Armenia will not abandon plans to build new nuclear power plant
YEREVAN, October 19. / ARKA /. Armenia will not abandon the plans to build a new nuclear power plant, despite the fact that the government is preparing to extend the service life of the operating unit at Metsamor facility, the ministry of energy and natural resources said in a statement today.
Under two Russian-Armenian agreements, Russia will provide Armenia with a credit of $270 million and a $30 million grant to extend the service life of Metsamor plant until 2026. The funds will be provided for 15 years with a 5-year grace period and an interest rate of 3% per annum. The agreements envisage that the loan may be provided in Russian rubles.
Earlier, in late 2014 the sides signed an agreement on the extension of nuclear power plant operation until 2026.
"It is necessary to realize that Armenia has no other alternative to nuclear energy. The reasons for slowing down the process of the construction of the new facility are various," the ministry noted.
According to it, one of the reasons is the accident at the Fukushima nuclear power plant in Japan that made the world change its attitude to the use of nuclear energy. Besides, some countries, in particular Germany, decided to abandon the use of nuclear energy altogether.
"Nuclear energy remains one of the most effective, high-quality, reliable and cheap energy sources. Armenia does not refuse the use of nuclear energy, and regardless of anything in 2027 it has to have a new nuclear power unit," according to the statement.
The ministry believes that the extension of the service life of nuclear power plant in Metsamor enables a more detailed study of the construction of a new nuclear power plant. In particular, Armenia has another 2-3 years that can be used for examining new technological solutions, available at the market, the statement said.
The Metsamor plant located some 30 kilometers west of Yerevan, was built in the 1970s but was closed following a devastating earthquake in 1988 that killed some 25,000 people and devastated much of northern Armenia.
One of the plant’s two VVER 440-V230 light-water reactors was reactivated in 1995. The government wants to build a new facility that is supposed to operate at twice the capacity of the Soviet-constructed facility. Metsamor currently generates some 40 percent of Armenia's electricity. But the government has yet to attract funding for the project that was estimated as much as $5 billion.
In September Armenia’s deputy energy minister Areg Galstyan said the capacity of the new unit is very likely to be reduced to 600 megawatt from the earlier proposed 1,000 megawatts. He added that the government is considering also the option of building two units each with the capacity of 600 MW. He said the construction of two new power units with 600 MW capacity each would enhance the energy independence of Armenia from the current 50% to 73%. -0-
Under two Russian-Armenian agreements, Russia will provide Armenia with a credit of $270 million and a $30 million grant to extend the service life of Metsamor plant until 2026. The funds will be provided for 15 years with a 5-year grace period and an interest rate of 3% per annum. The agreements envisage that the loan may be provided in Russian rubles.
Earlier, in late 2014 the sides signed an agreement on the extension of nuclear power plant operation until 2026.
"It is necessary to realize that Armenia has no other alternative to nuclear energy. The reasons for slowing down the process of the construction of the new facility are various," the ministry noted.
According to it, one of the reasons is the accident at the Fukushima nuclear power plant in Japan that made the world change its attitude to the use of nuclear energy. Besides, some countries, in particular Germany, decided to abandon the use of nuclear energy altogether.
"Nuclear energy remains one of the most effective, high-quality, reliable and cheap energy sources. Armenia does not refuse the use of nuclear energy, and regardless of anything in 2027 it has to have a new nuclear power unit," according to the statement.
The ministry believes that the extension of the service life of nuclear power plant in Metsamor enables a more detailed study of the construction of a new nuclear power plant. In particular, Armenia has another 2-3 years that can be used for examining new technological solutions, available at the market, the statement said.
The Metsamor plant located some 30 kilometers west of Yerevan, was built in the 1970s but was closed following a devastating earthquake in 1988 that killed some 25,000 people and devastated much of northern Armenia.
One of the plant’s two VVER 440-V230 light-water reactors was reactivated in 1995. The government wants to build a new facility that is supposed to operate at twice the capacity of the Soviet-constructed facility. Metsamor currently generates some 40 percent of Armenia's electricity. But the government has yet to attract funding for the project that was estimated as much as $5 billion.
In September Armenia’s deputy energy minister Areg Galstyan said the capacity of the new unit is very likely to be reduced to 600 megawatt from the earlier proposed 1,000 megawatts. He added that the government is considering also the option of building two units each with the capacity of 600 MW. He said the construction of two new power units with 600 MW capacity each would enhance the energy independence of Armenia from the current 50% to 73%. -0-