Economic Effects of Renewable Energy Sources Implementation in the CIS Countries Using the Example of the Republic of Armenia

Abstract

In the context of the global energy transition, post-Soviet countries are faced with the need for structural transformation of their energy systems. The introduction of renewable energy sources (RES) is becoming an important tool for increasing energy security, reducing dependence on hydrocarbon imports, and implementing sustainable economic development strategies. The integration of RES serves as a factor in diversifying energy systems and stimulating economic growth. Assessing the impact of RES introduction on macroeconomic indicators, particularly GDP, is a relevant and promising area of interdisciplinary research, integrating theoretical economic approaches and sustainable development principles. Aim. The objective of this study is to conduct a systemic analysis of the impact of RES introduction on economic growth in the Republic of Armenia, with an emphasis on the impact of this process on GDP, in the context of transformation processes in the CIS countries. Armenia, an example of a vulnerable energy system, experiences high dependence on imports and limited domestic energy resources, leading to seasonal shortages and requiring the adaptation of its energy infrastructure. There is significant heterogeneity in the institutional and technological integration of renewable energy sources across the CIS countries, due to differences in resource bases, energy infrastructure development, and political readiness to transition to sustainable energy sources. Methods. The analysis revealed that the energy sector has a significant impact on the Armenian economy. Results. The active development of renewable energy sources and Armenia’s integration into international energy markets open up new opportunities for foreign trade diversification, including electricity exports to Iran and Georgia. However, to realize the full export potential, it is necessary to develop interstate power transmission lines. Conclusions. The study’s findings emphasize that, despite the energy sector’s relatively low share of GDP (approximately 4%), its role in the country’s economic structure remains significant. Given the positive dynamics of renewable energy development, Armenia and other CIS countries need to continue modernizing their energy infrastructure, stimulate investment in green technologies, and develop the sector’s export potential. These measures will help increase the resilience of the energy system, reduce dependence on external supplies, and promote economic growth in the region.