A study of the energy sector privatization in Armenia: A path to follow

Abstract

Privatization is one of the tools that governments of transition countries employ in order to decentralize the centralized economic system and create favorable conditions for operational market economy. Privatization takes place with the purpose of providing competition in the market, improving efficiency in the sphere of providing goods and services and management of enterprises. This essay studies the process and results of privatization of the energy sector in Armenia. The essay describes the changes occurred in the sector due to privatization, examines the differences in power generation, demand, supply, transmission and consumption in the process of privatization, year by year. The essay stresses the fact that in the midst of the collapse of one political regime and acquisition of another, the government used relatively well-worked out mechanism for privatization in the power sector. The essay point out that today Armenian energy sector is a branch of economy that is fully operational and cost-effective.