Armenia does not have fossil fuel or coal reserves — it is entirely dependent on imported fuel for transportation, electricity generation, and heat production. Armenia has overcome the energy crisis of the 90’s and has built a viable energy system. However, compared to the year 1988, which was the peak of economic output of the Republic of Armenia, energy consumption lags far behind. The generation capacity in 1988 was over 3.5 GW, but the energy use in 2010 was on average below 1.2 GW. This can be explained by the fact that industry in Armenia has yet to recover fully from the economic decline that started with the collapse of the USSR.
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