothermal Platform

This site is located at the "Bugurchay" upper stream of the Jermaghbyur River near Sisian, at an altitude of 2650-3000m. Geological and geophysical research suggest the likely existence of high pressure (20-25 ccm) hot water reserves (up to 250 C) at a depth of 2500-3000 meters.

"Girdzor" and "Karkar" geothermal platforms

These platforms can be-found 7 km’s southwest of "Jermaghbyur", in the waterbed of the Syunik mountain range at an altitude of 2750-3100 m. Funded by the RA state budget and the European Bank of Reconstruction and Development, geophysical studies for the "Girdzor" and "Karkar" geothermal platforms have been completed.

Other sites with geothermal potential include Sisian, Mount Vayots, Lake Akna, Gholghat, Mukhan, and the Nuclear Power Plant of Armenia.

Biomass Energy

Biogas

Biogas potential in Armenia is approximately 135 mln m3 of annual output. The sector is in its initial stages of development and is attracting interest from foreign investors.

Bioethanol

The Renewable Energy and Energy Efficiency Fund (R2E2), assisted by the World Bank and Global Environment Facility grants, has organized a study on the "Assessment of Bioethanol Production, Potential Utilization, and Perspectives in Armenia". The studies results show potential long-term assessment of 30,000 tons annual production which constitutes 10% of annual petroleum consumption in Armenia. The study suggests utilizing certain agricultural crops for efficient production: gooseberry, corn, and raw cellulose.

Wind Energy has significant potential and is one of the fastest growing sectors for energy production.

Wind power energy in the Republic of Armenia has total capacity of 450 MW with annual output of 1.26 bln kWh electricity. High prospect areas include the mountain passes of Zod, Jajoor, Sevan, Bazoum mountains; Qarakhach and Pushkin passes, Geghama mountains, Aparan, Meghri and the highlands between Sisian and Goris.

According to the Public Services Regulatory Commission, as of 1 July, 2018, there are 3 operating wind power stations with total rated capacity of 2.910 MW. Additional 2 stations with rated capacity of 5.320 are under construction.

Current international investment projects

On March 30, 2017, the RA Ministry of Energy and Natural Resources and "Acciona Energy Global S. L." signed a memorandum on the construction for 100-150 MW capacity wind power plants in Armenia.  In December 2017, the company began implementing wind potential assessment work. Two 80-meter-high wind power monitoring stations and one "Sodar" system were installed. Each station is equipped with eight anemometers, three anemometer data display units, two thermo-humidity meters and one barometer.  

On March 30, 2017, the government of the Republic of Armenia, based on a corresponding decision, expressed support for a United Arab Emirates based company, "Access Infra Central Asia Limited", to construct wind power stations with a capacity of up to 150 MW in Armenia.

In 2017 thermal power plants produced 2,742,933,455 kWh of electricity which constitutes 37.2% of electricity produced in the Republic of Armenia.  

History

Electricity production in the southern regions of the USSR with limited fuel resources was carried out on the basis of thermal energy.  This is why the construction of thermal power stations began in Armenia's industrial energy centers: Yerevan (1960), Vanadzor (1961), Hrazdan (1963).

Operating Units and Capacities

"Yerevan TPP" CJSC

Established in 1963

Capacity- 550 MW (Heat output capacity: 630 Gcal/h)

On March 29, 2005, the government of the Republic of Armenia and the Japanese Bank for International Cooperation (JBIC) signed the ARM-P2 Loan Agreement regarding the implementation of the "Yerevan Combined Cycle Power Plant (Power Unit) Project".  The agreement envisaged building a modern, high-performance, environmentally friendly, fully-automated combined cycle power plant adjacent to the thermal power plant. Thanks to new technologies invested in the plant, the station's efficiency reached 70%, reducing fuel consumption by half.    

"Hrazdan Energy Company" CJSC

Established in 1966

Capacity- 300 MW (Heat output capacity 560 Gcal/h)

"Hrazdan TPP" is an example of a productive, entrepreneurial cooperative between Armenia and Russia. By the decision of the government of the Russian Federation, 100% of the company's shares were transferred to Inter RAO OJSC, a dynamic, developing electric power company which oversees a number of production and distribution assets in Russia and abroad.   

"Gazprom Armenia" CJSC (Hrazdan-5)   

"Hrazdan-5" is a unique structure with the latest technological solutions implemented not only for Armenia but also the entire region's gas-energy sector.  New methods of electricity generation were applied combining steam turbine/gas turbine technologies. The operation of the power unit ensures participation in the domestic electricity production market and enables the development of programs for export markets.  

Hydropower has historically been one of Armenia’s main resources for electricity production.  At present, the total capacity of Armenia's hydropower stations is 1324.4 MW.

Two major hydropower plants (HPPs).   

1. Sevan-Hrazdan cascade- "RusHydro" JSC

Installed capacity - 560 MW

Sevan-Hrazdan HPPs Cascade includes 7 HPPs: Sevan's (34 MW), Hrazdan's (81 MW), Argel's (224 MW), Arzni's (70 MW), Kanaker’s (102 MW), Yerevan-1 (44 MW) and Yerevan-3 (5 MW) HPPs. The HPPs are placed on the Hrazdan River and at presently use irrigation water flow from Lake Sevan and stream water from the Hrazdan River.

