Electric energy market liberalization to form efficient system -  Vahagn Khachaturyan 

ArmInfo.  Energy Week Armenia started in the country will discuss energy development  prospects for the coming years. 

Opening the event, RA President Vahagn Khachaturyan pointed out the  importance of diversifying the supply of energy resources to the  country. He noted that the country's dependence on one source of  supply always carries risks. The same applies to any other area in  which there cannot be development if there are companies that occupy  a monopoly position in the market. There is still work to be done in  this direction to reform the country's energy sector. Some work in  this direction has already been carried out, especially regarding  legislative reforms. The United States Agency for International  Development (USAID) is providing assistance in implementing the  reform program.

Khachaturyan emphasized that any presented program is a tool to  overcome existing challenges. In particular, liberalization of the  electricity market would have become impossible without appropriate  legislative regulation. As a result of the implementation of this  project, it will be possible to create an efficient energy system,  attract serious investments, eliminate the emergence of monopolists  in the market and overcome corruption. "Today we can say that the new  system, launched on February 1, 2022, was the result of bold steps  and it is already bearing fruit," said the President of the Republic  of Armenia, adding that the monopolist operating in the market is  trying to create barriers to the liberalization of the electricity  market. He called on the regulator, represented by the Public  Services Regulatory Commission, to treat the monopolist with the  utmost severity.

Khachaturyan noted that serious changes are taking place in the  structure of electricity production, caused by more active  development of renewable energy, the share of which in the overall  balance should be 60% by 2030.

Last February, the liberalization of part of the energy market of  Armenia began. Thus, consumers can choose their own supplier and  purchase electricity at the price specified in the contract. An  electronic trading platform has been launched since February 1, which  allows for a certain liberalization of the market. At the same time,  the guarantee of mandatory purchase of electricity, previously  provided by the state to small hydroelectric power plants for a  period of 15 years, will not work in the new conditions.  Licenses  for the construction and operation of power plants will be provided  without quotas and corresponding state guarantees, but according to a  simpler scheme.

By connecting to the electronic platform, these business entities  will be able to wholesale the electricity they produce.