• Source: Energy in Armenia

Energy in Armenia is mostly from natural gas. Armenia has no proven reserves of oil or natural gas and currently imports most of its gas from Russia. The Iran-Armenia Natural Gas Pipeline has the capacity to equal imports from Russia.
Despite a lack of fossil fuel, there are significant domestic resources to generate electricity in Armenia. The Armenian electrical energy sector has had a surplus capacity ever since emerging from a severe post-Soviet crisis in the mid-1990s, thanks to the reopening of the Metsamor Nuclear Power Plant, which was built in 1979 and supplies over 40% of the country's electricity. Armenia has plans to build a new nuclear power plant in order to replace the aging and dangerous Metsamor, possibly a small modular reactor. The country also has eleven hydroelectric power plants and has plans to build a geothermal power plant in Syunik. Most of the rest of Armenia's electricity is generated by the natural gas-fired thermal power plants in Yerevan (completed in 2010) and Hrazdan.
Upon gaining independence, Armenia signed the European Energy Charter in December 1991, the charter is now known as the Energy Charter Treaty which promotes integration of global energy markets. Armenia is also a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest. Since 2011, Armenia holds observer member status in the EU's Energy Community.




History and geopolitics


Before the USSR collapsed, oil imports made up about half of Armenia's primary energy supply of 8000 ktoe (compare to 3100 ktoe in 2016).
Back then, oil made its way to Armenia via a direct rail link from Armenia-Georgia-Russia, but since the Abkhazia-Georgia border is closed fuel is transported across the Black Sea to Georgia from where it makes its way to Armenia via rail cars. Further restriction to Armenian oil imports represents economic blockade maintained by Azerbaijan to the East, and Turkey to the West. The blockade began shortly after the outbreak of the First Nagorno-Karabakh War and was upheld ever since, despite a cease fire agreement in 1994.




Rankings


Armenia was ranked 43rd among 125 countries at Energy Trilemma Index in 2018. The index ranks countries on their ability to provide sustainable energy through 3 dimensions: Energy security, Energy equity (accessibility and affordability), Environmental sustainability.




Primary energy supply


Total primary energy supply in Armenia in 2016 amounted to 3025 ktoe (1000 tonnes of oil equivalent). This roughly matches or surpasses production of previous years. TPES included Production (963 ktoe), Imports (2235 ktoe), Exports (-122 ktoe), International Marine Bunkers (0 ktoe), International Aviation Bunkers (-45 ktoe), Stock Changes (-5 ktoe). Armenia's Total Final Consumption is 2120 (ktoe), Losses -180 (ktoe), Industry 320 (ktoe), Transport 622 (ktoe) and Residential 786 (ktoe).




Natural reserves


Armenia has no proven oil or gas reserves. Earlier explorations failed to deliver satisfactory results in the past .
In 2018 new permits for oil and gas exploration were issued to Tashir Group affiliated companies.




Oil


According to Statistical Committee of Armenia no oil was imported in 2016, but rather its refinement products.




= Proposed Iranian pipeline

=
Armenian and Iranian authorities have for years been discussing an oil pipeline (distinct from the existing Iran-Armenia natural gas pipeline) that will pump Iranian oil products to Armenia. As of early 2011, no concrete dates have been set for the construction. Armenian Energy Minister Armen Movsisian has said that the construction will take two years and cost Armenia about $100 million. Earlier Iran's oil minister said that the 365-kilometer pipeline could go on stream by 2014. Iran plans to export 1.5 million liters of gasoline and diesel fuel a day to Armenia through the pipeline; Armenia's annual demand for refined oil products stands at around 400,000 metric tons.




Natural gas



Natural gas represents a large portion of total energy consumption in Armenia, accounting for 50% and is the primary means of winter heating in the country.
Gazprom Armenia (owned by the Russian gas giant Gazprom) owns the natural gas pipeline network within Armenia and holds a monopoly over the import and distribution of natural gas to consumers and businesses.
Armenia's thermal power stations (which supply approximately 24% of its electricity) run on natural gas, making Armenia (at the present time) dependent on imported Russian gas.




= Russian-Georgian pipeline

=
The Russian gas export monopoly Gazprom supplies Armenia with gas through a pipeline that runs through Georgia. In 2007, Gazprom provided Armenia with just under 2 billion cubic meters of natural gas. As a transit fee, Armenia pays Georgia approximately 10% of the gas that was destined to reach Armenia. Russian natural gas supplies to Georgia and Armenia are provided by two main pipelines: the North Caucasus-Transcaucasus pipeline (1,200 mm diameter) and the Mozdok-Tbilisi pipeline (700 mm diameter).
In 2008, Armenia imported 2.2 billion cubic meters of natural gas from Russia.




= Iranian pipeline

=
A new gas pipeline, the Iran-Armenia Natural Gas Pipeline, was completed in October, 2008. It is owned and operated by Gazprom Armenia and links Armenia to neighboring Iran, which has the world's second largest natural gas reserve after Russia. It has a capacity to pump 2.3-2.5 billion cubic meters of Iranian gas per year. The Armenian Ministry of Energy said in 2008 that it "does not yet have a need" for Iranian gas. Analysts said that Armenia's reluctance to import Iranian gas was a result of pressure from Russia which maintains a monopoly over Armenia's natural gas market.
Gazprom wholly owns a crucial 24-mile section of the pipeline which Armenia surrendered in exchange for natural gas supplies from Russia at prices well below the European average until 2009. According to an analyst, Armenia "effectively bargained away its future prospects for energy sources in return for cheaper prices now." While Armenia could diversify its gas supply, with control of the Iran-Armenia gas pipeline, Gazprom now controls the competitors' supply.
In 2009 Armenia was importing 1-1.5 million cubic meters of Iranian natural gas, paying for this by electricity exports.
Armenia receives about 370 million cubic meters of gas a year from Iran, which is converted into electricity and is sent back to Iran.
Gas from Turkmenistan might be supplied via Iran.




= Pricing

=

According to the agreements reached in 2017 by Karapetyan government gas import price stands at $150 for one thousand cubic meters throughout year 2018. Gazprom Armenia sells it to Armenian households at almost $300.




Electricity



Since 1996 three main energy sources for electricity generation in Armenia were natural gas, nuclear power and hydropower.
Despite a lack of fossil fuel, Armenia has significant domestic electricity generation resources. In 2006, non-thermal domestic electricity generation accounted for 76% of total generation: 43% nuclear and 33% hydroelectric. In comparison, in 2002, these numbers were 56%, 32%, and 26%.
In 2006, Armenia's power plants generated a total of 5,940.9 million KWh of electricity of which 5,566.7 million KWh were delivered (374.2 million KWh – or 6.3% – was consumed by the producing plants). Thus, in 2006, Armenia's power plants on average generated 678.2 MW of power, while the country's electricity consumption rate on average was 635.5 MW.
Armenia has a total of 11 power stations and 17 220 kV substations. A map of Armenia's National Electricity Transmission Grid can be found at the website of the Global Energy Network Institute here [1].




= Nuclear power

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= Fossil gas power

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= Hydro

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= Solar

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Renewable energy






See also



Economy of Armenia
Ministry of Energy Infrastructures and Natural Resources




Notes






External links



Armenian Nuclear power plant
Armenian Nuclear Regulatory Authority
Ministry of Energy and Natural Resources of Armenia
Public Services Regulatory Commission of The Republic of Armenia Archived 2019-10-12 at the Wayback Machine (statistics on electricity generation & consumption, natural gas consumption, and thermal energy generation)

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