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Energy trilemma as an assessment tool for national energy systems on the example of the Republic of Armenia

According to the UN Sustainable Development Agenda which replaced the Millennium Development Goals (MDGs) and includes components of social, economic, and environmental development, ensuring access to affordable, reliable, sustainable and modern energy sources is the seventh global goal in the system of seventeen interrelated goals developed by the UNGA in 2015. The goal implies operation and development of environmentally friendly national energy systems that will contribute to socio-economic development. To assess the dynamics and development trends of global energy systems, the methods of their quantitative assessment become particularly relevant. In this aspect, the most important tool for assessing the sustainability of global energy is the energy trilemma index developed by WEC and «Oliver Wyman Group» consulting company. The index is a comprehensive assessment of the economic, social, and environmental components of the UN sustainable development program. It allows countries to be quantified by their ability to ensure energy security, energy equity and the environmental sustainability of national energy systems, considering socio-economic and political changes. The paper presents the main methodology for calculating the energy trilemma index and its role in assessing sustainable and safe energy. In 2021, there were changes in the methodology of calculating the index, so it became possible only to compare the dynamics of changes of key components. Based on the indicators of 2021, the main trends in the global energy system are presented. The mechanism of the index components’ influence on the formation of a country’s rating is illustrated. A special attention is given to the analysis of the indicators of energy trilemma index for the Republic of Armenia in 2021, considering the main challenges of the Armenian energy sector and the consequences of the Forty-Four Day War in 2020. The dynamics of main components of energy trilemma index of Armenia is shown through the analysis of the conjuncture and the main development trends of the country’s energy system. The practical significance of the index for shaping the state policy for the energy sector development is emphasized as well.