In the framework of UNDP-GEF “Development of Armenia’s Fourth National Communication and Second Biennial Update Report to the UNFCCC” project the new report of “2018 Energy Balance of the Republic of Armenia” was released. The report was officially published in the Social Economic Situation Report (5 February 2020) of the Statistical Committee of the Republic of Armenia (RA SC).

The Energy Balance was developed in cooperation with the GHG inventory compilation expert team. The report reflects the assessment of the energy security level of the country, the diversification of power supply and the trends in greenhouse gas emissions, as well as the evaluation of the progress in achieving the targets of the United Nations Framework Convention on Climate Change.

In particular, the development of the energy balance is necessary for:

1. Assessment of the country’s energy independence, including the power produced at the renewable energy sources in the energy balance;
2. Study of the fuel and energy production and consumption structure;
3. Study of the fuel and energy resources demand;
4. Analysis of the fuel and energy balance structure for its improvement;
5. Definition of the capital investments volumes for the development of the fuel and energy complex in the country;
6. Identification of the export and import volumes of fuel and energy resources;
7. Assessment of the energy efficiency potential;
8. Identification of the greenhouse gases & other emissions volumes and the development of the measures to minimize their negative impacts on the environment, etc.

As a methodological base for the compilation of the Report the guideline published by the IEA, Eurostat and Organization for Economic Cooperation And Development (OECD) as well as the “Explanatory Note on Energy Balance of Armenia” developed by the Economic Development Research Centre (EDRC) was applied. In compilation of the Report the data from the Statistical Committee of the Republic of Armenia (RA SC), Public Services Regulatory Commission (PSRC), Ministry of Territorial Administration and Infrastructures  (MTAI) and Armenia Renewable Resources And Energy Efficiency Fund (R2E2) served as official resources and Energy balances of Armenia for 2010, 2011, 2012, 2014, 2015, 2016 and 2017 have been analyzed. The Preliminary Energy Balance of Armenia for 2018 has been discussed with the specialists from RA SC and MTAI.

The Energy balance presents the general information and overview and data of the main energy carriers: electric energy, natural gas, thermal energy, oil product, coal, wood and other biofuels, as well as renewable energy carriers, such as hydro, wind, solar and geothermal energy.

According to the report the electric energy is one of the most developed areas in the economy of Armenia. There are both the traditional sources for electricity production and the alternative sources, contributed by recent governmental decisions. Hydro energy is the most developed among the other renewable energy resources in Armenia. Armenia also has significant potential for solar energy production with solar water heating and PV power plants.

Among the number of findings presented in the Report some of key conclusions are listed below:

• Armenia remains a country with great dependence on the imports of the energy resources. In 2018 imported energy resources in the total primary supply of energy were 73.4 percent, while the share of domestic production was 26.6 percent.
• The main source for the domestic production of the primary energy resources are nuclear and hydro energy which share amounted to 67.7 percent and 22.4 percent correspondingly in 2018. In 2018 the share of firewood was 18.2 percent and the share of biomass (manure) was 11.1 percent.
• The main sector for the energy consumption is the transport the share of which in 2018 amounted to 33.3 percent against the total amounts of the final consumption for energy purposes. The next major consumer is the households which share was 33.1 percent in 2018.

Energy balance is a valuable instrument for the assessment, documentation and monitoring of the energy efficiency and renewable energy indicators in the country for the given year.    

Collection and processing of the statistical data and compilation of the energy balance are the first steps for the analysis of the energy situation in the country allowing the assessment of the previous trends and formation of the future policy addressed to the development of the energy sector. Data in the energy balance enable the assessment of the energy efficiency level in the different sectors of the economy and households.

The role of clear and comprehensive information is constantly increasing and allowing to not only be limited to the qualitative conclusions, but also to reveal quantitative assessments for energy policy.