6 FAQs about How to store energy for peak load regulation in Armenia

How is Armenia's power sector regulated?

Armenia's power sector is regulated by the Energy Law adopted in 2001. The Energy Law provides basic principles for national policy, but does not specify the authority of the government or MTAI to make policy decisions, nor does it define MTAI's role in the power sector.

How much oil can be stored in Armenia?

According to a 2008 Energy Charter report, Armenia's oil product storage facilities are of adequate capacity, as requirements far exceed annual consumption. Up to 1.2 Mt of light oil products and 0.9 Mt of fuel oil can be stored, but most depots do not comply with modern standards and many need repairs.

Why does Armenia need a single energy supplier?

Armenia relies on imports of natural gas and oil for most of its energy needs, which exposes it to supply risks and dependence on a single supplier. As the government considers energy security and the development of indigenous sources to be of prime importance for the energy sector, renewables and efficiency measures are key areas.

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 the gas supply system work in Armenia?

The gas supply system uses a single tariff structure. At the retail level, electricity rates for residential consumers increased 70% from 2009 to 2019, and natural gas rates rose by 172% from 2005 to 2019. In 2016, the import gas price was reduced from USD 165 per 1 000 m3 to USD 150 per 1 000 m3 under the purchase agreement for Gazprom Armenia.

How much energy does Armenia need?

It has been an observer to the Energy Community since 2011 and a member of the Eastern Partnership since 2009. Armenia's energy demand averages above 3 Mtoe (3.40 Mtoe in 2019), comparable to that of Moldova or Tajikistan. Natural gas dominates the energy mix (63% of total primary energy supply in 2019).

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