In December 2020, Armenia’s Public Services Regulatory Commission (PSRC) issued new tariffs on electricity; these came into effect from 1 February 2021.
Daytime electricity tariffs increased by 6.2%, from AMD 44.98 to AMD 47.98 per kWh; night-time tariffs increased by about 7.9%, from AMD 35.00 to AMD 37.98 per kWh. Tariffs for vulnerable families and families with monthly consumption below 400 kWh (totalling about 90% of individual subscribers) will remain unchanged, whereas, for other consumers, including businesses, the tariffs will increase by AMD 3.00 per kWh (including VAT).
While the increase is not substantial, it could still strain businesses and might result in higher prices for final consumer goods. Therefore, it can also be concluded that the importance of energy efficiency will further increase in the future, leading to greater awareness of the benefits of high-performing technologies and of energy from renewable sources, specifically solar.
According to the Bloomberg New Energy Outlook, wind and solar PV will grow to generate 56% of global electricity by 2050. With innovation and scale driving the cost of renewable energy down and increasing the quality of technology, renewables are now the cheapest new electricity, and in five years, they will even be cheaper than coal and gas.
Armenia has significant solar energy potential. The average annual amount of solar energy flow per square meter of the surface area is about 1,720 kWh (the average for European countries is 1,000 kWh).
The financial benefits of a solar power plant are very attractive in Armenia: an investment of US$ 65,000 could offer annual electricity savings of up to US$ 11,600. By financing a project through GEFF, a business can obtain an additional grant upon completion of the project.
Subscribe to our quarterly newsletter