Energy, Natural Resources Ministry Submits 2014 Performance Report

Chaired by Vice Prime Minister, Minister for International Economic Integration and Reforms Vache Gabrielyan, the Government discussed the Ministry of Energy and Natural Resources-submitted report on key activities and priority tasks in 2014 in compliance with the Government’s Action Plan, as well as the Ministry’s estimated performance report.

Energy and Natural Resources Minister Yervand Zakharyan presented the work done in the period under review, including the breakdown of per-sector activities. In 2014, the Ministry of Energy and Natural Resources was allocated AMD688.3 million, of which an outstanding balance of 7.1 million drams was returned to the State budget.

7 751 billion kilowatt / hours of electricity was produced in 2014; 40 million kilowatt / hours more than in 2013. The aggregate amount of electricity produced at home and imported from abroad rose to 7 billion 528 million kilowatt / hours, that is 65 million kilowatt / hours more than in 2013.

The breakdown of actual budget revenue in the mining sector is as follows: AMD10.7 million as feasibility study or mining concession fees paid by licensees, AMD20773.8 million as metallic mineral production-related fees (royalties), AMD1537.9 million as non-metallic mineral production-related fees and AMD553.3 million as a State duty paid for mining permits.

To enhance Armenia’s energy security, the 2014-2020 Energy Security Concept Implementation Program and Timetable was adopted under a government decree.

Additional benefits were allowed in an effort to develop renewable energy in the country. Safe small HPPs, a mandatory term for the purchase of electricity produced from all other types of renewable resources has been set at 20 years instead of 15.

Under the World Bank-supported energy efficiency program for 2012-2015, energy conservation measures were implemented in 31 public facilities in Yerevan, Ararat, Vayots-Dzor, Gegharkunik, Tavush and Aragatsotn Marzes of Armenia to a total cost of AMD278511.59 thousand. An action plan has been developed to improve the financial position of public companies in the energy sector.

The following activities were implemented in the sphere of nuclear energy: the Armenian NPP Renewal Project was approved, with a cooperation arrangement signed between the Russian and Armenian governments on the renewal of the second reactor of the ANPP.

A number of legal acts have been adopted to streamline the operations of Ministry-affiliated enterprises. The scope of international cooperation has been expanded, including with the World Bank, the Asian Development Bank, the International Bank for Reconstruction and Development and the German KfW bank. A number of investment projects were signed in the energy sector.

Assisted by the US Agency for International Development, a least-cost development program has been developed for Armenia’s energy system. 84 permits were issued for the conduct of geological surveys in the field of mineral extraction, including 62 permits for the development of metallic minerals, and 22 - for non-metallic minerals developments.

In the period under review, the Ministry received 18 applications for extraction of minerals, of which 13 were complied with, 3 are under consideration, while 2 of the bids were declined on the grounds of non-conformity with the legislation of the Republic of Armenia.
After adopting the Republic of Armenia Law on Environmental Impact Assessment and Expertise, relevant amendments were made to the Code on Use of Soil, under which the mining rights will henceforth be granted according to the one-stop-shop principle.

A national mineral resources management strategy has been developed.