In comparison to other countries of the Southern Caucasus, Armenia is the country with the least number of people, the smallest territory, landlocked, dependent on external energy supply. Armenia is also engaged in the military conflict in the area of neighboring Azerbaijan to defend the interests of Armenian living there. Armenia hasn’t got its own fossil energy sources and it is also not a transit country, which transit oil and natural gas through its territory. Therefore, this country is heavily dependent on energy imports. In 2012, 90% of the country’s energy needs were met by import. In that situation, the energy security of Armenia is the second key challenge, next to the military one, for its modern policy. The import share in Armenia’s total energy demand is slightly fluctuating depending on the hydropower potential: in the dry period, import volume is increasing. Armenia has a big renewable energy potential that could become the guarantee of energy security and of diversification of energy resources.