Thursday, December 15 2022 15:03

Artsakh`s energy security: Post-war challenges and opportunities 

Artsakh`s energy security: Post-war challenges and opportunities 

ArmInfo.Energy security is a cornerstone of the Republic of Artsakh’s (Nagorno-Karabakh Republic) economy, given that it is important for powering economic activity, safety and societal development, and enabling human security of its citizens.

The 2020 Nagorno-Karabakh War, also known as the 44-day war, exacerbated and created challenges to achieving energy security in Artsakh. It is reported that the war significantly hindered potential for development of Artsakh and damaged or destroyed energy infrastructure, primarily hydroelectric power plants. Due to the new energy risks and the importance of Artsakh’s energy security for its economy and sovereignty, raising awareness on the current and future state of Artsakh’s energy system is crucial and time sensitive. In addition, the availability of public information of Artsakh’s energy systems is very limited, especially from Armenian institutions and perspectives. Due to the lack of information currently available, this article will aim to uncover the baseline and outlook of Artsakh’s energy security and its relationship with human security.

Electricity transmission. Before the 2020 war, Artsakh’s national energy policy was aimed at modernizing the entire energy infrastructure of Artsakh. As a priority for improving the reliability of the energy system, the transition to a ring power supply scheme was considered, a scheme where two sources of electricity serve the demand of consumers, thus increasing the reliability of the power supply of the system. Electrical installations with a ring power supply are used in urban power networks, mainly in high-voltage underground cable channels for public use. One overhead high-voltage line existed that spanned from Syunik to Kashatagh. The plan was to build a second line, the Arajazor-Karvachar-Zod, which would link Artsakh with Armenia.

The electricity transmission lines connecting Artsakh and Armenia pass through Lachin, which, according to the 3-party statement on the cessation of hostilities of November 10, 2020, was passed to Azerbaijan. This circumstance creates serious risks for the energy security of Artsakh and dictates the need to find new ways to connect the power lines from Artsakh to Armenia.  

Before the war, the Martuni province of Artsakh was supplied with electricity through the Shushi-Karmir Shuka-Martuni power transmission line. After the war, a significant part of this line fell under the control of Azerbaijan. To solve this problem, a 41 km high-voltage power line (Stepanakert-Martuni) was built, with a capacity of 10 MW. Currently, the Martuni province consumes up to 3 MW. It is important to note that the constructed line will also connect to the Karmir Shuka substation, and 443 support poles have already been built to support these transmission lines. The work was carried out by the "Artsakhenergo" company, and cost about 1.5 billion AMD.

Hydropower energy. Prior to the 2020 war, Artsakh’s energy goals included increasing energy security within its borders and promoting energy independence. Artsakh has an abundance of water resources and had over 30 hydropower plants built and more planned to meet energy needs (Figure 1). The “Water Legislation,” (2007) a basic law for the implementation of state policy, was adopted in Artsakh to regulate and control the water sector. The “Water Legislation” also defines the fundamental principles and rules for the use of water resources. The total potential of Artsakh’s energy before the 2020 war, according to the plans of the “Water Legislation,” made it a possibility to generate up to 700 million kWh of electricity, which was almost twice as much as domestic needs, creating ample opportunities for export and thus economic benefits for Artsakh.

[1] This research was made possible by a grant from the USC Institute of Armenian Studies.

 

Fig. 1. Artsakh’s major rivers and HPP locations

After the 2020 war, only 5 HPPs remain in Artsakh HPP – Sarsang and four HPPs on Trgi cascade. The total capacity of these five HPPs is 79.5 MW. Sarsang HPP has the largest capacity among them (50 MW). As a result of the war in 2020, the Mataghis-1 (4.8 MW) and Matagis-2 (3 MW) HPPs, which were part of the ''Artsakh HPP'', were passed into the possession of Azerbaijan. Azerbaijan also occupied the Charhek HPP, Karvachar HPP, Lev-1 HPP, Zangezur HPP, Mrav HPP, among others.   

