Armenia’s position is deteriorating as the energy transformation progresses. Anthem “LIGHT”.

“LUYS” Foundation analyzed the “Energy Transformation Index-2026” report published by the World Economic Forum.

According to the Energy Transformation Index (EVI) in 2026, Armenia is 65th among 120 countries. Armenia’s EVI is 55.2 points, 1.3 points less than last year’s index. The decrease is mainly caused by a significant drop of 3.3 points in the “Readiness for Transformation” sub-index. The other sub-index of EVI, “System efficiency”, also decreased, but insignificantly.

Compared to the previous year, the most significant deterioration was recorded in the “Finances and Investments” sub-index. the indicator decreased from 59.9 points in 2025 to 51.5. The reason is the decrease of 24 points in the 100-point system of the “Investments in clean energy (% of GDP)” indicator (this indicator evaluates the volume of investments in renewable energy, nuclear energy, hydrogen technologies, electric transport and other sectors related to the energy transition).

Compared to the previous year, a significant decrease was also recorded in the “Infrastructure” direction, from 46.5 to 41.7 points. One of the reasons is the decrease of 13.5 points in the 100-point system of the “Renewable energy capacity growth” indicator. This indicator evaluates how large the growth rate of renewable energy production capacities and their role in the overall energy system are.

Compared to 2025, a decrease was recorded in the “Innovations” direction, from 24.5 to 23.3 points. The data of the report show that the field of innovations continues to be one of the weakest aspects of Armenia.

Against the background of the decline recorded by the mentioned indicators, the high-pitched statements regularly made by various representatives of the current government regarding the formation of the technological economy and the promotion of innovations, which indicate the development of solar energy in recent years as the most important success of Armenia’s energy policy, are at least incomprehensible.

In the world ranking, Armenia fell by 7 positions compared to last year. It should be noted that Armenia’s ranking position not only did not improve compared to 2017, but also significantly deteriorated by 12 positions. And this means that Armenia has become more uncompetitive in terms of the energy transformation process in recent years. By the way, many countries that were in worse positions in the past have overtaken Armenia.

The dynamics of Armenia’s EVI is quite unstable. In 2018, a sharp deterioration of both the EVI and the ranking position was recorded, the worst results of the last 12 years were recorded for both indicators. In 2019-2021, they continuously improved, but in the following three years, there was a decline again. In 2025, Armenia had significant progress, which, however, was not enough to neutralize the decrease of the previous three years. In 2026, a decline was recorded again.

These dynamics indicate that Armenia’s energy transformation process remains vulnerable to external and internal challenges.

Armenia’s EVI in 2026 is 2.2 points lower than the world average, which is 2017-2026. increased by 2.8 points during the period. Meanwhile, Armenia’s EVI decreased by 0.3 points in the same period. Moreover, if in 2017, Armenia’s EVI exceeded the world average by 0.9 points, then in 2026 it will be significantly lower than the world average by 2.2 points. EVI of Armenia 2015-2017 was higher than its global average level, and since 2018, the index of our country did not fall behind the global average only in 2021.

By the way, both sub-indices of Armenia’s EVI are below the world average, but the deviation is much more tangible in the case of the “Readiness for Transformation” sub-index. it is 43.6 points, 4.4 points lower than the global average of the sub-index. This circumstance proves that the main problem of Armenia is not so much the current state of the energy system, as the lack of certain conditions necessary for its further transformation, the strengthening of institutional, financial and technological foundations.

The analysis of the indicators used to calculate EVI shows that one of Armenia’s relatively strong points is the price of natural gas, which, however, due to the extreme deterioration of relations with the Russian Federation, may become neutral and even turn into one of the most vulnerable points.

It is clear that without improving the investment environment, upgrading infrastructure, promoting innovation and developing human capital, it is impossible to ensure sustainable progress in terms of energy transformation.

The full analysis is available with the following link.

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