Armenia: High Voltage Electrical Networks, CJSC

Armenia is a small landlocked country facing geopolitical constraints. Its economy grew fast from the mid-1990s until 2008. The economic crisis of 2008 2009 exposed the vulnerabilities of Armenia's economy. Construction fell by about 40% in 2009, accounting for most of the 14.1% loss in GDP that year. The government's response mitigated the social impacts of the crisis, but also resulted in a sharp rise in external public debt, from about 16% of GDP in 2008 to about 48% in 2017.Armenia has no proven oil or natural gas reserves. With limited energy resources, Armenia can meet only 35% of the total demand for energy from domestic resources. It imports most of its fossil fuel resources from the Russian Federation (through Georgia) and has begun importing gas from Iran. Imports account for about 77% of the total primary energy supply, and natural gas imports from the Russian Federation account for 81% of total energy imports. Armenia's energy sector has moved from a severe crisis in the early 1990s to relative stability. Its power system has a total installed generation capacity of 4,100 megawatts (MW), 74% (3,047 MW) of which is operating. Power generation comprises 31% nuclear, 28% hydropower, and 41% thermal power (using imported natural gas). The country produces enough electricity to meet the annual domestic demand of about 6.0 billion kilowatt-hours (kWh). With a population of 3.3 million, it has an electrification ratio of 100%. A combination of policy, legal, regulatory, and institutional reforms have had good results. Improvements in operating efficiency such as a decrease in technical and nontechnical line losses, and a nearly 100 percent collection rate, have helped create commercially viable service providers; however, issues related to energy supply, subsidies and administration remain. Strengthening energy security and improving energy efficiency are the country's top priorities. Development of indigenous energy resources and rehabilitation of old and inefficient generation, transmission, and distribution infrastructure are critical to the country's energy security and more importantly to sustainable economic growth.