Armenia substation energy storage system

Armenia's energy transition project also forms part of the Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, which has an overall financing envelope of $2 billion equivalent. The Programme was approved by the World Bank's Board of Executive Directors in March this year.

“To ensure affordable, reliable, and clean electricity supply for consumers, Armenia needs continued investments in modernizing the power transmission network and improving the commercial viability of the High-voltage Electric Networks of Armenia JSC, the transmission company.

In 2021, 62 percent of Armenia's total energy supply came from natural gas, followed by oil (16 percent), nuclear (14 percent), and hydro (5 percent), whereas the share of nontraditional renewable energy sources (wind and solar) was only about 1 percent.

The World Bank's Board of Executive Directors has approved $40 million for the Republic of Armenia, focusing on the rehabilitation of power transmission substations, the adoption of reforms to allow the country's transmission company to access private financing and the promotion of energy sector modernisation.

According to the World Bank in a release, Armenia's power sector is heavily dependent on imported fuels, especially natural gas, which creates significant energy security risks, compounded by the global energy crisis. Attracting private investment is essential to fund the large-scale projects needed in the sector.