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The Energy Policy of Armenia is aimed at ensuring energy independence and enhancing the energy security of the country, ensuring regional integration and sustainable development of the energy sector based on further development of nuclear energy, diversification of supply of energy sources and full and efficient use of local (renewable) energy resources, as well as promotion and implementation of energy-efficiency measures.

The Government is taking significant steps to increase the total share of renewable energy to at least 50% in electrical energy production of the country. In 2017 the portions of electricity production by type was as follows 38.8% thermal power plants, 29.5% hydro-electric power plants and 36.7% nuclear power.

As of the 1 July 2018, electricity was generated by 186 Small Hydro Power Plants (SHHPs), with total 360 MW installed capacity, from which 125 was constructed in last 10 years. Thirty-three additional SHPPs are under construction, with about total projected 63.2 MW capacity and 250 million kWh annual supply. Anual hydropower resource potential is estimated at 222.4 million kWh.

The average annual amount of solar energy flow per square meter of horizontal surface is about 1720 kWh (the average European is 1000 kWh). One fourth of the country's territory is endowed with solar energy resources of 1850 kWh/m2/year. According to the first stage of the "Solar PV plant construction Investment Project" that was approved by the Government of the Republic of Armenia Protocol Decision 53-37 dated 29 December 2016, it is foreseen to construct a utility-scale Masrik-1 solar PV power plant with 50-55 MW capacity in Gegharkunik Marz of Armenia. Construction of other five PV plants with about 60MW average capacity will follow-up.

The RA Government envisages to support private projects for construction of wind power plants by developing new legal incentives. Thus, it is foreseen to construct wind power plants with capacity of 100-150 MW. The first grid connected wind power plant in Armenia and in Caucasus with total capacity of 2,6 MW was put in operation at Pushkin pass in December 2005. Electrical energy production license was given to other two wind power plants, with total 270 kW designed installed capacity. Additional 2 wind power plants – total with 5.3 MW capacity are under construction.

The RA Government envisages to support private projects for construction of geothermal power plants by developing new legal incentives. In the result of Exploratory Drilling Grant Program, it is foreseen to construct a Geothermal Power Plant at Karkar site, Syuniq Region, Armenia. Within the framework of the said Program 2 narrow wells exploratory drilling results and Preliminary Cost Calculations for Karkar Geothermal Power Plant have been prepared. Within this framework it is foreseen to find investment companies with international experience for the construction of Geothermal/Organic Rankin Cycle operating/Power Plant at Karkar Geothermal site. Wells test reports as well as the final cost calculation reports have been sent to more than 50 international investors by e-mail.

Improving energy security and economic competitiveness of the country, and minimizing the negative impact on the environment is a priority. In this regard the Government makes tangible efforts to promote the introduction and development of energy-saving technologies. Implementation of clean energy projects for development of green energy in rural communities is planned for the nearest future.

As a landlocked country, Armenia's economy heavily depends on international transit and cross-border access. To ensure access to foreign markets the Transport Sector Development Strategy has been developed, which defines investment priorities in transport sector. It pursues maximization of the transport sector's performance by 2020, and envisages a long-term prosperity through establishment of efficient, cost effective, environmentally and socially sustainable transport infrastructure and services.

In case of import from non EAEU member countries customs authorities calculate and collect (…) environmental taxes before release of goods except for the cases fixed in legislation.

According to the Treaty on EAEU, trade between EAEU members is exempted from customs duties. Since there is no common border between RA and other EAEU members' goods are moved according to the "Customs Transit" customs procedure, in exception of being transported by air, electric transmission or pipelines. So, for goods imported from EAEU countries, importers have to pay indirect taxes (VAT and excise tax) no later than 20th day of the month following the importation day and also (...) environmental taxes in terms fixed in the tax code of RA.