Balabanyan, AniKochnakyan, ArturSargsyan, GevorgHankinson, DenzelPierce, Lauren2017-06-272017-06-272011-10978-9939-831-18-3https://hdl.handle.net/10986/27410More than a decade of ambitious sector reform has led to a period of stability in the Armenian energy sector. The sector faces challenges more typical of a developed economy than an emerging one: policymakers' concerns have shifted from avoiding total system collapse to optimizing the energy supply mix to provide affordable, reliable, and sustainable energy services. However, some old challenges remain and new ones have arisen. Armenia is still vulnerable to energy supply disruptions; tariffs lag the full cost of service provision; and a significant investment backlog impedes progress in energy infrastructure. The purpose of this note is to present the analysis of the challenges facing Armenia's energy sector, specifically, its electricity, natural gas, and heating subsectors. The intention of the note is not to prescribe solutions, but to present analysis of options and tradeoffs that the Government can use to inform its decision-making. Armenia's energy sector has undergone a series of reforms over the last fifteen years, which included privatization of the electricity distribution and gas companies, and some generating companies, establishment of an independent regulator, and development of a formal strategic plan for the sector. This energy sector overview highlights important outcomes from reforms and describes key sector characteristics.en-USCC BY 3.0 IGOACCESS TO ENERGYAPPROACHAVAILABILITYAVERAGE COSTSBALANCEBANKRUPTCYBENCHMARKBOILERBURNING GASCAPACITY FACTORCAPACITY FACTORSCAPACITY UTILIZATIONCAPITAL COSTSCHEMICAL PLANTCIRCUIT BREAKERSCONSUMERSCONSUMPTION LEVELSCONVERSION EFFICIENCYCOST ASSUMPTIONSCOST OF ELECTRICITYCOST OF NEW GENERATING CAPACITYDEBTDEMAND FOR ELECTRICITYDEMAND GROWTHDEVELOPMENT STRATEGYDISTRIBUTION COMPANYDISTRIBUTION LOSSESDISTRIBUTION NETWORKDISTRICT HEATINGDISTRICT HEATING SYSTEMSDIVIDENDSDOMESTIC USEECONOMIC COOPERATIONECONOMIC JUSTIFICATIONECONOMIC OUTLOOKECONOMIC RESEARCHEFFICIENCY IMPROVEMENTSELASTICITYELASTICITY OF DEMANDELECTRICAL GRIDELECTRICITYELECTRICITY COMPANYELECTRICITY CONSUMPTIONELECTRICITY CONSUMPTION GROWTHELECTRICITY CRISISELECTRICITY DEMANDELECTRICITY DISTRIBUTIONELECTRICITY DISTRIBUTION COMPANYELECTRICITY GENERATINGELECTRICITY GENERATIONELECTRICITY PRICESELECTRICITY PRODUCERSELECTRICITY SALESELECTRICITY SECTORELECTRICITY SUPPLYELECTRICITY SYSTEMELECTRICITY SYSTEMSELECTRICITY TARIFFSELECTRICITY TRANSMISSIONEND-USEEND-USERSENERGY BILLSENERGY CONSUMPTIONENERGY COSTSENERGY CRISISENERGY EFFICIENCYENERGY EFFICIENCY INVESTMENTSENERGY EFFICIENCY MEASURESENERGY INFRASTRUCTUREENERGY MARKETSENERGY NEEDSENERGY SAVINGSENERGY SECTORENERGY SECURITYENERGY SERVICEENERGY SUPPLIERSENERGY SUPPLYENERGY SYSTEMENERGY SYSTEMSEXPORTSFINANCIAL CRISISFIXED COSTSFORECASTSFUELFUEL COSTSFUEL PRICESFUEL SUPPLYFUEL TYPEFUELSGAS COMPANIESGAS COMPANYGAS CONSUMPTIONGAS COSTSGAS HEATINGGAS PIPELINEGAS PIPELINESGAS PLANTGAS PLANTSGAS PRICEGAS PRICESGAS RESERVESGAS RESOURCESGAS SECTORGAS SERVICEGAS SUPPLYGAS TRANSMISSIONGAS TURBINEGAS UNITSGAS-FIRED GENERATORSGASIFICATIONGDPGENERATING CAPACITYGENERATIONGENERATION CAPACITYGENERATION OF ELECTRICITYGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTHEATHEAT SUPPLYHEAVY RELIANCEHIGH VOLTAGE CUSTOMERSHIGH VOLTAGE NETWORKHIGHER ENERGY PRICESHIGHER GASHYDRO PLANTHYDRO POWERHYDROCARBONSHYDROELECTRIC PLANTSHYDROPOWERHYDROPOWER PLANTIMPROVING ENERGY EFFICIENCYINCOMEINCOME ELASTICITY OF DEMANDINDEPENDENT REGULATORINEFFICIENCYINTEREST RATEKILOWATT HOURKILOWATT-HOURKILOWATT-HOURSLEGAL FOUNDATIONLEGAL STATUSLIVING SPACELOAD FACTORLOW-INCOME CUSTOMERSReportWorld Bankhttps://doi.org/10.1596/978-9939-831-18-3