Electricity sector in Armenia

The electricity sector of Armenia includes several companies engaged in electricity generation and distribution. Generation is carried out by multiple companies both state-owned and private. In 2020 less than a quarter of energy in Armenia was electricity.

Electricity sector of Armenia
Data
Installed capacity (2012)3213.2 MW
Share of fossil energy22.00%
Share of renewable energy40.11%
Average electricity use (2014-15)5,352 GWh
Distribution losses (2014-15)11.70%
Transmission losses (2014-15)11.70%
Consumption by sector
(% of total)
Residential24.20% (2014-15)
Industrial18.60% (2014-15)
Commercial and public sector12.50 (2014-15)
Institutions
Responsibility for regulationPublic Services Regulatory Commission of Armenia
Responsibility for policy-settingMinistry of Energy Infrastructures and Natural Resources of Armenia
Responsibility for renewable energyArmenia Renewable Resources and Energy Efficiency Fund
Renewable energy lawThe Law of Armenia on Energy Saving and Renewable Energy, 2004

As of 2016, the majority of the electricity sector is privatized and foreign-owned (by Russian and American companies), which is the result of a law passed in 1998 allowing for the privatization of electricity generation and distribution in the country. Administration, government legislation, and policy of the sector is conducted by the Ministry of Energy Infrastructures and Natural Resources of Armenia. Regulation of the sector is performed by the Public Services Regulatory Commission of Armenia.

Armenia does not have any fossil-fuel reserves, so it relies on gas imports from Russia and Iran, and nuclear fuel imports from Russia, which, together, result in approximately 66% of electricity production. Armenia is a net-producer of electricity and has exported in excess of 1.3 billion kWh per year since 2014 to Iran, Georgia, and Artsakh.

Large investments have been made in the electricity sector in Armenia in the 2000s. These include the construction of the $247M combined-cycle Yerevan Thermal Power Plant completed in 2010, a $52M loan from the World Bank in 2015 to improve the reliability of electricity distribution across Armenia, and a $42M investment in 2016 by Electric Networks of Armenia to repair distribution networks.

In June 2016, the Armenian Parliament updated the law “On Energy Saving and Renewable Energy” which encourages the use of solar power in the country and allows users of solar installations of 150 kW or less to sell their excess energy back to the electrical grid.

The voltage in Armenia is 220 V AC at a frequency of 50 Hz. Armenia uses the European 2-pin C-socket and F-socket plugs.

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