Phased liberalization of the energy market in Armenia starts on February 1, 2022

On February 1, 2022, a program of gradual liberalization of the energy market of Armenia will start, Deputy Minister of Territorial Administration and Infrastructures of the Republic of Armenia Hakob Vardanyan said during the presentation of the Program of Market Liberalization and Electricity Trade.

According to A. Vardanyan, the global market liberalization process began in 2018 and is currently at the final stage. For the implementation of the program, the United States Agency for International Cooperation (USAID) provided Armenia with a grant of $ 8.5 million.

"From February 1, 2022, a phased liberalization should begin, which means that some plants will no longer have a tariff set by the Public Services Regulatory Commission (PSRC), but will start selling their electricity at a price formed as a result of supply and demand in the market. They will become participants in the wholesale market. , whose subjects will acquire this electricity in market conditions, "he said.

He stressed that the gradual liberalization of the electricity market will ensure equal competitive conditions, will help stabilize tariffs, and will raise regional cooperation to a new level.

The activities of the Program for Market Liberalization and Electricity Trade are carried out in three key areas: development of the electricity market, diversification of supplies and stimulation of interstate electricity trade with Georgia.

The objectives of the program are to support the Armenian government in carrying out electricity market reforms, work on simplifying the regulatory practice in Armenia, taking into account EU directives, helping to create an investor-friendly environment for increasing competitiveness, and developing the electricity industry and regional trade.