Building a Sustainable Armenia - A Surge in Renewable Energy

“There is so much sun in this country. Would be a shame to let it all go to waste.” says Ervin, a worker for a solar panel installation company in Armenia, as he installs another panel on the rooftop of a village house.

While a simple remark, it does hold significant weight when putting things into perspective. Armenia is a country rich in molybdenum, copper, gold, lead, silver, and zinc. Minerals such as basalt, granite, limestone and gypsum are also found aplenty. However, there is one thing that Armenia does not have: fossil fuels. Domestic fossil fuels, that is. While the country’s neighbors possess large deposits of fossil fuels, coal reserves, and hydrocarbon deposits, Armenia instead has to import all of the fuel it needs to produce heat, power, and transportation within the country. Recent findings have suggested that Armenia may have some oil reserves in its sovereign territory.

However, the reserves are estimated to be too deep and extracting any oil from them would be commercially devastating to the country’s budget. Most of Armenia’s electrical power comes from the Metsamor Nuclear Power Plant which was instrumental in helping the country walk out of what Armenians refer to as the “cold and dark” post-Soviet years. That being said, the plant is only powered by fuel, which Armenia does not produce and instead imports from Russia along with natural gas. The imported gas is also used to fuel the Hrazdan Thermal Plants and the Yerevan Thermal Plant.

When it comes to non-renewable energy and fossil fuels, the general consensus is the same everywhere you go: they are, well, non-renewable! And at some point, they will run out. Without sounding too dystopian, it is evident that aside from their non-renewable nature, extracting fossil fuels wreaks havoc on the environment. So does mining for metals such as gold and copper. In fact, this is what caused the 2020 Amulsar protests in Armenia.

The Cost of An Increasing Cost

Gas prices have been skyrocketing on a global scale, and Armenia is no exception. In fact, this past year, gas prices went up in the country at the request of Gazprom, Armenia’s Russian gas supplier. Alongside the increasing tariffs of both water and electricity, this has amounted to a higher cost of living and puts a significant strain on industries such as agriculture which are heavily dependent on natural gas. Many greenhouse owners warn that if the spike in gas prices increases, they will have no other options other than closing shop, even though they receive better tariffs compared to ordinary citizens. On top of this, rising gas prices, as well as electricity and water prices, will bear detrimental effects on Armenia’s economy which is slowly climbing up after being weakened over the past two years.

So, one would have the following question:

How can Armenia solve this issue?

And that is where renewable energy comes in.

An Electric Armenia

Just a few years ago, an electric car anywhere in Armenia would stick out like a sore thumb. Nowadays, they are quite common especially in the capital city, Yerevan. You can even spot charging stations and locate them through plug.am. There is a Tesla electric car showroom in Yerevan now, which offers excellent purchase options for various electric vehicles. With a 10% down payment, you can purchase a Tesla and pay the remainder in less than 10 years. The interest rates are also quite affordable for Armenians.

There are currently 7000 electric cars in Armenia, and the government is planning to raise that number to 8000 in 2023. To add a cherry on top, you will be exempt from paying parking fees if you own an electric car in Armenia. Aside from electric cars, Armenia is also full of hybrid vehicles, bicycles, and electric scooters which can be rented through mobile applications and are popular with employees who commute to work. While there is still a long way to go, this is a welcome change in a country where the majority still depend on fossil fuels for driving and transportation.

In terms of renewable electric energy, Armenia has constructed the Sevan-Hrazdan Cascade and the Vorotan Cascade, which include 6 and 3 hydroelectric plants respectively. They are instrumental not just in providing electricity, but also irrigation water.

A Solar Armenia

We began this article with a quote from someone who installs solar panels. Armenia is what we call a “four-season” country. That being said, it benefits from a great deal of solar energy which can be harnessed through solar panels and converted into electricity for home and commercial use. As a result, many are investing in said panels and there is an increasing number of companies which offer such services in Armenia. “There used to be only one or two companies. Now there are many. And that’s amazing, because people are finally realizing the potential of solar energy,” adds Ervin. If you take a trip outside of Yerevan, don’t be surprised to see a lot of village houses with solar panels installed on the roofs.

Geothermal Armenia

We spoke about electric and solar energy. Now let’s turn to geothermal energy, which is found in large quantities in Syunik, the southernmost province of Armenia. While drilling for this type of energy does require some dependence on fuel-powered machinery, actualizing the full potential of geothermal energy could open countless vistas of opportunities. Greenhouses could be operated sans gas, residential buildings could be properly heated, and many other industries could benefit from the end results of tapping into geothermal energy. At the moment, the Karkar Geothermal Power Plant and the Jermaghbyur Geothermal Power Plant are being constructed for this very purpose.

Building a Sustainable Armenia

Even though renewable energy is still taking its baby steps in Armenia, investing in these technologies could make a world of difference. Living costs would go down significantly, allowing more businesses to stay open and prosper. Renewable energy is also of particular importance in Artsakh (Nagorno-Karabagh) where it can be utilized when Azebaijani authorities cut off electricity, gas, and water at their earliest convenience.

By adopting more strict and effective renewable energy policies, Armenia could not only benefit itself, but also become an advocate for these energies around the world, setting an example for others to follow, especially in the Caucasus region.