10th Quarterly Report: January – March 2021

The program, funded by the United States Agency for International Development (USAID), has been in operation for five years and is in its 11th quarter of implementation. The MLET program focuses on helping Armenian public and private energy sector institutions adopt legal and regulatory reforms, accelerate the implementation of market liberalization mechanisms, and strengthen Armenia-Georgia dialogue on cross-border electricity trade. During the reporting period from January 1 to March 31, 2021, the MLET program made significant progress despite significant disruptive circumstances in Armenia. The program completed all required program management deliverables and substantially advanced work plan tasks and technical deliverables. Key achievements during the second quarter include the submission and approval of the ninth Quarterly Report, the update of the Risk Matrix for managing and monitoring Market Management System (MMS) software development, and the launch of the Pilot-Transition to the New Wholesale Electricity Market (WEM). The program also conducted a series of trainings for the Electricity Market Operator's (EMO) Market Department and Market Participants (MPs), with a total of 47 participants from all energy sector entities. Additionally, the program made further revisions to the Transmission and Distribution Network Codes, which were adopted by the Public Services Regulatory Commission (PSRC) in December 2019. The revisions include the electricity sector's Reliability and Security Indicators and will continue throughout the development of the WEM pilot phase. The MLET team also continued developing the Electricity Market Gap Analysis Report to facilitate compliance with the European Union (EU) acquis communautaire. The report will review EU directives and regulations that apply to electricity market development, identify any potential gaps in Armenia's current framework, and lay out actions needed to meet the EU-Armenia Comprehensive Economic Partnership Agreement (CEPA) requirements. Furthermore, the team submitted Recommendations for Improvement of the Primary Legislation for Autonomous Power Production in Armenia to the Ministry of Territorial Administration and Infrastructure (MTAI) and the Public Services Regulatory Commission (PSRC). The MLET program has made significant progress in improving the Armenian electricity market and expanding electricity trade with Georgia. The program's achievements during the reporting period demonstrate its commitment to helping Armenian public and private energy sector institutions adopt legal and regulatory reforms and accelerate the implementation of market liberalization mechanisms. The program's continued development of the Electricity Market Gap Analysis Report and the submission of recommendations for improvement of the primary legislation for autonomous power production in Armenia demonstrate its commitment to facilitating compliance with the EU acquis communautaire and meeting the EU-Armenia CEPA requirements. The MLET program's progress during the reporting period has been significant, despite the challenges posed by the COVID-19 pandemic and the ongoing conflict in Nagorno-Karabakh. The program's achievements demonstrate its ability to adapt to changing circumstances and continue making progress towards its goals. The program's continued development of the MMS monitoring module and the transfer of report templates to the monitoring module demonstrate its commitment to improving the efficiency and effectiveness of the electricity market in Armenia.