Although the immediate crisis passed, and the nuclear power plant resumed operations in 1996, the reliability of Armenia’s electricity supply remained poor. Decades of underinvestment in the transmission system left key infrastructure vulnerable, and aging equipment in substations and transmission lines caused more supply disruptions.
Rebuilding the Vital Backbone
Transmission lines are the backbone of Armenia’s energy system, carrying power from plants to industries, businesses, and households. Without a reliable grid, factories cannot operate, renewable energy cannot be integrated, and the economy remains exposed to outages and shocks. For decades, this backbone was weak: much of the network was more than 40 years old, under-maintained, and unable to meet modern demands.
By the early 2010s, the urgency to modernize Armenia’s transmission network grew. Essential infrastructure had deteriorated to the point where critical sections of the grid could no longer ensure reliable operation. These outages disrupted production, delayed investment, and undermined competitiveness. Without reliable transmission, businesses could not plan or expand, and the grid was unprepared to carry new sources like solar and wind.
In 2011, the Government of Armenia and High Voltage Electric Networks (HVEN), the national transmission system operator, partnered with the World Bank to launch the Electricity Supply Reliability Project—the first major investment in transmission in decades. The project rehabilitated 230 km of high-voltage transmission lines and three key substations. A follow-up project in 2015 expanded upgrades to additional substations serving residential and industrial consumers.
A More Reliable Grid for Businesses and Industry
Supported by the World Bank and other partners, HVEN has continued rehabilitating and modernizing substations. Almost 75% of Armenia’s substations have now been upgraded, strengthening the grid’s reliability, safety, and operational performance.