2. Vorotan cascade- "Contour Global Hydro Cascade" CJSC

Installed capacity - 404 MW

Produced electricity in 2017 - 934.558.255 kWh ("Settlement Centre" CJSC report)

Vorotan HPP cascade consists of 3 hydropower plants constructed on the Vorotan River in the region of Syunik and are supplied by river and stream water. HPP Cascade consists of Spandaryan (76 MW), Shamb (171 MW) and Tatev (157 MW) HPPs.

Small hydropower plants of Armenia

The development of small hydropower plants (SHPPs) has been a success story in Armenia over the last two decades. As of the 1st of July 2018, the PSRC reports 186 small hydropower stations with installed capacity 360.4 MW which is currently generating electricity; 33 SHPP’s are under construction with a total projected capacity of 63.2 MW and 222 million kWh electricity annual supply. According to the Decision of the Government of the Republic of Armenia (N 1300- Ա from 8 of September 2011), plants with less than 30 MW of installed capacity are considered small hydropower plants (SHPP).

In 2017 the generation of electricity from SHPP’s is approximately 844 million kWh which is 11.4% of the total generated electricity in Armenia (total generated electricity is approximately 7409.4 million kWh). In 2017, renewable energy resources have a share of 31% of the total balance of generated electricity in the Republic of Armenia (total generated electricity from renewable resources is 2255.1 mln kWh).

Small hydro energy is the most developed among renewable energy resources in Armenia. According to the Hydro Energy Development Concept of RA (accepted on 29 of DEC 2016),  main targets in developing small hydro energy have mostly been achieved. There is still progress and opportunity for new capacities as well as new important challenges for repowering stations, raising productivity and development units in accordance with international technical and environmental standards.

Armenia has very high potential for solar energy ( average annual solar energy output per 1 m2 of the horizontal surface is 1720 kWh/m2 and one-fourth of the country has 1850 kW/m2 of solar energy per year).

Industrial PV stations

“Masrik 1” (55 MW) PV station International Tender

“Masrik 1” is the first ever industrial scale PV project in Armenia. A consortium of leading companies (Fotowatio Renewable Ventures B.V from the Netherlands and FSL Solar S.L. from Italy) offered an unprecedented low tariff of USD 0.0419 (AMD 20.11) VAT excluded.

Masrik-1 will be constructed in the Municipality of Mets Masrik, Gegharkunik region. This fully funded foreign investment will have the annual capacity to produce 120 mln kWh. The expected investment is about USD 50 mln.

Solar PV stations up to 1 MW

In 2016 the Public Services Regulatory Commission set the tariff for industrial solar PV stations with a capacity up to 1 MW.  The total rated capacity is limited to 10 MW. According to PSRC data as of July 1, 2018, seven of the 12 licensed companies have launched with the remaining 9 currently under construction.

Solar PV stations up to 5 MW

In 2018 the PSRC set the tariff for industrial Solar PV stations with a capacity up to 5 MW at 23.864 AMD per Kwt. The total rated capacity is limited to 100 MW. Within a month electricity generation licenses were issued to six  companies with a total capacity of 30 MW (5 MW capacity per plant).

Development Programs

Popularization of Autonomous Power producers

Within the framework of events aimed at stimulating the development of autonomous energy producers, the Republic of Armenia National Assembly ratified H0-262-N on December 21, 2017, which revised the 150 kWh net metering limit. As a result, 500 kWh was set as the limit for legal entities. There are legislative grounds for major energy consumers to execute the functions of autonomous power generators exclusively to meet their own needs. The RA Law “On Energy Efficiency and Renewable Energy” establishes a clause on the amount of non-provisional compensation for electricity supplied within the limits of electric energy transit for autonomous producers of renewable energy and electricity distribution licenses. The Law presents an improvement in energy transit timetable efficiency.

Development of solar technologies for non-gasified communities

In August 2017, the “Energy Efficient” loan program was launched for non-gasified communities within the Republic of Armenia in cooperation between the public-private sectors and financial institutions. The beneficiaries of this project include 38,242 families inhabiting 282 non-gasified communities who are expected to have the opportunity to take advantage of special financial tools and consume energy more efficiently. As of February, 2019, the projecthas been implemented in 126 communities, with 2083 Solar Water Heaters and 71 PV systems installed. 

The Project results are apparent: as of 1 July 2019, 1145 autonomous energy producers are connected to the Energy Network of Armenia, with about 17 MW capacity. 88 with 2.43 MW total capacity are in the process of connecting.

As of December 1, 2018, there are 1654 Solar Water Heaters installed in non-gasified communities.

Nuclear energy is one of the most important components of Armenia’s energy independence. 

ANPP N2 power plant with a 407.5 MW capacity is currently operational. In 2017, according to a "Settlement Centre" CJSC report, ANPP CJSC supplied 2,411 mln kWh of electricity which constitutes 32.54% of the Republic of Armenia's energy production.

History

In September 1966, the USSR Council of Ministers decided to construct a nuclear power plant in Armenia. The plant’s construction began in the 1970s. Consisting of two VVER-440 model reactors, the ANPP’s initial capacity was limited to 815 MW with a capacity of 407.5MW for each power unit.

In April 1993 the Government of Armenia decided to resume operations at the Armenian Nuclear Power Plant. On November 5, 1995, the operation of the ANPP N2 power unit (407.5 MW) resumed.

In accordance with a 2015 decision by the government of the Republic of Armenia, work has begun to extend the life of the plant.  

Currently activities aimed at justification and extension of the service life till 2026 are being implemented.

Operational Data