Renewable Energy

Wind Energy Programs in Armenia

In 2003, the Wind Energy Resource Atlas of Armenia was drawn. According to it, economically reasonable wind power potential is estimated at 450 MW total installed capacity and at electric power output of 1.26 billion kWh/y. The main promising locations are the Zod (Sotk) Pass, Bazum Range, Pushkin and Karakhach Passes, Jajur Pass, Geghama Range, Sevan Pass, Aparan Region, Sisian-Goris Hills and Meghri Area.

In December 2005, for the first time in Armenia and in the Caucasus a grid-connected wind-power plant with capacity of 2.6 MW was put into operation at Pushkin Pass. In the future an increase of the wind power plant capacity up to 50 MW is planned.

Within the framework of the "The support of Armenia's energy policy" TACIS program implemented by the European Union a monitoring in the Semenovka Pass in Sevan region was organized and a preliminary feasibility study (FS) for the construction of a wind power plant with a total installed capacity of 35 MW was compiled.

As a part of the wind energy program of the Armenian - Italian private company “Ar Energy”, a monitoring was completed in the Karakhach Pass of the Shirak region. The company received a license from the Public Services Regulatory Commission of the Republic of Armenia for the construction of the wind power plant “Karakhach-1” with a total installed capacity of 20 MW. In the future an increase of the capacity of the wind power plant up to 140 MW is planned.

The company "Zod Wind" completed the monitoring within the framework of wind energy program near the Zod Pass in Gegharkunik region.

“Ar Energy” and “Zod Wind” are negotiating with various companies to attract investments for the construction of “Karakhach-1” and “Zod” wind energy power plants.

As for legislation the Republic of Armenia has created numerous mechanisms in order to promote the use of renewable energy sources, for example:

According to the article 59 of the “Law on Energy” of RA, accepted on 7 March 2001, the electricity generated by SHPP during a period of 15 years and plants using other renewable energy sources (wind, solar, biomass and geothermal) is subject to compulsory purchase in 20 years at fixed rates.  

By the decision N 207-N of the Public Services Regulatory Commission adopted on May 4, 2007 the procedure for determining the electricity tariff produced by the power plants via the use of the renewable energy sources was approved. According to it, the tariff for the wind energy is set on an annual basis, which for 2015 amounted 42.426 ARMD / kWh without VAT ($ 0.08 / kWh).

In accordance with the abovementioned procedure, in the end of every year the tariff for the wind energy is indexed due to the fluctuations in the national currency of Armenia against the USD for a certain period of time (January-September) and due to the changes of consumer prices in the Republic of Armenia.

A proposal has already been sent to the Public Services Regulatory Commission, on behalf of the Ministry of Energy and Natural Resources for taking into consideration the possibility of tariff revision and its indexation twice a year due to the fluctuations of RA national currency against the foreign currency for the entire indexed period.