Wind energy. While there are currently no wind turbines producing electricity in Artsakh, limited data is available on the potential of wind energy. Wind speed, along with height of installed wind turbines, is a primary input for estimating potential electricity production, in the former and current boundaries of Artsakh. After the 2020 war, the Azerbaijani government publicized plans to explore the potential of wind energy development in the occupied territories, citing that potential that reaches 2,000 MW. The Shahumyan province has the greatest potential for wind energy, followed by Kashatagh and Martakert provinces (Table 2; Figure 2). Unfortunately, Shahumyan and Kashatagh provinces have been completely occupied by Azerbaijan which had the highest wind energy potential for Artsakh. However, there are still some regions in present-day Artsakh that could be prioritized and good candidates for building wind energy.  

Solar energy. Although there are no utility-scale solar photovoltaic (PV) plants in Artsakh, similar to wind energy, there is considerable potential for using solar energy for heating water and electricity in Artsakh, via solar water heaters and solar PV plants, respectively. Due to its geographic location and elevation, Artsakh has considerable solar resources. For example, data shows that Stepanakert has a global horizontal radiation (GHI) value of 4.04 Kilowatt-hours (kWh)/m2/day per year, which is a primary input into estimating solar PV electricity generation. This is higher than in most parts of continental Europe. The Azerbaijani government has published data claiming that occupied areas in Artsakh have a potential of 2,000 MW. This potential has been recognized by Artsakh’s government in the past and already utilized by energy companies and non-governmental organizations in solar energy installation projects. Kashatagh has the highest solar PV production potential, followed by Shahumyan and Hadrut (Table 3; Figure 3). All three of these provinces have been occupied by Azerbaijan. However, parts of the other four provinces that Artsakh still has partial control of have adequate potential for solar PV production, particularly Shushi and Martuni.

Energy and the economy. Before the 2020 war, the energy system of Artsakh was a cornerstone of the economy, allowing Artsakh’s development to accelerate. In July 2014, the Russian television channel RBC described Artsakh as a “Transcaucasian tiger,” alluding to its rapid economic growth.  From 2015 up until 2021, Artsakh’s economy was growing (2016: +9.7%, 2017: +18.5%, 2018:+14.0% , 2019: +10.4%), largely due to the construction of energy infrastructure and the growth of energy consumption. In 2020, the economic decline in Artsakh amounted to -20.9%, followed by -7.9% in 2021.  

Artsakh's energy security: Post-war. As a result of the 2020 war, the energy system of Artsakh has become uncertain and has experienced many negative consequences. Today, systematic and large-scale work is required to restore stable energy supplies. As of November 16, 2020, the supply of electricity was suspended in the Martuni region (Chartar, Sos, Machkalashen, Qarahunj, Qert, Kolkhozashen, Kavakhan, Msmna, Kherkhan, Tsovategh, Kherkher, Karmir Shuka, Tagavard, Kaler, Skhtorashen villages) and the Askeran district (Sznek, Mkhitarashen, Khachmach, Karmir Gyugh villages). By November 22, 2020, the supply was restored to Berdashen, Ashan, Norshen, Emishchan, Khatsi, Gishi, Spitakashen, Mushkapat, Khagorti, Kagartsi, and Paraatumb villages. 

Due to restoration work, the supply of electricity is periodically interrupted and not always reliable. In order to overcome the energy crisis in Artsakh, it is necessary to implement programs for the development of renewable energy. It is estimated that the construction of a 1000 kW solar PV plant will make it possible to produce more than 1.5 billion kWh of electricity annually, while causing less impact to the environment compared to other sources of energy. Electricity produced by solar PV significantly displaces electricity otherwise produced by fossil fuels and other resources that have greater life cycle emissions, including combustion and transportation of carbon-intensive fuels transportation. It is estimated that the solar power plant can reduce carbon dioxide emissions by 724 tons. In order to build solar energy, capital investments are estimated at 300 million AMD. Modeled in HOMER software, such a solar PV plant using generic solar PV panels installed in Stepanakert would have an average daily output of 3,691 kWh/day.

Since Artsakh will receive natural gas from Armenia, it is expected that the commissioning of such a solar PV plant would reduce demand for electricity production at the Yerevan TPP. At the same time, studies show that when such an amount of gas fuel is burned at the Yerevan TPP, it leads to the emission of greenhouse gasses and other pollutants into the atmosphere, including 2 kg of sulfur and 1,880 kg of nitrogen oxide. Sulfur and nitrogen oxide contribute to air pollution and acid rain, which is harmful to human health and the natural environment.  

