Currently, Armenia has adequate operational capacity to meet the domestic demand. However, given the impending decommissioning of the nuclear power plant estimated at 2020, uncertainties with the construction of the new one and the overall old age of the other generation assets, the country may experience peak demand shortages in the medium to long-term. Moreover, certain sections of the electricity transmission network are extremely old and require urgent rehabilitation/replacement. To address issues of long-term financial sustainability, energy security and regional integration, World Bank needed an analysis of the energy sector’s strengths, weaknesses, opportunities and threats.