The RA Public Services Regulatory Commission (PSRC) decided to make a gradual transition to a new electricity market model, starting from February 1, 2022. Numerous suppliers will then sell the electricity they produce at free-market prices. The purpose of the new regulations is to establish the necessary legal and economic preconditions for the liberalisation of the electricity market. In addition to introducing competitive components, the aim is to support a smooth transition by:
The Market Liberalization & Electricity Trade Program (MLET), funded with support from USAID, aims to update the Armenian electricity market. The toolkit in the new market model creates an opportunity to:
An online platform will be used for wholesale electricity production and trade (export and import). In addition to Electric Networks of Armenia (ENA) CJSC, other companies will also be able to obtain a supply license, offer electricity on the online platform, and sell electricity to consumers at free-market prices. Consumers not participating in the wholesale market, i.e. residents, will continue to receive guaranteed energy supply from ENA. ENA will retain exclusive distribution rights; as the infrastructure is a natural monopoly, it is not economically expedient to include another participant.
With the gradual liberalisation of the electricity market, competitive conditions will improve. Tariffs will stabilise and become more attractive, raising regional trade to a new level. From a green economy point of view, local suppliers and international investors will have greater opportunity to develop and distribute green energy in the market, thus increasing business efficiency and expanding the country’s potential for economic development and GDP growth.
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