Results and key findings
SDG 7 Roadmap for Armenia
Anis Zaman
ESCAP
13 May 2024
Second National Stakeholder Consultation Workshop and Capacity Building on the National
Expert SDG Tool for Energy Planning (NEXSTEP) for the SDG 7 Roadmap for Armenia
Objective of this Presentation
Provide:
- Brief introduction to the modelling methodology
- Current energy situation (2021)
- Highlights of energy transition pathways (scenarios)
Invite stakeholders’ feedback:
- Modelling data and assumptions used
- Proposed energy transition interventions
Model Structure
Key
Assumptions
Population
No. Households
GDP
Population
Growth Rate
GDP Growth
Rate
Demand
Industry
Cement and
non-metallic
products
Mining
Food and
beverages
Iron and steel
+7 other sub-
sectors
Transport
Road
Transport
Road –
Passenger
Cars
Motorcycles
Buses
Tractors
Road -
Freight
Trucks
Rail
Transport Air Transport
Residential
Urban
Electrified
Electric
Appliances
Cooking
Heating
Rural
Electrified
Electric
Appliances
Cooking
Heating
Commercial
Government
building
Healthcare
Facilities
Educational
Institution
Other buildings
Other
Agriculture
Non-specific
energy use
Transformation
Electricity
Generation
Heating
Generation
Transmission
and Distribution
Effects – GHG
Emissions
Power and
Heat
Demand
sectors
Resources
Primary
Secondary
Scenario Development Process in LEAP
Data Collection – bottom-up approach
• Cooking distribution and intensity data
• Appliance ownership consumption intensity
• Heating distribution and intensity data
Residential
• Fuel consumption data (i.e. electricity, oil products)Industry
• Vehicle statistics (i.e. number of vehicles by fuel type)
• Annual travelled mileage, passenger load factor, fuel
economy
Transport
• Floorspace data
• Electricity and fuel consumption intensity (kWh/m2)Commercial
• Existing capacity and generation
• Planned power capacity expansionPower
• Governmental reports/surveys
• Governmental databases
• International organisation databases
• Benchmarking
• Research papers etc.
Data Sources
Current situation of the energy sector
Base year 2021
Energy Situation in 2021
Armenia’s 2021 status for the SDG 7 indicators and GHG emissions
ACCESS TO MODERN ENERGY
6.9 MtCO2-e
Considering the energy sector only
RENEWABLE ENERGY
6% of TFEC
Excluding traditional biomass usage in residential cooking and
heating
ENERGY EFFICIENCY
4.0 MJ/USD
Primary energy intensity measured in terms of primary energy
and GDP (PPP, 2017)
GHG EMISSIONS
100%
Population with access to
electricity in 2021
98.6%
Population with access to
clean cooking in 2021
TFEC and TPES, 2021
Total final energy consumption (TFEC) in 2021 by Sector
2.84 Mtoe
Total primary energy supply (TPES) in 2021 by Fuel
3.75 Mtoe
Residential
33.8%
Transport
31.7%
Commercial
15.3%
Industry
13.1% Agriculture
3.6%
Non-energy
use
2.6%
Natural Gas
60.7%
Oil Products
15.7%
Nuclear
13.5% Hydropower
5.8%
Biomass
3.1%
Renewables
0.8%
Coal
0.3%
Energy Balance 2021
Fossil fuel makes up a large portion of Armenia’s energy flows.
Unit: Thousand Tonnes of Oil Equivalent (kToe)
Access to modern
energy in 2021
• The electrification rate in
Armenia was already 100 per
cent in 2021
• The clean cooking access was
98.6 per cent in 2021
• Around 10,706 households still
relied on unclean and polluting
kerosene and biomass stoves as
their primary cooking technology
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural Total
City Gas Electric Stove Biomass Stove
Energy intensity target setting
• Energy efficiency improvement rate to achieve the SDG 7.3
target requires the energy intensity to drop to 2.9 MJ/US$ in
2030.
• The CAGR between 2021 and 2030 must be around 29.6 per
cent which is a challenge.
• NEXSTEP analysis suggests to align with the global target of
3.4 per cent, reaching 2.9 MJ/US$.
-7.3%
-14.5%
0.2%
-29.6%
-3.4%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
Armenia Baseline
Improvement rate
(1990 -2010)
SDG 7.3 target for
Armenia (2010 - 2030)
Armenia EE
Improvement rate
(2010 - 2021)
SDG 7.3 target for
Armenia (2021 - 2030)
Global Suggested
Improvement rate
(UNSD, 2022)
An
nu
al
im
pr
ov
em
en
t r
at
e
GHG emissions in
2021
• Emissions calculated based on IPCC Tier 1
emission factors in terms of 100-year GWP
values.
