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A Real Fix: Armenia's energy situation

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  • A Real Fix: Armenia's energy situation

    Eurasianet Organization
    April 26 2005

    A REAL FIX: ARMENIA'S ENERGY SITUATION
    Paul Rimple 4/26/05
    Photos by Sophia Mizante

    It was 19 years ago on April 26 that a reactor at the Chernobyl
    nuclear power plant in Ukraine exploded, spewing radiation across
    Europe. The anniversary of the tragedy helps to focus attention on
    Armenia's energy dilemma, in which the country depends heavily on an
    antiquated nuclear facility to meet its power needs.

    Armenia's Metsamor Nuclear Power Plant, situated near geological
    fault lines, is responsible for generating about 40 percent of the
    electricity used by Armenians every year. A lack of access to
    alternate power sources is a major factor in the country's ongoing
    dependence on the nuclear facility. The economic blockade maintained
    by two of Armenia's neighbors -- Turkey and Azerbaijan - hampers the
    large-scale import of fuel, while the country's lack of water
    resources limits hydro-electric power-generating capacity.

    The only nuclear energy source in the South Caucasus, Metsamor lies
    just 28 kilometers outside of Yerevan, 16 kilometers from the Turkish
    border, 60 kilometers from Iran and less than 150 kilometers from the
    Georgian and Azerbaijani borders. Built in mid 1970s, the
    twin-reactor station was closed in early 1989 following the
    earthquake late the previous year that left an estimated 25,000
    people dead. The plant itself withstood tremors measuring 5-6 on the
    Richter scale. The Metsamor reactors are of the Soviet design known
    as VVER, considered marginally more structurally sound than the
    Chernobyl-type reactors, or RBMKs. Still, Armenian officials felt
    compelled to take no operational chances following the 1988
    earthquake.

    Immediately following the closure, Armenia fell into a period known
    as "the dark years," when an energy shortage became acute. To heat
    their homes during the winter, residents stripped the capital Yerevan
    of virtually everything made of wood, leaving few trees standing.
    Meanwhile, Lake Sevan, which was already suffering from Soviet-era
    ecological damage, was further drained to compensate for energy
    shortages.

    In October 1996, Unit 2 at Metsamor, a 440-megawatt reactor, resumed
    operation with Western financial assistance for safety upgrades. In
    2003, Russia's state-run power monopoly RAO Unified Energy Systems
    (UES) assumed responsibility, through a subsidiary, for running the
    Metsamor plant in return for Moscow's cancellation of $40 million in
    debt. [For additional information see the Eurasia Insight archive].

    The city of Metsamor, four kilometers from the plant, was built
    essentially to house the power station's employees. When the plant
    closed in 1989, the majority of the population suddenly became
    unemployed, and many people were forced to leave the area to search
    for work elsewhere. Today, roughly 20 percent of Metsamor's 10,000
    residents work at the nuclear plant. Locals have mixed feelings about
    the risks; some feel there is no danger at all and are grateful for
    the economic opportunity that the nuclear plant provides; others
    mistrust authorities' safety assurances and worry about the radiation
    risks. Still others accept the risks, while desiring compensation for
    assuming them, including free electricity.

    One added hazard, not only for locals, is that nuclear waste must be
    stored on site because of the Turkish-Azerbaijani blockade.
    Additionally, fuel must be flown in from Russia - over Georgian
    airspace. At the same time, Georgia indirectly benefits from
    Metsamor's operation, as the nuclear facility's generating capacity
    enables Armenia to export up to 150 megawatts of electricity daily
    from the Razdan thermoelectric plant to Georgia.

    European diplomats remain concerned about Metsamor's operation. The
    European Union -- along individual Western governments, the World
    Bank and the International Atomic Energy Agency (IAEA) -- have
    pressed the Armenian government to shut Metsamor down. While the EU
    had originally given millions of euros in aid for safety upgrades,
    the grouping of European states froze a 100 million-euro energy grant
    in June 2004, citing Yerevan's continuing reluctance to close the
    plant.

    Shutting down is not so simple. Besides the exceedingly high cost of
    closure, estimated by some as high as $1 billion, Armenia has lacks
    the natural resources and the funds to fully develop alternatives.
    Meanwhile, local and Russian experts believe Metsamor can safely
    function until 2016, due to strengthened security systems that take
    into account the possibility of another earthquake. Some experts,
    citing upgrades made at similar Russian nuclear facilities, suggest
    that Metsamor could remain operational until 2031.

    Despite a funding shortage, Armenia has made some progress in
    securing energy alternatives, including an agreement on the
    construction of an Armenian-Iranian pipeline project. [For background
    see the Eurasia Insight archive]. The government has also set aside
    funds in the state budget to promote the use of solar energy. Panels
    can be randomly seen on Yerevan rooftops, including the American
    University in Armenia. Meanwhile, recent surveys suggest that wind
    power could potentially generate 400-500 megawatts of electricity -
    about one-third of Metsamor total output. The first wind power
    station, built with Iranian financial assistance, is scheduled to go
    into operation in the Pushkin Mountain Pass in 2005. It will have an
    estimated annual capacity of 5 million kilowatt/hours.



    Editor's Note: Paul Rimple is a freelance writer based in Georgia.
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