Page 37 - Caucasus Outlook 2025

Efforts are also underway to strengthen Georgia’s energy connectivity with neighbouring countries and with Europe, including the development of a subsea electricity link across the Black Sea.
7.2 Energy & Power – Armenia
There was a 6.1% y/y increase in total energy production in the first 11 months of 2024, with 8.2 TWh produced by November. Of this, 18% was renewable energy, up from 15% in 2023. Solar and wind energy saw the most significant growth, with solar power generation rising by 22% and wind power by 14%. This reflects the impact of expanded capacity and favourable policy incentives.
In 2024, the Mets Masrik solar plant, Armenia's largest solar power project, reached full operational capacity, adding 120 MW of generation to the grid. This project, along with a number of smaller-scale solar farms, has contributed to Armenia's progress towards its goal of generating 30% of its electricity from renewable sources by 2030. Furthermore, two new wind farms with a combined capacity of 100 MW were approved, supported by international financing and public-private partnerships.
Nuclear energy continued to be a key component of Armenia's energy mix, accounting for 38% of total electricity generation. In 2024, the Armenian Nuclear Power Plant (ANPP) underwent safety upgrades to ensure compliance with international standards and extend its operational lifespan. The development of a new nuclear unit continued apace, with feasibility studies supported by international partners.
TPPs accounted for 30% of electricity production, with existing facilities undergoing modernisation to enhance operational efficiency. The commissioning of the Yerevan Combined Cycle Gas Turbine Power Plant has enhanced system reliability and reduced emissions, in line with Armenia's environmental commitments.
Armenia continued to reinforce its energy collaboration with neighbouring countries, with electricity exports to Georgia and the EEU region rising by 12% y/y. Furthermore, progress was made on the Armenia-Iran energy corridor, which is designed to facilitate cross-border electricity trade.
7.3 Energy & Power – Azerbaijan
Azerbaijan’s oil, gas, and power sectors recorded a combination of challenges and growth during January-November 2024. While oil production faced a continued decline, gas production and renewable energy experienced notable increases, reflecting the country’s shift
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