Modernizing Power, Empowering Women

Energy Reforms in Armenia

Armenia’s power distribution network has been largely neglected and has suffered from the effects of poor construction and irregular maintenance work in the 1990s.

In 2016, the ENA Closed Joint-Stock Company embarked on an investment program (2016–2027) to upgrade its management and operations to international standards. The only company with the license to distribute electricity in Armenia, ENA is keen on upholding its responsibility to maintain and expand the distribution network.

ADB and the European Bank for Reconstruction and Development (EBRD) jointly financed phase 1 of ENA’s investment program, which focused on upgrading and modernizing the electricity distribution network in the Armenian capital of Yerevan. It was successfully completed in 2020.

When COVID-19 struck in the same year, ADB and the EBRD once again jointly assisted ENA by providing working capital support to overcome the challenges caused by the pandemic.

Despite the ongoing pandemic, ENA received encouraging support from partners to begin implementing phase 2 of its investment program.

Investing in Energy Efficiency and Gender Equality

In 2021, ADB approved the Armenia: ENA’s Investment Program Phase 2. The second phase will expand the coverage of phase 1 and modernize electricity distribution networks to ensure reliable electricity supply in the whole of Armenia, particularly in the provinces. The project is supporting the funding requirements for the first 2 years (2021–2022) of phase 2. ADB is providing a $20 million loan, while the EBRD is providing $70 million in cofinancing and the Leading Asia’s Private Infrastructure Fund, administered by ADB, is providing $15 million.

This project will help support Armenia’s growth and development by expanding critical energy capabilities, while also supporting women empowerment in the energy sector. It’s truly win-win.

– Wolfgang Pocheim, ADB investment specialist and project officer

In phase 2, ENA will also seize the opportunity to enhance gender equality in the workplace and in its business operations. ENA is the largest employer in Armenia, with over 6,800 employees. However, only 12% of its staff are women. They also have fewer roles in management and technical and non-technical professional positions.

Modernizing power

Network modernization and expansion are the focus of phase 2 of ENA’s investment program.

A good deal of financing will go to upgrading and reinforcing network substations. About 30% of total investments will be applied to reconstruct the 6/10-kilovolt (kV) and 0.4 kV distribution network to provide more efficient services to its 1 million customers. Outdated and depreciated equipment at the substations will be replaced. Equipment at single- and double-transformer substations will also be replaced and later equipped with a remote management system, which will improve the efficiency of grid operation.

The network will be substantially expanded and improved to accommodate the numerous applications to ENA for new connections. ENA receives more than 7,000 applications for new connections annually; by law, ENA is required to connect all applicants.

ENA’s automatic electricity metering system for the 0.4 kV network will be expanded and improved to reduce commercial losses. Electronic meters will have remote reading capability for all customers.

Other investments will cover emergency repairs and renovation of ENA’s facilities. ENA will also continue to invest in the implementation of International Organization for Standardization standards of management and will modernize overall planning and control functions as well as customer interface.

Advancing gender equality

As part of the project design, ENA has incorporated several measures to promote gender equality and enhance women’s empowerment in its business activities.

These measures include leadership training for 30 female staff and an internship program at ENA for 10 female students or graduates in technical fields.

To enhance gender inclusiveness in the workplace, ENA will develop and implement a gender inclusion policy to support the hiring, retention, and promotion of female staff, along with an anti-sexual harassment policy. In addition, ENA is promoting available informational materials and support services to survivors of gender-based violence in communities at its customer service centers.

Moving Forward

The ENA investment program contributes to the government’s goal of improving the efficiency and reliability of the energy sector through reconstructing and modernizing existing power substations, power lines, and other network equipment.

Thus far, ENA successfully implemented phase 1 of the investment program and has soldiered on through the COVID-19 pandemic. In implementing phase 2, ENA ensures that lessons from the previous loans have been carefully considered and utilized.

“This project will help support Armenia’s growth and development by expanding critical energy capabilities, while also supporting women empowerment in the energy sector. It’s truly win-win,” said Wolfgang Pocheim, ADB investment specialist and project officer.