Armenia will receive additional funding of €135 million for the development of the energy system within the framework of the "Caucasus Electricity Network" program. The corresponding agreements were signed with the participation of the country's government, the European Union, and Germany. In the future, the project should ensure the connection of the republic to the European energy system.
The main part of the funds — €120 million — will be provided as a loan by the German bank KfW under state guarantees from Germany, and another €15 million will be allocated by the EU in the form of a grant. Taking into account previously agreed programs, the total amount of European funding already reaches €313.2 million, with an additional €10 million invested by the European Investment Bank.
The initiative aims to increase the country's energy resilience, develop renewable energy sources, and deepen integration into the regional market. In the long term, this will expand opportunities for cross-border electricity exchange and bring Armenia closer to the European energy system.
