All markets


With a cumulative score of 1.78, Armenia ranks number 16 among emerging markets and number 43 in the global ranking.

  • Emerging markets
  • Asia-Pacific

2.14 / 5

Power score

1.02 / 5

Transport score

1.48 / 5

Buildings score


Low-carbon strategy

Net-zero goal and strategy

Armenia does not have a net-zero goal or strategy, but a target is under discussion.

Nationally Determined Contributions (NDC)

Armenia in May 2021 submitted an updated Nationally Determined Contribution (NDC), a non-binding plan to achieve the goals set out in the 2015 Paris Agreement. The country aims to cut emissions by 40% from 1990 levels by 2030. The main sectors included in its mitigation strategy are energy, industrial processes and product use, agriculture, waste and forestry.

Fossil fuel phase-out policy

Armenia is highly dependent on fossil fuel imports and does not currently have a fossil fuel phase-out policy.


Power policy

Armenia has auctions, a feed-in tariff policy, and net metering to encourage renewable energy uptake. The government is awarding more projects, especially in the solar space. Solar power purchase agreement (PPAs) last for 20 years for feed-in tariffs and up to 50 years for auctions. PPAs are signed in Armenian drams but are indexed to US dollars.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Tariffs in Armenia increased 23% in 2021 from a year earlier. Customers can choose daytime or nighttime tariffs. In response to Covid-19, the government introduced a subsidy to make power cheaper for those who are unable to afford electricity.


Power market

The primary generation technology in Armenia is natural gas, accounting for 41% of total electricity generation. But there has been a large uptake in solar in recent years. The Armenian government had initially aimed for 21% of electricity generation to come from renewable resources (excluding large hydro) by 2020, rising to 26% by 2025. Neither target was legislated. While the 2020 goal was ambitious, data compiled by BloombergNEF suggests that Armenia exceeded its target. The country now aims for 40% of generation to come from renewables by 2025.

Armenia has a 100% electrification rate and Electric Networks of Armenia (ENA) is the country’s only power distributor and retailer. Unlike power distribution, generation in Armenia has been unbundled. There are some private companies active in generation outside of autonomous solar energy producers, such as the International Energy Corporation CJSC and Gazprom Armenia.

Installed Capacity (in MW)

2012201420162018202001K2K3K4K MW

Electricity Generation (in GWh)

2012201420162018202002K4K6K8K GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

A new government came to power in 2018 and there are significant political tensions with Azerbaijan. The Armenian government has taken a passive stance on renewable investment, discouraging many investors, and there was also a retroactive slashing of wind feed-in-tariffs. In addition, Armenia is in large amounts of debt to Russian energy company Gazprom PJSC.

Many of Armenia’s hydropower plants are antiquated. The country’s remaining nuclear power plant, which was built in the 1970s, will also soon need either an expensive refurbishment or to retire. Armenia had previously rejected financial assistance from Russia for its nuclear assets, but has in recent years accepted this aid.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

The electric vehicle (EV) market in Armenia is nascent. There are only about 30 medium (level 2) charging stations in the country, so EV infrastructure is lacking. There is no plan in place to improve this infrastructure.

EV policy

The country does not have a clean transport target, although it has expressed an intent to increase clean transportation methods in its NDC. Armenia in 2019 approved an amendment to the Tax Code that exempted all EVs from value-added tax (VAT) until January 1, 2022. At the end of 2021, the government extended the VAT exemption until January 1, 2024. Since 2019, Armenia has been discussing state-level plans to switch to using EVs for official purposes. However, as of the end of 2022, the government and other state agencies have yet to acquire official EVs.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

The Armenian government implemented the Second National Energy Efficient Action Plan (NEEAP) in 2015, which outlines how the country plans to increase energy efficiency in buildings. This plan applies to all buildings with the goal of making them nearly net zero.

Armenia mostly uses natural gas for heating. The average cost of a heat pump in Armenia is 48,500 Armenian drams ($120).

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

The International Energy Agency in October 2020 published a roadmap to boost building sector energy efficiency in Armenia, which outlines pathways from 2020 to 2040 for Armenia to advance this sector.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

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