• For the energy sector emissions were
estimated at 6.9 MtCO2-e
• Transport sector emissions were
the largest at 2.4 MtCO2-e
• Power generation and residential
sectors each at 1.6 MtCO2-e.
• Commercial, industry and
agriculture sectors together 1.3
MtCO2-e
Scenarios development 2030
Assumptions, growth factors and constraints
The baseline – Business As Usual (BAU) Scenario
Assessing the gap – Current Policy Scenario (CPS)
Meeting the SDG and NDC targets – Sustainable Development Goal (SDG) Scenario
Beyond 2030 - Towards Net Zero Scenarios
Scenarios
Key Growth Projections and Assumptions
Parameters Business as usual scenario Current policy scenario Sustainable Development Goal scenario
Economic growth
12.6 per cent between 2021 and 2022, 8.7 per cent between 2022 and 2023, 5.7 per cent between 2023 and 2024, and 6 per cent per annum from
2024
Population growth -0.48 per cent per annum1
Urbanization rate 67 per cent in 2021, growing to 68 per cent in 20302
Commercial floor space Assumed annual energy consumption increasing at the same growth as GDP
Industrial activity Assumed annual energy consumption increasing at the same growth as GDP
Transport activity Passenger transport activities and freight transport activities are assumed growing at a rate like the growth in GDP per capita
Residential activity The appliance ownership for electrical appliances is projected to grow at a rate like the growth in GDP per capita.
Access to electricity The 100 per cent access to electricity has been achieved.
Access to clean cooking fuels
Projected based on the historical penetration rate between the 2000-2020 period.
100 per cent clean cooking access rate is expected to be achieved by 2026
Energy efficiency Additional energy efficiency measures not applied Improvement based on current policies
Global improvement in energy intensity
adopted
Power plant
Considers 2021 RE share in power generation and
grid emissions
Considers capacity expansion provided by Armenia
[1] Historical data and estimation from Asian Development Bank
[2] This assumes that the urbanisation rate grows with an annual rate of 0.16 per cent, with reference to the national historical urbanisation growth from 2010 to 2020.
SDG scenario
Achieving SDG 7 Targets in 2030
SDG 7 Targets
7.1.1 Access to Electricity – 100% by 2030
7.1.2 Access to Clean Cooking Fuel – 100% by 2030
7.1.3 Renewable Energy in TFEC – no set target
7.1.4 Energy efficiency – doubling the rate of improvement in energy efficiency
SDG and NDC Targets
a mitigation target of Armenia’s NDC that will be that the emissions will need to cap at 13.6
MtCO2-e from the energy sector by 2030.
Access to modern energy in 2030
Access to Electricity
• Universal clean cooking is likely to be achieved
under the current policy settings
• Based on the historical improvement rate,
Armenia is expected to achieve universal access
to clean cooking by 2026
Access to Clean Cooking
• Universal access to electricity is already achieved
60
65
70
75
80
85
90
95
100
2000 2005 2010 2015 2020 2025 2030
Cl
ea
n
co
ok
in
g
ac
ce
ss
ra
te
(%
)
Historical trend BAU/CPS SDG
Technology Annualized cost
Electric cooking stove US$ 164
Natural gas stove US$ 98
Energy Demand in 2030
• By 2030, in all scenarios, the
Transportation sector consumption
will be by far still the largest
followed by the power and
residential sectors.
• Adoption of energy efficiency
measures in the SDG scenario might
reduce around 0.3 Mtoe compared
to the CP scenario.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Base year CPS SDG
En
er
gy
d
em
an
d
(M
to
e)
Transport Residential Commercial Industry Agriculture Non-energy use
Energy saving opportunities in 2030
Sector Measure
Energy demand
reduction in
2030 (ktoe)
Residential
The development of energy-
efficient construction 16.0
Transport
Improve fuel economy of
passenger cars and trucks 165.6
Industry
Financing measures for
modernizing technological
processes and equipment and
introducing energy-saving
measures in all industries
69.8
Commercial An increase in the share of
purchased energy-efficient
equipment
91.7
Total 343.1
Sector/area Measure Energy demand
reduction in 2030
(ktoe)
Residential
Cooking
Adoption of electric cook
stoves to 25% in urban and
10% in rural areas in 2030
22.0
Residential
Heating
15% heat pumps in urban and
promote electric heaters to
25% in rural areas.
