1 2 kw solar inverter factory in Armenia

Armenia is making progress in further diversifying its power generation mix, particularly by aiming to build significant solar PV capacity. Armenia's 2021 Energy Strategy calls for up to 1 000 MW of solar PV capacity by 2030, at which point grid-connected solar is expected to account for 15% of generation.

Domestic energy production comes mainly from Armenia's one Soviet-era nuclear power plant (Armenian Nuclear Power Plant ) and from hydroelectricity. Since Armenia does not produce fossil fuels, all of the natural gas and oil products used in the country have to be imported.

The 2021 Energy Strategy considers maximum use of the country's renewable energy potential to be a key policy priority. The Armenian government expects solar PV capacity to reach 100 MW by 2024 and 1 000 MW by 2030, and at that point to account for at least 15% of total generation. Some increase in wind is also expected.

Armenia's energy system depends primarily on natural gas, nuclear and hydroelectricity. Natural gas is by far the largest contributor to total energy supply (TES), as well as the main energy carrier in total final consumption (TFC). Since the transport sector depends primarily on natural gas, the importance of oil in the economy is relatively low.

Armenia is moving from a regulated, single-buyer model to a competitive power market, with a launch date set for February 2022. The careful preparation of this work over many years is to be commended. As part of the first stage of market reforms, the government plans to improve protection mechanisms for vulnerable customers.

Armenia depends on imports to meet much of its energy needs, particularly natural gas from the Russian Federation. It is one of the few ex-Soviet republics to avoid significant energy subsidies, and it is the only country in the Caucasus region to possess a nuclear power plant.