Administration, government legislation, and policy of the sector is conducted by the Ministry of Energy Infrastructures and Natural Resources of Armenia.

[10][11][12][13] Armenia is a net-producer of electricity and has exported in excess of 1.3 billion kWh per year since 2014[14][15][16] to Iran, Georgia, and Artsakh.

[27][28][29] According to International Energy Agency in 2015 electricity generation in Armenia increased since 2009 to nearly 8000 GWh, but still remains below 1990 levels.

However, after the Spitak earthquake in 1988, the nuclear power plant's operation was forced to stop,[34] becoming one of the causes of the Armenian energy crisis of 1990's.

While Armenia is the sole owner of the plant, the Russian company United Energy Systems (UES) manages the Metsamor NPP.

[35] Armenia also explores the possibilities of small modular reactor that would give flexibility and the opportunity to build a new nuclear power plant in a short time.

The Armenian energy minister has announced that a US$2 billion feasibility study of a new 1,000 MWe nuclear power plant is to be carried out in cooperation with Russia, the United States and the IAEA.

[citation needed] Armenia signed a cooperation agreement with the European Organization for Nuclear Research in March 1994.

During 2010–2017 thermal power plants (running on imported natural gas from Russia and Iran) provided about one-third of Armenia's electricity.

[44] With a capacity of 242 megawatts, its gas-powered turbine will be able to generate approximately one-quarter of Armenia's current (as of 2010) electricity output.

[44] The state-of-the-art plant was built in Yerevan in place of an obsolete facility with a $247 million loan provided by the Japanese government through the Japan Bank of International Cooperation (JBIC).

[44] Armenia's energy sector will expand further after the ongoing construction of the Hrazdan thermal plant's new and even more powerful Fifth Unit.

[44] The new Yerevan and Hrazdan TPP facilities will pave the way for large-scale Armenian imports of natural gas from neighboring Iran through a pipeline constructed in late 2008.

[48] In late December 2010, the Armenian Energy Ministry announced that the fifth block of the Hrazdan thermal power plant will go online by April 2011.

[48] From the 1960s, the USSR carried out an electricity generation plan with the intention of constructing thermal power plants in the southern regions of Armenia where fossil fuel energy resources were restricted.

[49] The main source of energy for these power plants was natural gas which was delivered through pipelines running from Turkmenistan through Azerbaijan.

[53] For its power production, it uses natural gas supplied from Iran and exchanges it with the electricity produced by the plant, while using the surplus energy for domestic consumption.

[54] On November 29, 2021 a new combined heat and gas power plant with installed capacity of 250 MW was launched in Yerevan.

As of 1 January 2018, and according to the provided licenses, 36 additional SHPPs are under construction, with about total projected 69 MW capacity and 250 million kW*h electricity annual supply.

[69] One of the well-known utilization examples is the American University of Armenia (AUA) which uses it not only for electricity generation, but also for water heating.

[79] According to Armstat total final consumption of electric energy in 2016 amounted to 458.2 ktoe and was broken down as presented on the graph to the right.

[91][obsolete source] A World Bank survey from 2013 reveals companies would experience a power outage only about 4 times a year (at par with countries like Hungary and Latvia).

[25][26] In February 2018 Armenian parliament adopted a set of amendments and additions to the Law on Energy and a number of related laws, designed to liberalize the national energy or a class thereof in Gegharkunik in Gegharkunik (in construction, commissioning projected in 2024) in Aragatsotn market, specify the functions of responsible government agencies and those of the regulator and protect the interests of consumers.

[105] In the reports[106] published by Electricity Networks of Armenia can be seen, that Yerevan Thermal Power Plant, which is modernized with a funding from Japan and European technologies,[107] is much more energy-efficient than old Thermal Power Plant in Hrazdan[108] and sells electricity to the grid at twice as lower price (15.5 AMD vs. 25 / 31 AMD) is not utilized to its full capacity.

[113] Bills can be paid at physical locations such as Haypost[124] (the Armenian post office), banks,[125][126] payment terminals,[127][128] and electronically via mobile apps, SMS,[129][130] and via the Internet.

[133][134][135] There are numerous investment opportunities in the sector as Armenia has significant potential for electricity production from renewable energy sources such as hydropower, wind, solar, geothermal, and biogas.

[140] In May 2018 deputy minister of energy infrastructure and natural resources mentioned that the electricity market liberalization process began and a local production of solar panels kicked off.

4 systemic solar stations are connected to the network, 7 are in the construction phase with completion planned within this year with the total capacity is 10 MW.

In April 2019 it was announced that German company Das Enteria Solarkraftwerk will build a 2 MW strong solar station near Shorzha at lake Sevan by end of 2020.

[citation needed] In 2012, US$1.82 million was invested by International Bank of Reconstruction and Development in an energy saving program.