Armenia permits construction of energy storage systems

The Armenian government has passed legislation allowing the construction of energy storage systems.

The amendment to the country’s Energy Law, which has now passed a second and final reading in parliament, sets out the introduction of energy storage systems subject to licensing.

Speaking to Armenia’s national news agency Armenpress, the country’s Minister of Territorial Administration and Infrastructure, David Khudatyan, explained the license will allow, in accordance with market rules, the right to buy and sell electricity on the wholesale market and to provide storage services to market participants.

The new rules also stipulate that licensing will not be required for the development of energy storage systems when the system is up to 1 MW in capacity, or when the system is above 1 MW but is designed for self-consumption.

Khudatyan added that energy storage facilities will improve the efficiency of Armenia’s power sector.

“Energy storage facilities will allow electricity generated by solar power plants to be supplied on a fixed schedule, which will further support the Armenian economy. We are trying to promote the rapid development of the sector through legislative regulations,” the minister said.

The development follows a sharp rise in Armenia’s renewable energy deployments in recent years, led by solar power. According to government statistics, solar accounted for 16.3% of Armenia’s electricity generation last year.

The country registered a record year for solar deployment in 2025, taking the country past 1 GW of cumulative solar capacity.