Tweet
ELECTRICITY PRODUCTION IN ARMENIA
by Areg Gharabegian
http://www.reporter.am/go/article/2013-10-08-electricity-production-in-armenia
Published: Tuesday October 08, 2013
Decommissioning of the nuclear power plant in Metsamor has been
postponed to 2021. Photolure
Related Articles
Renewable energy assessment for Armenia
Water issues in Armenia
YEREVAN - Electricity production in Armenia has fully recovered from
major problems it was facing in early 1990s and is now a reliable
industry.
Armenia's energy issues started after the 1989 earthquake when the
government of Soviet Armenia was forced to close the Metzamor nuclear
power plant in 1990 under mounting pressure from a public that was
concerned about safety issues related to the plant, fearing a Chernobyl
type catastrophe. In 1987, people in Armenia started demonstrating
against Soviet rule. After the devastating earthquake of 1989, some
activists started demanding the closure of Metzamor nuclear plant as
well as the Nairit chemical and rubber producing complex.
Shutting down the nuclear plant was the worst mistake of the recent
Armenian history.
Had the nuclear plant not been closed, Armenia would not have plummeted
in to the dark ages and as a result would have not lost one third of
its population to forced economic immigration. After more than 20
years, Armenia still has not recovered from the devastation caused
by these closures.
Even though Armenia had excess electricity production in 1988 and
was exporting electricity to other Soviet Republics, shutting down
about 1/3 of electricity production capacity of a country was bound
to have some negative impact on industry and economic wellbeing.
However, the main electricity production problems started only after
the Soviet Union's collapse, independence of Armenia, and subsequent
war over Karabagh with Azerbaijan. Because Armenia does not have
oil or gas it had been relying on gas and oil imports from Russia to
operate its thermal power plants. Gas was being delivered via pipeline
and oil via train, both traversing Azerbaijan. When as a result of
the war, Azerbaijan imposed a blockade; Armenia was cut off from
its gas and oil supplies. Due to the lack of required fuel, thermal
power plants were shut down and Armenia had to rely only on its hydro
power production from the Sevan-Hrazdan and Vorotan cascades. These
two hydro power cascades were not operating at full capacity because
required parts could not be delivered from Russia via train that had
to go through Azerbaijan. Industrial production ceased due to the
lack of electricity and fuel, resulting in the economy's collapse.
Armenia's energy sector has seen tremendous change in the last two
decades. Restarting the second unit of the nuclear power plant in
1995 helped bring an end to the energy crisis. The availability of
electricity service has increased from just a few hours a day from
two decades ago to 24 hours a day. Electrical production companies
have emerged from heavy dependence on state funding to commercial
viability. However, the same issues that caused the collapse of the
system in the mid-90s still exist; Armenia still relies on imported gas
and oil for its energy production. A majority of the gas is imported
from Russia via a pipeline through Georgia and a small amount of gas
is being imported from Iran also via a pipeline. Gasoline and heavy
fuel oil are delivered from Russia via tanker trucks. Uranium for
operating the nuclear power plant is also imported from Russia.
Armenia's electricity system has 3,914 Mega Watt (MW) of installed
capacity, of which only 73 percent or 2,845 MW is currently
operational. Electricity is produced by three generation sources:
nuclear (34 percent), thermal (32 percent), and hydropower (34
percent). The share of thermal and hydropower plants in the capacity
and production mix has increased in recent years because new plants
have been built and Armenia has experienced weather conditions over the
past several years that have been favorable for hydro power production.
The Metzamor nuclear power plant provides base load capacity. The
Vorotan and Sevan-Hrazdan Cascade hydro power plants provide daily
load regulation, while thermal power plants operate to meet winter's
peak demand and to serve as the base load a few weeks in fall when
the nuclear power plant goes offline for maintenance.
Thermal Power Plants
The main thermal power plant complexes are in Hrazdan and Yerevan. The
original equipment at these two gas-fired plants has worked beyond
the 200,000 work hour design life and does not meet international
technical, economic, and environmental performance standards. These
plants have not undergone necessary capital improvements in recent
years and operations and maintenance have been consistently
under-funded. The plants run on outdated Soviet technology and
obtaining spare parts for maintenance is difficult and costly because
the equipment is no longer manufactured.
The construction of the Hrazdan thermal power plant was started in 1963
with a total capacity of 1,110 MW. The first unit became operational
in 1966. The fuel efficiency of Hrazdan thermal power plants is 35
percent compared to 57 percent for a new, efficient thermal power
plant. In 2004 Armenia transferred the Hrazdan thermal power plant
complexes to the Russian Federation as a means of satisfying certain
state debts. ArmRusGasprom, the Russian owner of the Hrazdan complexes
has recently completed construction of a new 440 MW Hrazdan 5 thermal
power plant which is an efficient plant meeting today's operational
standards.
