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ENERGY SYSTEM BOOST: WB TO SUPPORT POWER SUPPLY RELIABILITY IN ARMENIA
Energy Monitor Worldwide
April 1, 2015 Wednesday
Armenia will receive $52 million from the World Bank for the repairs
of two 220 kW substations, Laura E. Bailey, World Bank Country Manager
for Armenia, said.
The program implies the capital repairs of two major 220-kW
substations: Ashnak (in Armenia's Aragatsotn province) was built
in 1983 and serves about 120,000 customers, the Yerevan Thermal
Power Plant (TPP) was built in 1965 and serves about 1 million,
40 thousand people.
The situation in the power supply sector in Armenia is close to
critical. The Armenian power grid owned by the Russian company Inter
RAO is on the verge of bankruptcy. It has been announced that the
company has debts that, according to various estimates, reach several
hundred million dollars.
There is information that Moscow-based Armenian businessman Samvel
Karapetyan may purchase the Armenian electric network. According
to the Haykakan Zhamanak newspaper, the company is already making
preparations for the sale, but the deal has not been concluded yet.
The process of the sale of the Vorotan HPP Hydro Cascade to the
American ContourGlobal company has not been finalized yet either. The
company more than a year ago signed an agreement with the Armenian
government, pledging to pay $180 million and making investments in the
facility. However, the government still has not finalized the deal yet.
By 2020, Armenia will need an additional 500 megawatts of generating
capacity, said Laura Bailey, citing the World Bank estimates. The
additional demand, she added, will be best met by a new gas-fired
thermal power plant to be built by new technologies.
Armenia meets a large part of its electricity demand due to the
nuclear power plants. Armenia has declared its intention to begin
in 2018 construction of a new nuclear power plant unit, but it still
cannot find the appropriate investment. The current NPP's operation
has been extended until 2026, however, experts believe that after
that Armenia will have to abandon nuclear energy. This means that
the country will need to find other sources of inexpensive energy.
At present the installed capacity for electricity generation in
Armenia is 4200 MW, of which operating are only 55 percent (2,300 MW).
At the same time, the cost of kW/h of energy produced by the
nuclear power plant is 5.7 AMD, by the Yerevan TPP - 18.1 AMD,
by the Sevan-Hrazdan HydroCascade - 2.1 AMD, by the Vorotan HPP -
8 AMD, by small hydro power plants - 21.8 AMD, by the Hrazdan TPP -
36.9 AMD and by the Fifth Unit of the Hrazdan TPP - 40.1 AMD. (The
dram exchange rate today is about 470 AMD per USD).
The Hrazdan TPP and its Fifth Unit are owned by Russia's Gazprom and
produce electricity on expensive Russian natural gas.
The Yerevan TPP works on the Iranian gas. It should be reminded that in
connection with the nuclear power plant's temporary halt for repairs
and the incomplete deal on Vorotan, the share of electricity produced
by TPPs has increased, which also means higher costs. In this regard,
it expected that the Armenian electric networks will apply to the
Public Services Regulatory Commission for the electricity tariff to
be increased. 2015 Global Data Point.
From: Emil Lazarian | Ararat NewsPress
Energy Monitor Worldwide
April 1, 2015 Wednesday
Armenia will receive $52 million from the World Bank for the repairs
of two 220 kW substations, Laura E. Bailey, World Bank Country Manager
for Armenia, said.
The program implies the capital repairs of two major 220-kW
substations: Ashnak (in Armenia's Aragatsotn province) was built
in 1983 and serves about 120,000 customers, the Yerevan Thermal
Power Plant (TPP) was built in 1965 and serves about 1 million,
40 thousand people.
The situation in the power supply sector in Armenia is close to
critical. The Armenian power grid owned by the Russian company Inter
RAO is on the verge of bankruptcy. It has been announced that the
company has debts that, according to various estimates, reach several
hundred million dollars.
There is information that Moscow-based Armenian businessman Samvel
Karapetyan may purchase the Armenian electric network. According
to the Haykakan Zhamanak newspaper, the company is already making
preparations for the sale, but the deal has not been concluded yet.
The process of the sale of the Vorotan HPP Hydro Cascade to the
American ContourGlobal company has not been finalized yet either. The
company more than a year ago signed an agreement with the Armenian
government, pledging to pay $180 million and making investments in the
facility. However, the government still has not finalized the deal yet.
By 2020, Armenia will need an additional 500 megawatts of generating
capacity, said Laura Bailey, citing the World Bank estimates. The
additional demand, she added, will be best met by a new gas-fired
thermal power plant to be built by new technologies.
Armenia meets a large part of its electricity demand due to the
nuclear power plants. Armenia has declared its intention to begin
in 2018 construction of a new nuclear power plant unit, but it still
cannot find the appropriate investment. The current NPP's operation
has been extended until 2026, however, experts believe that after
that Armenia will have to abandon nuclear energy. This means that
the country will need to find other sources of inexpensive energy.
At present the installed capacity for electricity generation in
Armenia is 4200 MW, of which operating are only 55 percent (2,300 MW).
At the same time, the cost of kW/h of energy produced by the
nuclear power plant is 5.7 AMD, by the Yerevan TPP - 18.1 AMD,
by the Sevan-Hrazdan HydroCascade - 2.1 AMD, by the Vorotan HPP -
8 AMD, by small hydro power plants - 21.8 AMD, by the Hrazdan TPP -
36.9 AMD and by the Fifth Unit of the Hrazdan TPP - 40.1 AMD. (The
dram exchange rate today is about 470 AMD per USD).
The Hrazdan TPP and its Fifth Unit are owned by Russia's Gazprom and
produce electricity on expensive Russian natural gas.
The Yerevan TPP works on the Iranian gas. It should be reminded that in
connection with the nuclear power plant's temporary halt for repairs
and the incomplete deal on Vorotan, the share of electricity produced
by TPPs has increased, which also means higher costs. In this regard,
it expected that the Armenian electric networks will apply to the
Public Services Regulatory Commission for the electricity tariff to
be increased. 2015 Global Data Point.
From: Emil Lazarian | Ararat NewsPress