Armenia s power supply side energy storage policy

How has energy security changed in Armenia?

Armenia’s energy security has greatly improved since the gas and power supply crisis in the early to mid-1990s. During the crisis, energy sector management was dysfunctional, losses were extremely high, and the collection rate was below 50%. This resulted in acute supply shortages, with households receiving only a few hours of power per day.

How is Armenia's power sector regulated?

Armenia’s power sector is regulated by the Energy Law adopted in 2001. The Energy Law provides basic principles for national policy, but does not specify the authority of the government or MTAI to make policy decisions, nor does it define MTAI’s role in the power sector.

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 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.