Energy in Armenia

Energy in Armenia describes energy and electricity production, consumption and import 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 nuclear power station at Metsamor.

Armenia has no proven reserves of oil or natural gas and currently imports nearly all of it from Russia. The new Iran-Armenia Natural Gas Pipeline has the capacity to provide twice Armenia's 2008 natural gas consumption. It has the potential to provide energy security for Armenia as an alternative to the Russian-dominated imports that flow through the Georgian border.

Despite a lack of fossil fuel, Armenia has significant domestic electricity generation resources. The Metsamor Nuclear Power Plant provides 42.9% of the country's electricity. Armenia has plans to build a new NPP in order to replace the aging Metsamor which was built in 1979. 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.

Wind power in Armenia is underdeveloped and as of 2008, Armenia has only one wind power farm located in the Lori marz. The Armenian and Iranian energy sectors are currently jointly constructing the Iran-Armenia Wind Farm which is set to become the country's largest wind farm.

Armenia is 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.

It is estimated that nearly 80 percent of Armenia's energy system is under Russian control.