The war has also impacted the supply of natural gas in Artsakh. Artsakh has been involved in the natural gas industry for over five decades. In 1960, Stepanakert was a supplier of liquid gas and over the decade developed a larger liquid gas industry. Further, in 1976, Artsakh began large-scale gasification with natural gas. In 1992, due to hostilities with Azerbaijan, gas supply was completely suspended in Artsakh, leaving more than 80% of gas distribution stations in an emergency state. A year later Artsakh resumed supplying gas, but it required a considerable amount of effort to determine which entity within Artsakh would take over responsibility for the gas transportation system.

Before the 44-day war, the ''Artsakhgaz'' company operated 7 production and operational sites in Stepanakert, Shushi, Martakert, Martuni, Hadrut, Tog, and Khachen, meeting 67.1% of Artsakh’s gas demand (93% of cities and 43.1% of villages). The remainder of the supply was imported from Armenia. In the post-war period, although current gasification data are not available, natural gas tariffs in Artsakh increased as a new rate was negotiated. On average, natural gas tariffs in Armenia were increased by 4.7 drams in April 2022. Due to the increase in tariffs and reliability on Armenia’s supply, additional risks for social stability and accessibility were created after the war.

After the 44-day war, risks and accidents during gas transportation have also increased. On the night of March 8, 2022, due to an accident at the Shushi-Lisagor-Berdzor pipeline in the Shushi region (under the control of Azerbaijan), the gas supply to Artsakh from Armenia was stopped. Azerbaijan hindered the implementation of repair work on the gas pipeline after the accident and in fact the accident was associated with intensive shelling by the Azerbaijani Armed Forces at the Khramort, Parukh and Khnapat settlements of the Askeran region of Artsakh. Initially, Azerbaijan did not allow Armenia, Artsakh, or Russian peacemaker authorities to approach the gas pipeline to restore it. However, as a result of negotiations with the assistance of the Armenian government and Russian peacekeepers, Azerbaijan restored the damaged pipeline. However, since March 21, due to the intervention of Azerbaijan, gas has not been supplied to Artsakh again. The Artsakh government stated that there is sufficient evidence to prove that Azerbaijan installed a control valve in the pipeline causing the gas supply to stop. As hostilities and land acquisition by Azerbaijan continues, the risk of similar accidents related to energy supply continue to be a serious issue. 

Due to suspending the gas supply, Artsakh’s residents’ basic rights have been violated. The European Union was one of the first to react to this violation, expressing concern about the suspension of gas supplies to Artsakh, calling on Azerbaijan to restore supply. The accident in Artsakh in March 2022 can be described as a humanitarian catastrophe, as the lack of gas supplies and problems with the supply of electricity has left the population of Artsakh in an extremely difficult condition, particularly during cold winter months. Since Artsakh is not globally recognized, receiving aid and diplomatic discussions remain particularly difficult. Some international laws such as the Declaration of Social Progress and Development (1969), International Covenant on Economic, Social and Cultural Rights (1966), Universal Declaration on the Elimination of Hunger and Malnutrition (1973), among others should be considered as avenues for addressing these human rights violations.

 

Vahe Davtyan – Doctor of Political Sciences, Professor at Russian-Armenian University (Armenia)

Natalie Shahbol - Master of Environmental Science and Management (USA)

Mikael Matossian - Master of Energy Science, Technology & Policy (USA)

Haig Minasian - Master of Science, Geographic Information Science and Cartography (USA)     

This research was made possible by a grant from the USC Institute of Armenian Studies.

 

 

 

 

