2024 year of radical electric energy reforms 

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.