When I was traveling in Armenia this past June, I learned of the Armenian government’s desire to shift their national energy sources to domestic article detailing the struggles between Hawaiian and Californian residents and their utility companies over residential solar panels. It turns out that solar energy does not just face hurdles in the United States but in other countries as well. Let’s take a look at Armenia’s stifled solar industry.
Armenia is a small, landlocked country in the Caucasus region of Eurasia. Armenia’s neighbors include Turkey to the west, Iran to the south, Azerbaijan to the east, and Georgia to the north. Currently, 3.1 million people live in Armenia, mostly in the country’s capital, Yerevan. Armenia was a satellite country of the Soviet Union from the 1920s until the Soviet Union’s collapse in 1991. While Armenia is now technically an independent, democratic nation-state, Russia continues to play a large role in Armenia’s politics, economy, and international relations.1
Armenia’s Current Energy Sources
Armenia does not have domestic sources of oil, coal, or natural gas—collectively referred to as energy , it relies on its neighbors. Armenia imports most of its oil and about two-thirds of its natural gas from Russia. As of 2009, it imports the remaining one-third of its natural gas supply from Iran. ArmRosGazprom owns the natural gas pipeline between Iran and Armenia, which was constructed in 2008. Up until 2013, ArmRosGazprom was a Russian-Armenian collaboration, with 80% of the pipeline owned by Gazprom of Russia and 20% owned by the Armenian government. However, in 2013 the Armenian government decided to cede its 20% stake to Gazprom, thus giving Russia almost full control over Armenia’s energy supply and security.2
Armenia’s complete reliance on imported fuel leaves the population vulnerable to supply cut-offs and price fluctuations. Even Armenia’s domestic sources of nuclear power are mostly owned by Russia. For instance, the United Energy System of Russia owns 90% of Armenia’s largest hydropower plant, the Sevan Hrazdan Cascade plant. Armenia’s one nuclear power plant, Metsamor, was built in 1979 and is also operated by the United Energy System of Russia. In May 2014, Russia agreed to loan Armenia $300 million to upgrade the plant and extend its life until 2026.3
Interest in Solar Power
In 2007, Armenia decided to begin diversifying its energy supply with domestic nuclear and renewable energy sources to make its energy situation more stable.4 Armenia has over 330 sunny days per year, a fact that prompted the Armenian government to look into solar options.5 Additionally, the ultraviolet index in Armenia is similar to that in the Caribbean, meaning the sun’s radiation is very strong.6 In fact, the average annual solar radiation in Armenia is 1,720 kWh/m2, while the average annual European solar radiation is only 1,000 kWh/m2.7 From 2000 to 2001, the government of the Netherlands installed 15 demonstration solar water heaters in Armenia at no charge.8 In terms of heating water in residents, solar water heaters are considered one of the most economical options for Armenia in the future.9
Professor Vahan Hamazaspyan, a scientist, has been developing solar technology in Armenia for the past 20-plus years.10 He has estimated that implementing solar panels will decrease production costs of dried fruit for Armenian farmers. Currently, 10-25% of the production cost of dried fruit is spent on electricity or gas.11 People have taken notice of Hamazaspyan’s solar invention, which he calls “Akhtamar,” most notably Samsung and the Iranian government. Akhtamar is designed for domestic use, specifically for farmers.12
Even though Akhtamar is ready for mass production, Hamazaspyan has not yet received permission from the Armenian government to proceed building a factory to produce the solar product. Hamazaspyan believes that Armenian Prime Minister Hovik Abrahamyan is reluctant to begin building domestic renewable energy sources because of the subsequent diplomatic impact it will have on the countries and companies Armenia currently receives electricity and gas from. However, Hamazaspyan stated, “Iran has a huge potential in agricultural field, and if we are able to cultivate agricultural products by Armenian solar technologies and export it to the Russian, American and European markets, Armenia will profit a lot.”13 Hopefully, in the upcoming years Armenia will be able to forge ahead with domestic renewable energy plans. This will not only stabilize their energy situation but also give the Armenian government more freedom in other decisions, as well.
