Armenia Power Emergency Energy Storage Project

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 reliable is the energy system in Armenia?

Energy system reliability in Armenia is now considered adequate, as investments in electricity and gas infrastructure, increased residential access to gas and operational improvements since the mid-1990s have led to significant declines in outages and losses.

How does electricity trade work in Armenia?

Electricity trading is currently limited, however, as Georgia and Armenia have asynchronous systems and Armenia’s market is mostly closed. Electricity trade with Iran is based on a barter agreement, whereby much of the gas imported from Iran is used in power generation at the Yerevan power plant, which in turn exports the power to Iran.

What is the electricity market like in Armenia?

Armenia’s electricity market operates under the single-buyer model and includes six large generation companies (private and state-owned), more than 205 small power producers and one transmission system operator (TSO). Generation and transmission operations are unbundled. There is no competitive wholesale electricity market.