The first of seven turbines of the Yerevan thermal power plant with
a capacity of 50 MW began operation in 1963. The totaled installed
capacity of Yerevan thermal power plant complex is 550 MW but today
only one of the older generating units remains operational with
capacity of approximately 50 MW. This complex has operated for more
than 40 years, although the lifespan of thermal power plants throughout
the world is 30 years. A new 240 MW combined cycle gas turbine at
the Yerevan thermal power plant complex came online in 2010 which
was constructed with a $247 million loan from the Japanese Bank for
International Cooperation. The loan was given in 2007 with an interest
rate of 0.75%, and a 40-year term, with a 10-year grace period.
This gas-powered turbine is able to generate approximately one-quarter
of Armenia's current electricity output. This unit is also twice as
efficient as the plant's decommissioned units. The new plant was
constructed with an aim to reduce the generation cost of 1 KW/hr
electricity from the current 400 drams to 160-170 drams. Construction
of the second and third power plants on the same site is being
considered by the Government of Armenia.
There are also two other small plants in Armenia. The Yerevan
Thermoelectric Plant has only one turbine with capacity of 50 MW and it
produces electricity, steam, and heat mainly for the Nairit Chemical
Plant. The Vanadzor Thermoelectric Plant, with a capacity of 50 MW,
is presently not operating and will be operated only if the Vanadzor
chemical complex becomes operational.
Nuclear Power Plant
The Metzamor nuclear power plant was built during the 1970s, about 19
miles west of Yerevan. The total capacity of the two units at Metzamor
is close to 800 MW but only one of the units is operational. The plant
is one of just a few remaining nuclear power reactors in the world
that were built without primary containment structures. The plant has
been operated by a Russian company, Inter RAO UES since 2003, as part
of an agreement to help pay off Armenia's debts to Russia. The 400
MW operational unit is beyond its 30 year design life and scheduled
for decommissioning in 2021.
Armenia will face a major supply-demand gap once the nuclear power
plant is retired and that is the reason why the government of Armenia
is trying to secure financing to build a new nuclear power plant
which is estimated to cost approximately $4 billion.
Hydro Power Plants
Historically, hydropower has constituted a large part of Armenia's
electrical energy production resources. There are two large hydropower
cascades, Sevan-Hrazdan and Vorotan that have a combined installed
capacity of approximately 960 MW. As of 2012, there were more than
110 commercial size small hydropower power plants (SHPP) operating in
Armenia. About 60 of these have been developed and constructed in the
past 10 years. There are also numerous small units (micro) that are
operated by individuals to satisfy their own electrical needs. The
forecast is that SHPP generation would grow from its current 5%
penetration level of the total electricity generation to 10% within
the next 10 years.
The Sevan-Hrazdan Cascade Hydropower System is one of the most
important hydropower generation assets in Armenia. It was built
between 1936 and 1961. The system consists of seven run-of-the-river
hydropower stations, canals, and reservoirs between Lake Sevan and
the City of Yerevan. With a total installed capacity of 565 MW, it
currently supplies about 10% of the country's electricity, and plays
a significant role in supporting the balance of the electric grid and
providing affordable energy. This system is majority owned by Russian
RusHydro Company, one of the largest hydropower companies in the world.
The Vorotan Complex is the second largest hydroelectric power plant
in Armenia. It has three stations with total installed capacity of
404 MW. The first unit came online in 1970 and the last one in 1989.
Armenia's Government is planning to sell the Vorotan Cascade to
ContourGlobal L.P., which is a New York-based independent power
producer. It develops, acquires, and operates electric-power and
district-heating resources primarily in underserved and overlooked
markets worldwide.
System reliability
Reliable and affordable energy supply is critical for economic growth.
The Government has set a target of 5-7 percent GDP growth, which is
expected to result in increased demand for energy resources. Key areas
of economic growth include the industrial, as well as the commercial,
and retail services sectors. These sectors accounted for 45 percent of
GDP in 2011 and have been the largest contributors to GDP growth in
the past two years. These sectors are energy-intensive, accounting
for 81 percent of non-residential electricity consumption and 51
percent of total domestic consumption.
