ArmInfo. The issue of liberalization of the electricity sector in Armenia is one of the most discussed today. This was stated by Seda Shahinyan, Head of the Legal and Licensing Department of the Public Services Regulatory Commission of the Republic of Armenia, during the panel discussion "Energy Security of the Republic of Armenia. Challenges and Solutions".
According to her, the process of liberalization of the electricity market was launched on February 1, 2022. This is about transferring the complete energy model to a model of market competitive regulation. To solve this problem, political will was needed, legislative and regulatory acts were adopted that are aimed at achieving this goal. This large-scale work was carried out jointly with international partners, as a result of which over 500 rules of conduct in this area were approved.
Shaginyan also noted that 2024 has become a year of radical reforms in the electric power industry, the main goal of which is to replace monopolies with competition. Despite the fact that natural monopolies will retain their positions in the market in the near future, their influence on the market and, as a result, on the final tariff for consumers will be limited. Demonopolization of the market over the past three years has led to consumers having the right to choose an electricity supplier. All large consumers have the opportunity to conclude direct contracts for wholesale supplies of electricity from specific generation facilities with the involvement of companies engaged in the field of electricity transmission. Smaller consumers also have the right to choose. Using the capabilities of the natural monopolist represented by Electric Networks of Armenia, they will be able to choose a supplier of products. This, according to the speaker, is the cornerstone of the reform process. Moreover, the transition to market relations is carried out entirely in electronic form, which in turn leads to targeted responsibility of market participants.
The representative of the PSRC also noted that the liberalization of the electricity market is a very important component for attracting investment. As of now, there are about 40 business entities that have made investments for a more effective transition to new business conditions. Moreover, these investments were made without expectations of any government guarantees. The volumes of solar generation facilities already built or under construction have already exceeded 300 MW.
In addition, new participants have appeared on the market, not only in the business sector, but also among consumers, which include, first of all, qualified consumers. One should not discount the opportunities for international electricity trade, the supply volumes of which are 10 times higher than the trade volumes before the liberalization process. However, these figures cannot satisfy anyone yet, especially if we take into account the existing potential. To do this, it is necessary to use high-voltage power lines with two neighbors - Georgia and Iran.
The implementation of the reform process, as the speaker noted, will further improve the country's energy security, Shaginyan stated.
