Armenia has climbed 9 notches to rank 43rd in the World Energy Trilemma Index 2018, produced by the World Energy Council (WEC) in partnership with Oliver Wyman, Armenia's Ministry of Energy and Natural Resources said.
The index ranks 125 countries' energy performance based on global and national data on three factors: energy security, energy equity and environmental sustainability.
The report says Armenia is strengthening regional energy ties with its neighboring countries the Islamic republic of Iran and Georgia. It is building a high-voltage 400 KV power line with Iran and a similar program is being developed with Georgia.
According to the report, over the past year, Armenia has been rapidly developing solar energy having launched four photovoltaic power stations with a total capacity of 4 MW. In the coming years, Armenia will continue to develop the potential of solar energy, the report says.
"Armenia also participates in the creation of a common electricity market with other members of the Eurasian Economic Union," the report says.
Armenia is located between Chile (42) and Turkey (44). It has surpassed its regional neighbors - Georgia (69th) and Iran (81st). Of the CIS countries, only Azerbaijan (27th) has outstripped Armenia, Ukraine is ranked 57th, Russia is 59th, Kazakhstan is 72nd, Tajikistan is 92nd and Moldova is 97th.
Transition to a liberal model for the energy market will lead to a decrease in electricity tariffs in Armenia. Acting Minister of Energy Infrastructures and Natural Resources, Garegin Baghramyan, stated the aforementioned at a press conference this week in Yerevan.
In his words, several law reforms have been implemented in the country's energy sector, over the past six months, and, in particular, the amendments to the Law on Energy envisage the introduction of a liberal model for Armenia's energy market, as of 2020.
"Thanks to it, a competitive [playing] field will be created for carrying out [energy] supplies," the acting minister said. "An institution of wholesale trade and traders will be introduced; the mutual accountability of each ring in the [energy] distribution networks will be increased."
That, according to Baghramyan, will lead to Armenia being able to import cheaper electricity, and, as a result, the price of electricity will reduce in the country.
Note that the Armenian company Aksiona will build a wind power plant with the 200 MW capacity. The news was announced by a representative of the company during a meeting with the acting Minister of Energy Infrastructures and Natural Resources Garegin Baghramyan who is ready with ministery to provide assistance to the company in the implementation of the investment program.
Armenia has two operating wind power plants. One is Arats LLC, located near the city of Kajaran in the south of Armenia. The second wind power plant with the capacity of 2.64 MW is located in the north of the country.
Finally, renewable energy has become a bit of a boom segment for Armenia recently.
These are all positive developments, but there continues to be untapped potential in terms of renewable energy production, and international interest in developing the sector in Armenia is expected to increase considerably in coming years. This investment is also crucial in order for Armenia to achieve its targets - and further open up the field for companies with expertise in renewables.