POST A COMMENT
Input digits     

News
Yerevan`s fountains will cease operating on November 1Yerevan`s fountains will cease operating on November 1
ANC: One of the problems of modern Armenia is that the authorities have chosen an unwise policy of constant concessionsANC: One of the problems of modern Armenia is that the authorities have chosen an unwise policy of constant concessions
The GOALS Girls Summit 2026 was held in YerevanThe GOALS Girls Summit 2026 was held in Yerevan
Pashinyan: Khash season is openPashinyan: Khash season is open
The Foreign Ministers of Armenia and Lebanon discussed the further development of their partnershipThe Foreign Ministers of Armenia and Lebanon discussed the further development of their partnership
The head of the RA Ministry of Foreign Affairs is participating in the Manama Dialogue conferenceThe head of the RA Ministry of Foreign Affairs is participating in the Manama Dialogue conference
Ecuador will take over from ArmeniaEcuador will take over from Armenia
Issues related to the adoption of documents in the field of migration and crime prevention were discussed in ArmeniaIssues related to the adoption of documents in the field of migration and crime prevention were discussed in Armenia
The Armenian Ministry of Internal Affairs warns of a new type of fraud via the social network TikTokThe Armenian Ministry of Internal Affairs warns of a new type of fraud via the social network TikTok
Head of MoESCS: the statutes of scientific institutes have already been approved, while the formation of governing boards is a priority taskHead of MoESCS: the statutes of scientific institutes have already been approved, while the formation of governing boards is a priority task
Moscow explained the risks Armenia faces by cutting ties with RussiaMoscow explained the risks Armenia faces by cutting ties with Russia
New rules for obtaining residence permits will come into effect in Armenia on November 1New rules for obtaining residence permits will come into effect in Armenia on November 1
Armenia is among 29 countries in which Russia plans to open information and consulting centers, according to the Russian Foreign MinistryArmenia is among 29 countries in which Russia plans to open information and consulting centers, according to the Russian Foreign Ministry
Armenian rescuers pumped out 27 tons of waterArmenian rescuers pumped out 27 tons of water
The opening ceremony of the HayPassl office, designed to issue new biometric documents, took place in YerevanThe opening ceremony of the HayPassl office, designed to issue new biometric documents, took place in Yerevan
The Central Election Commission of Armenia has assigned serial numbers to parties and party blocs participating in the local government elections on November 29The Central Election Commission of Armenia has assigned serial numbers to parties and party blocs participating in the local government elections on November 29
Temperatures are expected to rise in ArmeniaTemperatures are expected to rise in Armenia
Political scientist: Pashinyan`s statements about the adoption of a new Constitution of Armenia indicate that the Armenian Prime Minister has found himself in a multi-layered political impassePolitical scientist: Pashinyan`s statements about the adoption of a new Constitution of Armenia indicate that the Armenian Prime Minister has found himself in a multi-layered political impasse
Armenia`s Ombudsman responded to the Shirak region governor`s statements without pointing fingers.Armenia`s Ombudsman responded to the Shirak region governor`s statements without pointing fingers.
Artsvik Minasyan elected as a member of the Competition and Consumer Protection CommissionArtsvik Minasyan elected as a member of the Competition and Consumer Protection Commission
IDBank Supports the Reconstruction of the Spandaryan Canal: Commemorative Plaque Dedicated to the Project SignedIDBank Supports the Reconstruction of the Spandaryan Canal: Commemorative Plaque Dedicated to the Project Signed
IDBank and Idram Presented Several Environmental Initiatives at COP17IDBank and Idram Presented Several Environmental Initiatives at COP17
Representatives of the Strong Armenia faction discussed the domestic political situation in the country with the Canadian Ambassador.Representatives of the Strong Armenia faction discussed the domestic political situation in the country with the Canadian Ambassador.
Heritage on the brawl in the Armenian parliament: The Armenian government`s political arsenal is practically exhaustedHeritage on the brawl in the Armenian parliament: The Armenian government`s political arsenal is practically exhausted
Pashinyan discussed youth involvement in public administration.Pashinyan discussed youth involvement in public administration.
The Foreign Ministries of Armenia and India held political consultationsThe Foreign Ministries of Armenia and India held political consultations
Alen Simonyan will travel to Moscow to attend a meeting of CIS Security Council Secretaries.Alen Simonyan will travel to Moscow to attend a meeting of CIS Security Council Secretaries.
Opposition factions in the Armenian parliament have nominated a former member of the National Assembly for the position of member of the Competition and Consumer Protection Commission.Opposition factions in the Armenian parliament have nominated a former member of the National Assembly for the position of member of the Competition and Consumer Protection Commission.
Anna Grigoryan: The authorities` proposal to join the process of adopting a new Constitution is unacceptable for the opposition Anna Grigoryan: The authorities` proposal to join the process of adopting a new Constitution is unacceptable for the opposition "Armenia" faction
The Speaker of the Armenian Parliament: If the opposition is convinced that the Armenian people are against the new Constitution, let them put the issue to a referendum.The Speaker of the Armenian Parliament: If the opposition is convinced that the Armenian people are against the new Constitution, let them put the issue to a referendum.
“Strong Armenia”: Azerbaijan cannot be a guarantor of peace for Armenia“Strong Armenia”: Azerbaijan cannot be a guarantor of peace for Armenia
