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ARMENIA - FLAGMAN OF REGIONAL REVOLUTION
Regnum reported that the government is negotiating with Contour Global,
a company registered in New York cooperating with the U.S.
government and the World Bank, for the hydropower cascade on the
Vorotan Riven. The company has confirmed to Regnum that it is
negotiating purchase of Vorotan Cascade with the Armenian government.
The company specializes in water energy, as well as wind and solar
energy.
The negotiations may result in a breakthrough for the Armenian energy
sector because so far all the energy capacities have been dominated by
Russia. The Western companies expressed interest in Armenia's energy
sector in 2000-2001 when the distribution network was privatized.
The World Bank stipulated competitive privatization, the network was
divided to two packages to ensure that the same company does not manage
the entire network. The Russian companies which had not undergone an
international audit were left out of the competition, But they did
not lose because the competition was cancelled due to some reasons,
and a few years later the Armenian government made an "autocratic"
decision to sell the network to a company registered in the offshore
without a competition which belonged to Member of Parliament Harutiun
Pambukyan. In addition, this offshore company did not have experience
in distribution network management. Soon the company sold the network
to the Russian RAO UES. The Armenian government eventually delivered
the network to Russia using a sequence of steps.
Since then no other Western company has come close to the energy
generation and distribution resources of Armenia. So, Vorotan Cascade
could be a breakthrough, considering that this New York-based company
specializes in wind and solar energy.
That could be the first step towards the practical stage of energy
diversification gradually relieving dependence on Russia. In this case,
Russia which uses energy as a leverage is not the only problem.
The other issue is elimination of unilateral dependence on state-run
companies of one country, which is a key issue of sovereignty and
security of Armenia.
Interestingly, Vorotan Cascade with a total capacity of 400 megawatts
was reported for a long period as a subject of interest of Russia which
could be used as a resource for compromise or concession. Either Russia
has lost interest, maybe due to wear and tear or required investments,
or the Armenian government displayed will to privatize this company
in accordance with the needs and prospects of Armenia.
Interestingly, during the meeting of the US-Armenia Joint Economic
Taskforce the sides signed a MoC on energy. Apparently, the current
development is part of this MoC given frequent statements by the U.S.
ambassador on his intensive efforts for attracting American investment.
On the other hand, it is early to speak about Russia's reduced
interest in this generating unit because interest may drop if there
are no other buyers, whereas otherwise Russia might get motivated. In
general, Russia is good at hindering. So there is a risk.
If the deal is made, a company specializing in wind and solar energy
will come to Armenia where hydropower is important, of course, but
there is also a huge potential for wind and solar energy. Armenia has
not only raw materials but also an intellectual potential, and if
the American company's expertise and investments are combined with
the scientific potential of Armenia, the prospects of alternative
energy will produce revolutionary results of regional importance.
Hakob Badalyan 17:31 11/06/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/30121
From: A. Papazian
Regnum reported that the government is negotiating with Contour Global,
a company registered in New York cooperating with the U.S.
government and the World Bank, for the hydropower cascade on the
Vorotan Riven. The company has confirmed to Regnum that it is
negotiating purchase of Vorotan Cascade with the Armenian government.
The company specializes in water energy, as well as wind and solar
energy.
The negotiations may result in a breakthrough for the Armenian energy
sector because so far all the energy capacities have been dominated by
Russia. The Western companies expressed interest in Armenia's energy
sector in 2000-2001 when the distribution network was privatized.
The World Bank stipulated competitive privatization, the network was
divided to two packages to ensure that the same company does not manage
the entire network. The Russian companies which had not undergone an
international audit were left out of the competition, But they did
not lose because the competition was cancelled due to some reasons,
and a few years later the Armenian government made an "autocratic"
decision to sell the network to a company registered in the offshore
without a competition which belonged to Member of Parliament Harutiun
Pambukyan. In addition, this offshore company did not have experience
in distribution network management. Soon the company sold the network
to the Russian RAO UES. The Armenian government eventually delivered
the network to Russia using a sequence of steps.
Since then no other Western company has come close to the energy
generation and distribution resources of Armenia. So, Vorotan Cascade
could be a breakthrough, considering that this New York-based company
specializes in wind and solar energy.
That could be the first step towards the practical stage of energy
diversification gradually relieving dependence on Russia. In this case,
Russia which uses energy as a leverage is not the only problem.
The other issue is elimination of unilateral dependence on state-run
companies of one country, which is a key issue of sovereignty and
security of Armenia.
Interestingly, Vorotan Cascade with a total capacity of 400 megawatts
was reported for a long period as a subject of interest of Russia which
could be used as a resource for compromise or concession. Either Russia
has lost interest, maybe due to wear and tear or required investments,
or the Armenian government displayed will to privatize this company
in accordance with the needs and prospects of Armenia.
Interestingly, during the meeting of the US-Armenia Joint Economic
Taskforce the sides signed a MoC on energy. Apparently, the current
development is part of this MoC given frequent statements by the U.S.
ambassador on his intensive efforts for attracting American investment.
On the other hand, it is early to speak about Russia's reduced
interest in this generating unit because interest may drop if there
are no other buyers, whereas otherwise Russia might get motivated. In
general, Russia is good at hindering. So there is a risk.
If the deal is made, a company specializing in wind and solar energy
will come to Armenia where hydropower is important, of course, but
there is also a huge potential for wind and solar energy. Armenia has
not only raw materials but also an intellectual potential, and if
the American company's expertise and investments are combined with
the scientific potential of Armenia, the prospects of alternative
energy will produce revolutionary results of regional importance.
Hakob Badalyan 17:31 11/06/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/30121
From: A. Papazian