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Analysis: Armenia's Quest For Power

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  • Analysis: Armenia's Quest For Power

    ANALYSIS: ARMENIA'S QUEST FOR POWER
    World News Editor

    Earthtimes.org
    Posted : Thu, 13 Sep 2007 16:44:54 GMT

    WASHINGTON, Sept. 13 Of the three post-Soviet Caucasian republics,
    Armenia in many ways remains the most isolated.

    Unlike rising petro-states Azerbaijan and Georgia, which earn
    millions of dollars annually from transit fees for the Baku-Supsa
    and Baku-Tbilisi-Ceyhan pipelines, Armenia has, since even before
    the Soviet collapse, struggled to meet its power needs. It relies
    on its aging Metsamor nuclear power station for nearly 40 percent of
    its energy generation.

    Metsamor, which began operations in 1976, contains two VVER-400 V230
    376 megawatt nuclear reactors generating about 2 million kilowatt
    hours of energy annually.

    Many environmentalists regard it as an accident waiting to happen. The
    Armenian government closed Metsamor's Unit 1 in February 1989 and
    Unit 2 the next month following a massive December 1988 earthquake.

    Armenia's isolation intensified in the aftermath of its armed conflict
    with neighboring Azerbaijan over the Nagorno-Karabakh enclave. During
    the clash, which erupted in February 1988 and lasted until May
    1994, Azerbaijan blockaded roads, rail lines and energy supplies,
    leading to severe energy shortages in Armenia. In 1991 pressure to
    restart Metsamor increased after a vital natural gas pipeline from
    Turkmenistan was blocked by a Turkish and Azeri fuel embargo. By
    the winter of 1994-95, residents of Yerevan often had only an hour
    or two of electricity daily, which the restart of Metsamor's Unit 2
    increased to 10-12 hours per day.

    Economic compulsions forced Armenia to restart Unit 2 in October
    1995. Five months before the restart, a team of experts from the
    International Atomic Energy Agency visited Metsamor to assess the
    seismic characteristics of the plant and site. It cautiously concluded
    that the plant's seismic protection measures were satisfactory. Both
    the United States and the European Union strongly opposed reopening
    the facility, saying Metsamor's Soviet-designed reactor was unsafe
    and have since given tens of millions of dollars in aid to upgrade
    Metsamor's safety systems while pressuring the Armenian government
    to close the facility as soon as possible.

    Armenia's energy shortages and deepening ties with Iran, along with its
    professed interest in nuclear power, has won it Washington's attention.

    Armenia is not alone in its renewed attention to nuclear power; by
    2020 Russia plans to build 26 new nuclear power plants, increasing
    its share of nuclear power generation in the federation's total energy
    production from its current level of 15 percent to 30 percent.

    Armenia has adroitly exploited U.S. and European concerns about
    Metsamor to entice the EU into assisting the country to develop
    alternative power sources. The European Commission's Technical Aid to
    the Commonwealth of Independent States' "Substitution of nuclear power
    through the development of hydropower capacity" project is designed
    to increase Armenia's hydropower capacities with the eventual goal
    of shuttering the Metsamor plant by upgrading Armenia's hydropower
    capacity by approximately 70 megawatts, beginning with the Tatev Hydro
    Power Plant, the major station of a group of hydroelectric facilities
    that collectively provided 15 percent of Armenia's electricity in 2004.

    "Vorotan plays an important part in regulating the purity and
    reliability of our energy system's performance," Armenian Deputy
    Energy Minister Areg Galstyan said of the project. "We therefore
    focused our collaboration activities with the EU in this area."

    The TACIS project also completed feasibility studies for the
    construction of seven small and medium-sized hydropower plants with
    a total capacity of 80 megawatts.

    Armenia's energy policies represent a rare conjunction of EU,
    U.S. and Russian interests. Since 2003 Metsamor has been operated
    by the Russian company Inter RAO UES under a five-year agreement to
    help pay off Armenia's debts. Keeping all its options open, Armenia
    is also considering construction of a new nuclear facility on the
    Metsamor site at a cost of about $2 billion.

    Armenian Energy Minister Armen Movsisyan told Parliament, "The
    project's feasibility study is being carried out by Armenia, Russia,
    the U.S. and the International Atomic Energy Agency. The old NPP
    is to be rebuilt within 4½ years," adding that Metsamor must be
    operational until alternative power sources are found.

    Throughout the Soviet Union, Armenians were legendary for their
    business acumen. By adroitly playing upon EU environmental concerns,
    Russian eagerness for business contracts and American desires to thwart
    Iranian energy exports, Armenia may pull off its biggest coup yet,
    having foreign investors pay for diversifying its energy assets.

    --Boundary_(ID_/8OA71napZUA57DxuEbIyQ)--
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