Energy Law at Armenia
Here's an overview of Energy Law in Armenia:
⚖️ Energy Law in Armenia
1. Legal Framework
Energy in Armenia is primarily regulated by the following legal acts:
Energy Law of the Republic of Armenia (adopted in 2001, amended frequently) – This is the core legislation regulating the generation, transmission, distribution, and consumption of energy.
Law on Energy Saving and Renewable Energy (2004) – Promotes energy efficiency and renewable energy development.
Law on Licensing – Governs the licensing of energy activities.
Civil Code of Armenia – Applies to contractual and property relations in the energy sector.
Environmental Legislation – Related to environmental impact of energy projects.
2. Regulatory Bodies
Public Services Regulatory Commission (PSRC) – An independent regulatory body responsible for:
Issuing licenses for energy operators
Approving tariffs
Ensuring fair competition
Protecting consumer rights
Ministry of Territorial Administration and Infrastructure (MTAI) – Develops energy policy, infrastructure planning, and coordination.
3. Key Components of Energy Sector
Electricity: Includes generation, transmission, and distribution. The sector is partially privatized.
Natural Gas: Mainly imported from Russia (via Georgia) and Iran. The system is operated by Gazprom Armenia.
Renewable Energy: Hydropower, solar, and wind are growing, with government incentives and donor-supported projects.
Nuclear Energy: Armenia operates one nuclear power plant (Metsamor NPP), which is state-owned and a major source of electricity.
4. Licensing & Tariffs
All key energy activities require licenses from the PSRC.
Tariffs are regulated to ensure affordability and investment returns.
Tariff-setting is transparent and often includes public hearings.
5. Renewable Energy Focus
Armenia promotes renewables through:
Feed-in tariffs and auctions
Net metering for solar installations (up to 150 kW for individuals, 500 kW for legal entities)
International investment incentives
Green energy legislation aligned with EU and EAEU standards
6. Challenges
Aging infrastructure, especially in electricity transmission and distribution
Dependence on imported energy resources
Modernization of the Metsamor Nuclear Plant
Need for increased energy diversification and resilience
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