The announcement of sharply increased gas prices for Armenia have sparked many questions about social and geo-political consequences, European Friends of Armenia (EuFoA) said in a statement.

Discussions on the exact extent, the timing and the handling of the price increase are still on-going and will hopefully lead to a feasible solution. Meanwhile, it is worth looking at the large potential for helping Armenian citizens based on similar experiences made in other European countries.

In this context, EuFoA calls upon the Armenian government and the EU to redouble their common efforts to reduce avoidable gas consumption and waste in Armenia in mainly two areas:

1. In Armenia until today, most housing relies on old style heating systems and lacks basic insulation, wasting up to 50% of the energy. The government should therefore focus most of its subsidies on renovation projects which tackle these issues and seek the EU’s advice with similar programmes in the EU, including the new EU energy passports for buildings. Finally, the EU should provide financial assistance for energy-efficiency related administrative reforms and in part also for renovation funds. If the USA joins the latter, they can more credibly insist on the continued low reliance on Iranian gas in Armenia.

2. Currently 30-40% of Armenia’s electricity is produced by thermal power plants based on gas. Meanwhile, Armenia continues to underexploit its large potentials in solar, wind and hydraulic energy. These renewable sources would also increase Armenia’s energy independence and decentralise the strategic risks of Armenia’s energy production in times of natural disasters or conflicts. Germany, amongst others, has offered Armenia a renewable energy programme, which should be implemented quickly and possibly widened.

“We believe that the problem needs to be resolved primarily in Armenia, which undergoes energy market changes similar to those in Central European countries in the 1990s and will continue to do so over the coming 10 to 20 years. The consequences of price increases can be compensated, even over-compensated, by falling prices in other areas and a reduction of the average gas consumption by families in Armenia. For this, all the measures described here need to be applied together. Armenians should also be reassured that the EU-Armenia Deep and Comprehensive Free Trade Area (DCFTA) will help increase the market efficiency and reduce prices of every-day goods in Armenia in the coming years,” EuFoA said.