A project on improvement of the energy system was worked out and it has to ensure its stability and reliability

The presentation of the program ‘Ways of Long-Term Development of Armenia’s Energy System until 2036’ took place today. The participants included Armenian Prime Minister Hovik Abrahamyan, Minister of Energy and Natural Resources Yervand Zakharyan, Armenian MPs, diplomats accredited to Armenia, representatives of international organizations and NGOs.

The program ‘Ways of Long-Term Development of Armenia’s Energy System until 2036’ was developed with the support of USAID, in cooperation with U.S. experts, and with the participation of experts from energy institutes. Prime Minister Hovik Abrahamyan said the program aims to develop various capacities and infrastructure ensuring regional integration. The program’s purpose is to improve the quality and reliability of the means of energy delivery and the services rendered to consumers, increase the efficiency of investment, reduce losses, and take measures on financial restructuring of the system and revising the methodology, principles and mechanisms for tariff calculation. According to the prime minister, it is planned to extend the service life of the 2nd unit of Armenian Nuclear Power Plant for ten years. The relevant work is already being done, and negotiations over the construction of a new nuclear power unit are underway with investors.

Energy Minister Zakharyan said for his part: “Being aware that these programs can be implemented only in case of a healthy system, back in May 2014 we started a deep, comprehensive analysis of the whole energy system. As a result of studies, a project on improvement of the energy system was worked out and it has to ensure its stability and reliability”.

The minister said that a procedure for drawing up a balance of production, import, export of electricity and its delivery to distribution networks has already been developed. It forms the basis of the approved electricity tariffs for a period starting from August 1st, 2015, which excludes the possibility of financial losses in Electric Networks of Armenia (ENA) Company.

In his words, the system of management is based on a control mechanism that immediately reacts to minor deviations. In addition, the minister said, proposals have been worked out to optimize the energy system, increase the efficiency of investments and the quality of services provided to consumers, modernize the system of electricity tariff calculation, and reduce losses. These projects will be implemented within the next 1-2 years and are expected to cut losses in distribution networks by 1.5-2%.