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The electricity sector of Armenia consists of several companies which provide electricity generation and distribution across the country. Generation is carried out by multiple companies both state-owned and private. Distribution is controlled by Electric Networks of Armenia CJSC (ENA), High Voltage Electrical Networks CJSC (HVEN CJSC) , and Electro Power System Operator CJSC. There are over 36 000 km of distribution lines across Armenia.

As of 2016, the majority of the electricity sector is privatized and foreign-owned (by both Russian and American companies), which is the result of a law passed in 1998 that allowed for the privatization of electricity generation and distribution in the country. Administration and government legislation of the sector is conducted by the Ministry Of Energy Infrastructures and Natural Resources Of The Republic Of Armenia. Regulation of the sector is performed by the Public Services Regulatory Commission of the Republic of Armenia.

Electricity is generated by one nuclear power station (Metsamor Nuclear Power Plant), two natural gas powered thermal power plants (Yerevan Thermal Power Plant and Hrazdan Thermal Power Plant ), several hydropower plants (Vorotan Cascade , Sevan-Hrazdan Cascade , and 115 small hydropower plants ), one wind farm (Lori Wind Farm ), and a very small scale biogas power plant (Lusakert Biogas Plant  ). As Armenia does not have any fossil-fuel reserves, it relies on gas imports from Russia and Iran, and nuclear fuel imports from Russia, which result in approximately 66 % of electricity production. Local hydropower plants account for approximately 36 % of production. Less than 1 % of electricity is provided by a wind farm and a biogas plant. Armenia is a net-producer of electricity and has exported in excess of 1.3 billion kWh per year since 2014 to Iran  , Georgia , and Nagorno-Karabakh.

Large investments have been made in the electricity sector in Armenia over the past few years. These include the construction of a $247M combined-cycle thermal power plant (Yerevan Thermal Power Plant) completed in 2010, a $52M loan from the World Bank in 2015 to improve the reliability of electricity distribution across Armenia   , and a $42M investment in 2016 by Electric Networks of Armenia to repair distribution networks. There are further investment opportunities in the sector as Armenia has significant potential for electricity production from renewable energy sources such as hydropower, wind, solar, geothermal, and biogas. Plans for Armenia’s first geothermal power plant in Jermaghbyur (Jermaghbyur Geothermal Power Plant) are currently being implemented. An $8.55M grant was awarded by the World Bank in 2015 for further exploration of geothermal resources in Armenia. In June 2016, the Armenian Parliament updated a law on “On Energy Saving and Renewable Energy” which encourages the use of solar power in the country and requires users of solar installations of 150 kW or less to sell their excess energy back to the electrical grid. Armenia is said to soon be announcing a tender for the implementation of a 50 MW solar power plant beginning in 2017, and which should be operational by 2020.

The voltage in Armenia is 220V AC at a frequency of 50 Hz. Armenia uses the European 2-pin C-socket and F-socket plugs.

Memberships
The Ministry Of Energy Infrastructures and Natural Resources Of The Republic Of Armenia is a member of the following international energy sector organizations: These organizations assist the Ministry in improving Armenia’s electricity sector through upgrades, conducting surveys, and by offering administrative assistance for setting energy sector legislation.
 * International Atomic Energy Agency (IAEA)
 * International Renewable Energy Agency (IRENA)
 * Energy Charter
 * EU Energy Community
 * Electricity Council of the Commonwealth of Independent States.

Electricity consumption
In 2014, Armenia consumed 5352 GWh of the total 7956 GWh of electricity production (7750 GWh domestic production and 206 GWh imports). This is approximately 67.3 % of the total. The biggest consumer was the residential sector (1924 GWh, ~ 24.2 %), and the smallest was the fishing industry (0 GWh, ~ 0 %).

Debts
Electric Networks of Armenia (ENA) received a loan from the World Bank in 2016 to pay debts owed to electricity producing companies in Armenia, primarily the Metsamor Nuclear Power Plant and the Yerevan Thermal Power Plant.

Billing
Customers are billed monthly in kWh. Bills can be paid at physical locations such as Haypost (the Armenian post office), banks, and payment terminals   , and electronically via mobile apps and SMS  , and via the Internet.

Tariffs
Electricity tariffs are dependent on the time of day (night/day), and the voltage supplied to the customer. Tariffs are determined by the Public Services Regulatory Commission of the Republic of Armenia while wholesale prices are determined by the Settlement Centre CJSC.

There were protests (Electric Yerevan) from June to September 2015 over a price increase for electricity, which was eventually increased by 6.93 Armenian dram per kilowatt-hour (AMD/kWh) (~US$0.015/kWh) to 39.78 AMD/kWh (~US$0.0830). From August 1, 2016, prices were decreased by 2.58 AMD/kWh (~US$0.0054) from 48.78 AMD/kWh (~US$0.1018) to 46.2 AMD/kWh (~US$0.0964).

Subsidies
Depending on the amount of electricity consumed, the Government of Armenia subsidizes electricity bills of consumers who utilize less than 500 kWh of electricity per month. Additionally, solar installations of 150 kW or less are able to sell their excess energy back to the electrical grid.