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Сегодня:  Воскресенье, 26 Сентября, 2021 года


What will the electricity liberalization bring to Armenia?

10:21, Суббота, 24 Июля, 2021 года
What will the electricity liberalization bring to Armenia?

One of the goals of the Eurasian economic integration is the formation of common energy markets by 2025. The key factor in achieving this is the liberalization of national electricity markets.

This year, the EAEU members will have to develop rules for access to electricity transit, rules for determining and distributing capacity, as well as rules for mutual trade. To launch a common market, each of the participants needs to create wholesale energy markets and separate the production, transmission and sale of electricity

An obstacle to the formation of a common EAEU energy market is the lack of a common agenda for the liberalization of national markets among the member states, which, however, is quite natural, given the fundamentally different structures of the energy balance and market regulation models.

However, some steps are still being taken to form such an agenda. According to the program of the common electricity market, the price of electricity on it will be determined during exchange trading, where it will be possible to submit an application for the purchase and sale of electricity with delivery for a certain period. At the same time, the issue of pricing and payment for electricity in national currencies is currently being discussed in the Eurasian Economic Commission, which fits well into the de-dollarization strategy in mutual settlements in the EAEU countries.

The goal of the program is both to increase the efficiency of the domestic market and to stimulate exports. It is envisaged to create mechanisms for exporting the entire volume of electricity unclaimed on the domestic market. This can lead to the formation of a competitive environment in the domestic market, and can be achieved by creating an institution of traders. They will purchase electricity from producers and sell it to consumers, paying the Electric Networks of Armenia (ENA) CJSC margin for distribution services.

At the same time, in the sphere of distribution, the ENA monopoly will be preserved. It is assumed that this will not lead to an increase in domestic tariffs, since the company will actually be freed from supply costs. Distribution costs will be borne by the ESA and the cost of supply will be borne by the traders themselves. The program provides for the creation of a market operator that will act as the main institution responsible for electricity trading. Within the framework of the new model, it is planned to form an electronic exchange, where it will be possible to purchase electricity at a free price.

It is expected that the liberalization of the electricity market will allow for a socially oriented tariff policy through the introduction of night and day tariffs.

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