Armenia and Slovenia discussed opportunities for the consistent development of relationsArmenia and Slovenia discussed opportunities for the consistent development of relations
Regular Yerevan-Sofia-Yerevan flights will begin on November 7, 2026 – Bulgarian EmbassyRegular Yerevan-Sofia-Yerevan flights will begin on November 7, 2026 – Bulgarian Embassy
The Supreme Judicial Council will consider the issue of disciplinary action against the judge who recused himself in the case of the Catholicos of All Armenians.The Supreme Judicial Council will consider the issue of disciplinary action against the judge who recused himself in the case of the Catholicos of All Armenians.
The Deputy Foreign Minister of Armenia held discussions with the Coordinator of OSCE Economic and Environmental ActivitiesThe Deputy Foreign Minister of Armenia held discussions with the Coordinator of OSCE Economic and Environmental Activities
The lawyers for the former head of the State Revenue Committee: Gagik Khachatryan needs urgent hospitalization, but remains under arrest.The lawyers for the former head of the State Revenue Committee: Gagik Khachatryan needs urgent hospitalization, but remains under arrest.
An oncologist from Armenia has announced his candidacy for the post of WHO Director-GeneralAn oncologist from Armenia has announced his candidacy for the post of WHO Director-General
Deputy Prime Minister: The process of visa liberalization is an important area for expanding contacts, mobility, and ties between Armenian citizens and EU countriesDeputy Prime Minister: The process of visa liberalization is an important area for expanding contacts, mobility, and ties between Armenian citizens and EU countries
Ten people have been detained in connection with a criminal case initiated by the Anti-Corruption Committee of the Republic of Armenia on cases of bribery and bribery.Ten people have been detained in connection with a criminal case initiated by the Anti-Corruption Committee of the Republic of Armenia on cases of bribery and bribery.
Specially protected natural areas, including green zones, cannot be privately owned, says the Prosecutor GeneralSpecially protected natural areas, including green zones, cannot be privately owned, says the Prosecutor General
Discussions on the candidacy of a member of the Commission for the Protection of Competition and Consumer Interests began at a plenary session of the Armenian Parliament.Discussions on the candidacy of a member of the Commission for the Protection of Competition and Consumer Interests began at a plenary session of the Armenian Parliament.
ARFD Delegation Discussed Prospects for Bilateral Cooperation in Russia’s State DumaARFD Delegation Discussed Prospects for Bilateral Cooperation in Russia’s State Duma
«Here’s the screenshot, the money has been transferred»: IDBank warns of fake payment scams«Here’s the screenshot, the money has been transferred»: IDBank warns of fake payment scams
A magnitude 2.6 earthquake struck ArmeniaA magnitude 2.6 earthquake struck Armenia
The Working Visit of the President of Turkmenistan to the Republic of Turkiye Has BegunThe Working Visit of the President of Turkmenistan to the Republic of Turkiye Has Begun
An attempt to smuggle an undeclared shipment of gold was prevented at the Georgian-Armenian border.An attempt to smuggle an undeclared shipment of gold was prevented at the Georgian-Armenian border.
Issues of the pastoral and national mission of the Armenian Apostolic Church were discussed in YerevanIssues of the pastoral and national mission of the Armenian Apostolic Church were discussed in Yerevan
A conference dedicated to the 150th anniversary of Hrachya Acharyan`s birth was held at UNESCO headquarters in Paris.A conference dedicated to the 150th anniversary of Hrachya Acharyan`s birth was held at UNESCO headquarters in Paris.
Criminal police officers discovered a large shipment of drugs – the Ministry of Internal AffairsCriminal police officers discovered a large shipment of drugs – the Ministry of Internal Affairs
Digital Architecture for a Sustainable Future: IDBank`s Article in Regional Post Magazine                Digital Architecture for a Sustainable Future: IDBank`s Article in Regional Post Magazine            
First Steps in Your Career with IDBank: 16th Cycle of IDream LaunchedFirst Steps in Your Career with IDBank: 16th Cycle of IDream Launched
Rate.Trading. New Digital Culture of Currency ExchangeRate.Trading. New Digital Culture of Currency Exchange
The National Assembly of Armenia will hold an extraordinary session on the evening of October 29.The National Assembly of Armenia will hold an extraordinary session on the evening of October 29.
An Armenian version of the American drama An Armenian version of the American drama "Closer" will be filmed in Yerevan.
Human rights activist: Human rights activist: "Protecting the rights of the people of Artsakh is a matter of the rights of all Armenians."
Former Justice Minister: Instead of removing Pashinyan, Armenia`s opposition is teaching the public to be content with responses to the government`s actions.Former Justice Minister: Instead of removing Pashinyan, Armenia`s opposition is teaching the public to be content with responses to the government`s actions.
Azimuth Airlines is preparing a backup aircraft after the Yerevan-Mineralnye Vody flight returned to its departure airport due to a technical issue.Azimuth Airlines is preparing a backup aircraft after the Yerevan-Mineralnye Vody flight returned to its departure airport due to a technical issue.
One person died and another was hospitalized in a collapse at a sewer line site, according to Yerevan City Hall.One person died and another was hospitalized in a collapse at a sewer line site, according to Yerevan City Hall.
A member of the Artsakh Public Council: COP17 was supposed to be a platform for raising the legal issues of Artsakh residents.A member of the Artsakh Public Council: COP17 was supposed to be a platform for raising the legal issues of Artsakh residents.
ANC Deputy Chairman: Pashinyan, seeing that the opposition is adamant on advancing Aliyev`s constitution, decided to break them with brute force.ANC Deputy Chairman: Pashinyan, seeing that the opposition is adamant on advancing Aliyev`s constitution, decided to break them with brute force.
Read more



