Energy Sector Development and US Government Support

During the past 10 years, the Government of Armenia (GoA) has made remarkable progress in reforming its energy sector and overcoming complex and interrelated difficulties that Armenia’s energy sector faced in the 90’s. With donor assistance, including U.S. Agency for International Development (USAID) as a main donor supporting sector reforms, the GoA has taken serious steps to improve energy sector performance. Nuclear energy was reintroduced in 1995 and the reliability of supply has increased. Non-payment by customers has been substantially reduced with virtually all private consumers now paying for their energy use. An energy law setting forth the principles for the regulation of the energy sector has been passed and a Public Services Regulatory Commission has been created. The electric and gas sectors were reorganized, and international accounting standards are being introduced. The gas industry and the electric distribution company have been privatized. Each of these reforms has contributed to Armenia’s economic growth since the mid-1990s.

Implementation of an aggressive commercialization and privatization strategy resulted in the significantly improved quality of service and financial health of the sector. In addition, with United States Government (USG) support the Armenian Government developed and approved a national strategy for long-term development of Armenian power sector, and new standards for power industry were put in place. In large measure, the USG programs have completed sector macro- level reforms and have put the energy sector on a more sustainable path.

At present the USAID has contracted with Tetra Tech to:

  • Assist the Government of Armenia in establishing and implementing the necessary data collection and reporting systems and rules and regulations to prepare its national Energy Balance, in accord with standards of the International Energy Agency (IEA), thus helping to implement its national energy efficiency strategy and establish a baseline that can be used for selecting clean energy actions and for measuring progress towards their implementation.

  • Assist the Government of Armenia in conducting its Energy Balance for 2010.

  • Assist the Government of Armenia in improving the accuracy of its national Green House Gases (GHG) inventory in accordance with the guidance of the Intergovernmental Panel on Climate Change (IPCC).

The anticipated outcomes of this Activity are:

  • Draft legal procedures developed authorizing the development of mandatory requirements for reporting and collection of administrative data and of primary enterprise-level data to prepare Armenia’s energy balance and GHG inventory.

  • Draft regulations and institutional frameworks developed specifying obligations for reporting and collection of administrative data and of primary enterprise-level data to prepare Armenia’s energy balance and GHG inventory.

  • Draft data collection, analysis and reporting tools developed for affected government entities and enterprises, including questionnaires, guidance, training programs, capacity building materials, and sample reports to prepare Armenia’s energy balance and GHG inventory.

  • An updated energy balance and national GHG inventory developed.

  • Institutionalized systems in place for updating of Armenia’s energy balance and GHG inventory.