Old transmission and distribution infrastructure contributes to energy
security problems. Transmission infrastructures are, on average,
more than 45 years old and require rehabilitation. Roughly 33
percent, or 520 km of power lines are in poor condition and require
urgent rehabilitation at a cost of $80-100 million. Old, inefficient
electricity generation infrastructure exacerbates Armenia's energy
security problem. Available capacity of domestic hydropower resources
is lower than their installed capacities and old thermal power plants
make inefficient use of valuable imported fuels.
The country's heavy reliance on imported natural gas to generate
much of its power makes the sector susceptible to fuel supply
interruptions. Inefficient generation, transmission, and distribution
infrastructure means that the power sector must use more imported
fuel to provide the same level of electricity service than it would
if this infrastructure were more efficient.
Energy generating companies
Currently there are four energy generating companies in Armenia
which produce more than 80% of electricity in the country. These are
the Armenian Nuclear Power Plant (the total gross output capacity of
407.5 MW), RazTES (the gross output capacity is 1,110 MW, functioning
output capacity is 760 MW), the Sevan-Hrazdan Cascade Hydroelectric
Power Plant (gross output capacity - 550 MW), and the Vorotan Cascade
Hydroelectric Plant (gross output capacity 400 MW).
Renewable energy resources
Armenia is planning to diversify its electricity generation and fuel
supply sources by exploiting domestic renewable resources. Significant
renewable energy potential exists, but the government has struggled
to attract private investors for non-hydro renewable projects. It is
estimated that Armenia has more than 1,000 MW of technically viable
capacity from solar photovoltaic (PV), 300-500 MW from wind, 250-350
MW from unexploited small HPPs and 25 MW from geothermal. There is
also potential for producing roughly 100,000 tons per year of biofuel
from local plants to be used as gasoline additive.
Electricity trade with neighboring countries
The government of Armenia has negotiated electricity trade agreements
with Iran and Georgia to improve energy security and affordability.
Armenia negotiated a gas-electricity swap arrangement with Iran under
which it exports 3 kWh of electricity in exchange for 1 m3 of gas
from Iran. Trade with Georgia is limited because of an asynchronous
connection between the two systems. In the short-term, increased
trade with Georgia would allow Armenia to export its excess hydropower
generation during spring and summer to Turkey via Georgia. In the long
term, if Armenia builds a new nuclear plant, additional transmission
capacity will be needed to export electricity from the plant because
the planned nuclear plant will be significantly larger than what is
needed for domestic demand. If Armenia does not build a new nuclear
plant, additional transmission interconnection capacity could help
Armenia to meet its supply gap with relatively cheap hydropower
imports from Georgia.
From: Baghdasarian
by Areg Gharabegian
http://www.reporter.am/go/article/2013-10-08-electricity-production-in-armenia
Published: Tuesday October 08, 2013
Decommissioning of the nuclear power plant in Metsamor has been
postponed to 2021. Photolure
Related Articles
Renewable energy assessment for Armenia
Water issues in Armenia
YEREVAN - Electricity production in Armenia has fully recovered from
major problems it was facing in early 1990s and is now a reliable
industry.
Armenia's energy issues started after the 1989 earthquake when the
government of Soviet Armenia was forced to close the Metzamor nuclear
power plant in 1990 under mounting pressure from a public that was
concerned about safety issues related to the plant, fearing a Chernobyl
type catastrophe. In 1987, people in Armenia started demonstrating
against Soviet rule. After the devastating earthquake of 1989, some
activists started demanding the closure of Metzamor nuclear plant as
well as the Nairit chemical and rubber producing complex.
Shutting down the nuclear plant was the worst mistake of the recent
Armenian history.
Had the nuclear plant not been closed, Armenia would not have plummeted
in to the dark ages and as a result would have not lost one third of
its population to forced economic immigration. After more than 20
years, Armenia still has not recovered from the devastation caused
by these closures.
Even though Armenia had excess electricity production in 1988 and
was exporting electricity to other Soviet Republics, shutting down
about 1/3 of electricity production capacity of a country was bound
to have some negative impact on industry and economic wellbeing.
However, the main electricity production problems started only after
the Soviet Union's collapse, independence of Armenia, and subsequent
war over Karabagh with Azerbaijan. Because Armenia does not have
oil or gas it had been relying on gas and oil imports from Russia to
operate its thermal power plants. Gas was being delivered via pipeline
and oil via train, both traversing Azerbaijan. When as a result of
the war, Azerbaijan imposed a blockade; Armenia was cut off from
its gas and oil supplies. Due to the lack of required fuel, thermal
power plants were shut down and Armenia had to rely only on its hydro
power production from the Sevan-Hrazdan and Vorotan cascades. These
two hydro power cascades were not operating at full capacity because
required parts could not be delivered from Russia via train that had
to go through Azerbaijan. Industrial production ceased due to the
lack of electricity and fuel, resulting in the economy's collapse.