71.3
Residential MEPS For lighting, refrigeration, and
television
40.9
Commercial External insulation of
commercial buildings 58.9
Industry Deep retrofitting to reduce
thermal loss 44.9
Transport EV penetration by 20% 68.9
Total 306.9
Energy demand reduction in 2030
(ktoe) in CPS, compared to BAU
Energy demand reduction in 2030 (ktoe)
in SDG scenario, compared to CPS
-0.35
-0.3
-0.25
-0.2
-0.15
-0.1
-0.05
0
2024 2025 2026 2027 2028 2029 2030
En
er
gy
sa
vi
ng
(M
to
e)
Residential Industry Commercial Transport
Energy Intensity (MJ/USD) in 2030
Energy demand reduction of 0.3 Mtoe in
2030 compared to the CP scenario helps
improving energy intensity. 2.8
3.1
3.5
4.0
0.0 1.0 2.0 3.0 4.0 5.0
SDG 2030
CPS 2030
BAU 2030
Baseyear 2021
MJ/US$
Energy Intensity
Energy efficiency
improvement target
Renewable Energy
Renewables share in TFEC Renewables share in power generation
6.0%
6.6%
9.9%
12.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
1
2
3
4
5
6
Base year BAU CPS SDG
2021 2030
%
RE
in
T
FE
C
TP
ES
(M
to
e)
Natural gas Oil products Nuclear Hydropower
Biomass Renewables Coal %RE in TFEC
30.9%
31.0%
47.6%
52.7%
0%
10%
20%
30%
40%
50%
60%
0
2
4
6
8
10
12
BAU CPS SDG
Base year 2021 2030
RE
c
ap
ac
iit
y
sh
ar
e
in
p
ow
er
(%
)
Po
w
er
g
en
er
at
io
n
(T
W
h)
CHP Single Gas Turbine Nuclear Hydro
Solar Wind Geothermal RE share (%)
Emissions in 2030
• The mitigation target of Armenia’s NDC that will be a 40 per cent reduction in total national greenhouse gas (GHG)
emissions by 2030 compared to 1990 level.
Progress towards SDG 7 Targets for 2030
Energy transition beyond 2030
Net Zero Emissions by 2050
Towards Net Zero by 2050
Additional demand and
GHG emission reduction
can be realized through the
following:
2031 - 2050
• Adoption of 100 per cent
electric cook stoves by
2050
• Adoption of 100 percent
electric vehicles for road
transport by 2050
• Fuel switching to electricity
in the industry sector
• Decarbonise power sector
using renewable system
with BESS
• Decarbonise heating sector
with heat pump
0
1
2
3
4
5
6
7
8
BAU CPS SDG TNZ
En
er
gy
d
em
an
d
(M
to
e)
Transport Commercial Residential Industry Agriculture Non-energy use
0
2
4
6
8
10
12
14
16
18
202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050
GH
G
EM
IS
SI
O
N
(M
tC
O
2-
e)
Transport Electricity Generation Residential Commercial Industry Agriculture BAU
Policy recommendations/Conclusion
1. Increasing the efficiency of energy use in all economic sectors should be pursued. The presence
of a national energy efficiency plan will help Armenia reduce its energy intensity by 2030. Additional
measures in the SDG scenario can reduce energy demand further.
2. Transport electrification provides multi-fold benefits in the long run. Vigorous adoption of electric
vehicles reduces the demand for oil products, hence reducing Armenia’s reliance on imported petroleum
fuels.
3. Decarbonisation of the power supply is the key to achieving net zero emissions by 2050. It
provides the highest potential in GHG emission reduction as well as improves energy security
4. Enabling policy measures are required to improve clean cooking by 2030. The adoption of electric
cookstoves by at least 20 per cent of the population will significantly help improve energy security and
reduce emissions.
- Results and key findings�SDG 7 Roadmap for Armenia
- Objective of this Presentation
- Scenario Development Process in LEAP
- Data Collection – bottom-up approach
- Current situation of the energy sector
- Energy Situation in 2021
- TFEC and TPES, 2021
- Energy Balance 2021
- Access to modern energy in 2021
- Energy intensity target setting
- GHG emissions in 2021
- Scenarios development 2030
- Scenarios
- Key Growth Projections and Assumptions
- SDG scenario��Achieving SDG 7 Targets in 2030
- SDG and NDC Targets
- Access to modern energy in 2030
- Energy Demand in 2030
- Energy saving opportunities in 2030
- Energy Intensity (MJ/USD) in 2030
- Renewable Energy
- Emissions in 2030
- Slide Number 23
- Energy transition beyond 2030�
- Towards Net Zero by 2050
- Policy recommendations/Conclusion
- Slide Number 27