Armenia Opens Its Energy Storage Market. Energy Law Amendment Adopted
Armenia Adopts Landmark Energy Law Allowing Energy Storage Development for the First Time
The Armenian parliament has adopted, in its second and final reading, the most significant amendments to the country’s energy legislation to date. For the first time in Armenia’s history, the new rules formally enable the construction and operation of energy storage systems. The reforms aim to structure the market and facilitate the integration of a growing share of renewable energy sources into the national power system.
New Licensing and Market Participation Rules
According to the Minister of Territorial Administration and Infrastructure, David Khudatyan, the new regulations introduce a licensing requirement for commercial operators of energy storage systems. Holding a license will allow companies to actively participate in the wholesale electricity market, including buying and selling electricity and providing storage services to other market participants in accordance with established rules.
However, lawmakers have also introduced important exemptions. Licensing will not be required in two cases:
- for installations with a capacity below 1 MW
- for systems above 1 MW that are used exclusively for self-consumption (including prosumer and industrial behind-the-meter applications)
Response to Rapid Solar Growth
The decision to introduce energy storage regulations is directly linked to Armenia’s rapid expansion in solar power. The year 2025 marked a record period for new solar installations, pushing cumulative photovoltaic capacity above 1 GW for the first time.
In the previous year, solar energy accounted for 16.3% of the country’s total electricity generation.
Strengthening Grid Stability
The government expects that energy storage systems will help stabilize electricity supply from solar power plants by enabling more consistent delivery schedules. This is intended not only to improve the efficiency of the energy sector, but also to enhance the resilience of the Armenian economy through better management of daytime energy surpluses generated by solar installations.