renewable energy in armenia

38 Pages·2017·4.05 MB·English

by  Tamara Babayan

RENEWABLE ENERGY IN ARMENIA
TAMARA BABAYAN
Sr. Sustainable Energy Expert
Yerevan, November 25, 2017
1
Energy Sector Overview
https://youtu.be/mPkWR4POPIs?list=UUpas9ut74lXp8r0AWFsEQ9Q
2
Electricity Production in
2015
0%
36% 28%
36% 38% 7798 mln kWh
62%
SHPP* LHPP
Hydro Nuclear Thermal Wind Installed capacities as of
2015
0%
35%
54%
3565 MW
11%
Hydro Nuclear Thermal Other
Power Generation
10,000 20%
8,036
8,000 7,433 7,710 7,750 7,798 15%
6,491 14.5%
5,941 5,898 6,114 10%
5,672
6,000
14.5%
8.1% 5%
4,000
3.7% 0%
0.5% 0.6%
2,000 -0.7%
-5%
-4.1%
- -7.2% -10%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Production of electricity, mln kWh Growth rate,%
Output
600 30%
524
500 455 449 443
20%
2328.92%
400
10%
12.8%
300 249
5.5% 0%
200 2.5%
-2.5%
-10%
100
-9.5%
0 -20%
2010 2011 2012 2013 2014 2015
Output, mln USD Real growth rate,%
Electricity Consumption by Customer
Primary Fuel Consumption by Customer
Source: PSRC, “Main Characteristics,” 2008-2012
Heat Consumption by Customer, 2008-
2012
Source: Energy Institute of Armenia Source: Energy Institute of Armenia
5
Gas & Heating Sector Structure
Energy Sector Overview
Heating Fuel Mix in Armenia, 2003-2010
• Residential customers use natural gas
mainly for heating
• The share of the population using natural
gas for heating has increased steadily
since 2003
• Gas is imported from Russia and Iran
• The PSRC regulates the transmission and
distribution of gas in Armenia
Source: R2E2 & EDRC, “Assessment of Heat Supply and Heating Options in
Multi-Apartment Blocks in Armenia,” May 2011
Structure of the Natural Gas Sector in Armenia
Gazprom
Iran
Supply
(Russia)
Public
R
Services e
g
Transmission & u
ArmRosGazProm Regulatory al
Distribution t
Commissio oi
n
n (PSRC)
End-Users Customers
6
Why Renewable
Energy
Transformation of overall economy
Regulatory and institutional framework
No fossil fuel resources, existence of RE resources
High dependence of imported primary energy
sources
7
SWOT for RE Development in
Armenia
✓ Small market
✓ RE resources
✓ Lack of professionals
s
✓ Strong interest of h
t ✓ Lack of concessional
g
private sector n
funding
e
✓ Regulatory r
t
S
framework Weaknesses
✓ Human resources
✓
e ✓ Resource assessment
Threats i
t
in using public funds
u
t s ✓ Sound banking services
r
✓ Technology price o
p ✓ Guaranteed off-take by
✓ Regulatory policy p
O utility for 20 years
changes
✓ Feed in tariff for RET
✓ Fossil fuel price
✓ SREP financing
decrease
✓ Increase in end user tariff
8
Regulatory framework for RE is being continuously improved
➢Tariffs at cost-recovery levels with sound tariff setting
methodology
➢Feed-in tariffs for small hydro, wind, biomass and biogas
➢No license for RET <150 kW capacity, net metering
operation
➢Off-take guarantee of 20 years for RE
➢Escrow account arrangement ensuring that all generators
get paid in full and without delay
➢3-year VAT payment deferral for importers of plant and
equipment with total value of more than $0.5 million, no
custom fee
9
Government Prioritization of Renewable Energy
▪ The Law on Energy (2001, amended 2016)
▪ The Law on Energy Saving and Renewable Energy
(2004, amended 2016)
▪ Energy Sector Development Strategy (2005)
▪ Action Plan of the Ministry of Energy and Natural
Resources (2007)
▪ National Program on Energy Saving and Renewable
Energy (2007)
▪ Hydropower Development Strategy (2011)
▪ National Energy Security Concept (2013)
10