Armenia is in the process of defining a national energy saving programme which will determine the main directions for its national energy efficiency policy. This report provides a preliminary review of the policy options that will need to be implemented against a background of growing energy demand and increasing dependence on energy imports.
The priority in the area of energy efficiency is the industrial sector which consumes 40% of all primary energy, with its major target constituents including the power, mining, chemical and construction materials industries.
The second area is the transport sector - it accounts for 24% of all primary energy and consumption is growing by the year. The degree of its adverse impact on the environment and the quantities of emitted hazardous substances and greenhouse gases require important energy efficiency measures.
Third in this list is the residential sector accounting for 15% of total energy consumption. Despite the considerable estimated potential in this sector, the implementation of energy saving measures is constrained by the large amount of required investment and the low average income of the local population.
Accounting for 4% of total energy consumption, agriculture also offers possibilities in the field of energy efficiency. The implementation of measures is constrained by the lack of sufficient funding in rural areas and the absence of highly qualified personnel in the farm produce processing sector.