international

Europe and Eurasia: Armenia

Armenia Energy Regulatory Partnership: Advancing Market Reforms

NARUC experts and PSRC staff discuss promotion of renewables at a partnership exchange in June 2012 in Yerevan, Armenia.

The Energy Sector

Armenia’s electricity is mostly generated by nuclear energy and hydro. The country also has abundant renewable energy potential. As Armenia meets all of its own electricity demand, the country also trades electricity with its neighbors. 

Armenia has reformed its power sector, which includes unbundling of a vertically integrated electricity subsector and privatization of the entire power and gas distribution networks, and of most generating companies.

 

Our Work

With the support of the United States Agency for International Development (USAID), NARUC supported the Public Service Regulatory Commission (PSRC) of Armenia to help increase its capacity to implement market reforms and improve the quality and effectiveness of its regulation. 

NARUC experts assisted PSRC in drafting laws on promotion of competitive wholesale electricity markets and use of energy from hydropower and natural gas, while also working with the regulator to address other key needs. NARUC also facilitated interactions and engagement between Armenian officials and those from neighboring countries, notably Georgia, as well as among regulators through the Black Sea Regulatory Initiative. 
 

Selected Results

Licensee Oversight
NARUC supported Armenia’s path toward a more open and competitive market by providing assistance to PSRC on auditing practices through a NARUC consultancy and a job shadow in 2016-2017. NARUC supported PSRC in its review and revision of internal processes and procedures necessary to perform effective oversight of licensees in the electricity sector, work that led to the development of a Monitoring Rule and Investment and Procurement Monitoring Procedures. 

In addition to the drafting of the rule and procedures intended to guide PSRC’s monitoring and auditing of licensees, NARUC’s work on the subject resulted in PSRC’s decision to transition to more comprehensive compliance audits and long-term network development plans. PSRC also decided to begin a concerted effort to work constructively with utilities through corrective and remedial action plans as opposed to pursuing the strict application of penalties and fines for violations and non-compliance. This marked a fundamental conceptual change in how PSRC interfaced and interacted with utilities, one that was important as the country transitioned to a more competitive energy sector. 
 

At A Glance

Project Dates: 2010-2017 (Closed)

Primary Partners:

Public Service Regulatory Commission

Contact Us About This Project