1.1 Energy dependency

Armenian’s energy sector has been integrated into united energy system of the Soviet Union and had about 3,400MW total installed capacity of generation plants including: thermal power plants of 1,600MW, nuclear power plant of 800MW and hydro power plants of about 1000MW. After the collapse of the Soviet Union, and declaring independency in 1990, the devastating earthquake and country’s blockade Armenia suffered energy crisis. Presently the country is operating about 2,000MW of production capacity with over 6 billion kWh/year electricity generation. Over 75% of electricity generation and about 100% of heat generation depends on the imported fuel (natural gas and nuclear fuel). Most of generating facilities including the nuclear power plant are out-aged. The generating sub-sector needs significant investments to modernize and build new plants to meet increasing energy demand. In 2025 the electricity generation is forecasted at about 10 billion kWh/year.