Armenia's energy sector has seen tremendous change in the last two
decades. Restarting the second unit of the nuclear power plant in
1995 helped bring an end to the energy crisis. The availability of
electricity service has increased from just a few hours a day from
two decades ago to 24 hours a day. Electrical production companies
have emerged from heavy dependence on state funding to commercial
viability. However, the same issues that caused the collapse of the
system in the mid-90s still exist; Armenia still relies on imported gas
and oil for its energy production. A majority of the gas is imported
from Russia via a pipeline through Georgia and a small amount of gas
is being imported from Iran also via a pipeline. Gasoline and heavy
fuel oil are delivered from Russia via tanker trucks. Uranium for
operating the nuclear power plant is also imported from Russia.
Armenia's electricity system has 3,914 Mega Watt (MW) of installed
capacity, of which only 73 percent or 2,845 MW is currently
operational. Electricity is produced by three generation sources:
nuclear (34 percent), thermal (32 percent), and hydropower (34
percent). The share of thermal and hydropower plants in the capacity
and production mix has increased in recent years because new plants
have been built and Armenia has experienced weather conditions over the
past several years that have been favorable for hydro power production.
The Metzamor nuclear power plant provides base load capacity. The
Vorotan and Sevan-Hrazdan Cascade hydro power plants provide daily
load regulation, while thermal power plants operate to meet winter's
peak demand and to serve as the base load a few weeks in fall when
the nuclear power plant goes offline for maintenance.
Thermal Power Plants
The main thermal power plant complexes are in Hrazdan and Yerevan. The
original equipment at these two gas-fired plants has worked beyond
the 200,000 work hour design life and does not meet international
technical, economic, and environmental performance standards. These
plants have not undergone necessary capital improvements in recent
years and operations and maintenance have been consistently
under-funded. The plants run on outdated Soviet technology and
obtaining spare parts for maintenance is difficult and costly because
the equipment is no longer manufactured.
The construction of the Hrazdan thermal power plant was started in 1963
with a total capacity of 1,110 MW. The first unit became operational
in 1966. The fuel efficiency of Hrazdan thermal power plants is 35
percent compared to 57 percent for a new, efficient thermal power
plant. In 2004 Armenia transferred the Hrazdan thermal power plant
complexes to the Russian Federation as a means of satisfying certain
state debts. ArmRusGasprom, the Russian owner of the Hrazdan complexes
has recently completed construction of a new 440 MW Hrazdan 5 thermal
power plant which is an efficient plant meeting today's operational
standards.
The first of seven turbines of the Yerevan thermal power plant with
a capacity of 50 MW began operation in 1963. The totaled installed
capacity of Yerevan thermal power plant complex is 550 MW but today
only one of the older generating units remains operational with
capacity of approximately 50 MW. This complex has operated for more
than 40 years, although the lifespan of thermal power plants throughout
the world is 30 years. A new 240 MW combined cycle gas turbine at
the Yerevan thermal power plant complex came online in 2010 which
was constructed with a $247 million loan from the Japanese Bank for
International Cooperation. The loan was given in 2007 with an interest
rate of 0.75%, and a 40-year term, with a 10-year grace period.
This gas-powered turbine is able to generate approximately one-quarter
of Armenia's current electricity output. This unit is also twice as
efficient as the plant's decommissioned units. The new plant was
constructed with an aim to reduce the generation cost of 1 KW/hr
electricity from the current 400 drams to 160-170 drams. Construction
of the second and third power plants on the same site is being
considered by the Government of Armenia.
There are also two other small plants in Armenia. The Yerevan
Thermoelectric Plant has only one turbine with capacity of 50 MW and it
produces electricity, steam, and heat mainly for the Nairit Chemical
Plant. The Vanadzor Thermoelectric Plant, with a capacity of 50 MW,
is presently not operating and will be operated only if the Vanadzor
chemical complex becomes operational.
Nuclear Power Plant
The Metzamor nuclear power plant was built during the 1970s, about 19
miles west of Yerevan. The total capacity of the two units at Metzamor
is close to 800 MW but only one of the units is operational. The plant
is one of just a few remaining nuclear power reactors in the world
that were built without primary containment structures. The plant has
been operated by a Russian company, Inter RAO UES since 2003, as part
of an agreement to help pay off Armenia's debts to Russia. The 400
MW operational unit is beyond its 30 year design life and scheduled
for decommissioning in 2021.