Commented
"Strong Armenia": The brawl in parliament was staged to distract public attention from Pashinyan`s failed foreign policy
Zakharova commented on the scandalous epithets of the governor of Armenia`s Shirak region about Zakharova commented on the scandalous epithets of the governor of Armenia`s Shirak region about "Ivanov"
Nikolai Bordyuzha proposed excluding Armenia from the CSTO.Nikolai Bordyuzha proposed excluding Armenia from the CSTO.
The participation of Artsakh ensembles in an international festival in Vienna was cancelled following the intervention of several foreign embassiesThe participation of Artsakh ensembles in an international festival in Vienna was cancelled following the intervention of several foreign embassies
Expert: It`s time for Armenia to move away from uncertainty and choose between West and EastExpert: It`s time for Armenia to move away from uncertainty and choose between West and East
The Armenian Foreign Minister commented on the country`s return to work within the CSTO.The Armenian Foreign Minister commented on the country`s return to work within the CSTO.
The Artsakh Public Council expressed outrage at the UN Secretary-General`s behaviorThe Artsakh Public Council expressed outrage at the UN Secretary-General`s behavior
Lukashenko called for Armenia to assume the CIS presidency in 2029Lukashenko called for Armenia to assume the CIS presidency in 2029
Dmitry Medvedev predicted a Ukrainian-like fate for Armenia amid the country`s shift in foreign policyDmitry Medvedev predicted a Ukrainian-like fate for Armenia amid the country`s shift in foreign policy
Russian Security Council: In Armenia, they want to force Russian asset owners to dispose of their assetsRussian Security Council: In Armenia, they want to force Russian asset owners to dispose of their assets
Zakharova: Russia ready to discuss with Armenia the prospects for expanding military cooperation as part of a review of bilateral tiesZakharova: Russia ready to discuss with Armenia the prospects for expanding military cooperation as part of a review of bilateral ties
Tevanyan: Armenia, like Ukraine and Moldova, is being drawn into the EU’s global warTevanyan: Armenia, like Ukraine and Moldova, is being drawn into the EU’s global war
Yerevan City Hall is considering introducing a valet parking system in the cityYerevan City Hall is considering introducing a valet parking system in the city
Expert: The circus surrounding the “Albanization” of Armenian culture in the presence of foreign ambassadors in occupied Artsakh is genocideExpert: The circus surrounding the “Albanization” of Armenian culture in the presence of foreign ambassadors in occupied Artsakh is genocide
Political scientist: If Russian-Armenian relations are destroyed, Turkey will take Russia`s placePolitical scientist: If Russian-Armenian relations are destroyed, Turkey will take Russia`s place