Armenia will face a major supply-demand gap once the nuclear power
plant is retired and that is the reason why the government of Armenia
is trying to secure financing to build a new nuclear power plant
which is estimated to cost approximately $4 billion.
Hydro Power Plants
Historically, hydropower has constituted a large part of Armenia's
electrical energy production resources. There are two large hydropower
cascades, Sevan-Hrazdan and Vorotan that have a combined installed
capacity of approximately 960 MW. As of 2012, there were more than
110 commercial size small hydropower power plants (SHPP) operating in
Armenia. About 60 of these have been developed and constructed in the
past 10 years. There are also numerous small units (micro) that are
operated by individuals to satisfy their own electrical needs. The
forecast is that SHPP generation would grow from its current 5%
penetration level of the total electricity generation to 10% within
the next 10 years.
The Sevan-Hrazdan Cascade Hydropower System is one of the most
important hydropower generation assets in Armenia. It was built
between 1936 and 1961. The system consists of seven run-of-the-river
hydropower stations, canals, and reservoirs between Lake Sevan and
the City of Yerevan. With a total installed capacity of 565 MW, it
currently supplies about 10% of the country's electricity, and plays
a significant role in supporting the balance of the electric grid and
providing affordable energy. This system is majority owned by Russian
RusHydro Company, one of the largest hydropower companies in the world.
The Vorotan Complex is the second largest hydroelectric power plant
in Armenia. It has three stations with total installed capacity of
404 MW. The first unit came online in 1970 and the last one in 1989.
Armenia's Government is planning to sell the Vorotan Cascade to
ContourGlobal L.P., which is a New York-based independent power
producer. It develops, acquires, and operates electric-power and
district-heating resources primarily in underserved and overlooked
markets worldwide.
System reliability
Reliable and affordable energy supply is critical for economic growth.
The Government has set a target of 5-7 percent GDP growth, which is
expected to result in increased demand for energy resources. Key areas
of economic growth include the industrial, as well as the commercial,
and retail services sectors. These sectors accounted for 45 percent of
GDP in 2011 and have been the largest contributors to GDP growth in
the past two years. These sectors are energy-intensive, accounting
for 81 percent of non-residential electricity consumption and 51
percent of total domestic consumption.
Old transmission and distribution infrastructure contributes to energy
security problems. Transmission infrastructures are, on average,
more than 45 years old and require rehabilitation. Roughly 33
percent, or 520 km of power lines are in poor condition and require
urgent rehabilitation at a cost of $80-100 million. Old, inefficient
electricity generation infrastructure exacerbates Armenia's energy
security problem. Available capacity of domestic hydropower resources
is lower than their installed capacities and old thermal power plants
make inefficient use of valuable imported fuels.
The country's heavy reliance on imported natural gas to generate
much of its power makes the sector susceptible to fuel supply
interruptions. Inefficient generation, transmission, and distribution
infrastructure means that the power sector must use more imported
fuel to provide the same level of electricity service than it would
if this infrastructure were more efficient.
Energy generating companies
Currently there are four energy generating companies in Armenia
which produce more than 80% of electricity in the country. These are
the Armenian Nuclear Power Plant (the total gross output capacity of
407.5 MW), RazTES (the gross output capacity is 1,110 MW, functioning
output capacity is 760 MW), the Sevan-Hrazdan Cascade Hydroelectric
Power Plant (gross output capacity - 550 MW), and the Vorotan Cascade
Hydroelectric Plant (gross output capacity 400 MW).
Renewable energy resources
Armenia is planning to diversify its electricity generation and fuel
supply sources by exploiting domestic renewable resources. Significant
renewable energy potential exists, but the government has struggled
to attract private investors for non-hydro renewable projects. It is
estimated that Armenia has more than 1,000 MW of technically viable
capacity from solar photovoltaic (PV), 300-500 MW from wind, 250-350
MW from unexploited small HPPs and 25 MW from geothermal. There is
also potential for producing roughly 100,000 tons per year of biofuel
from local plants to be used as gasoline additive.
Electricity trade with neighboring countries
The government of Armenia has negotiated electricity trade agreements
with Iran and Georgia to improve energy security and affordability.
Armenia negotiated a gas-electricity swap arrangement with Iran under
which it exports 3 kWh of electricity in exchange for 1 m3 of gas
from Iran. Trade with Georgia is limited because of an asynchronous
connection between the two systems. In the short-term, increased
trade with Georgia would allow Armenia to export its excess hydropower
generation during spring and summer to Turkey via Georgia. In the long
term, if Armenia builds a new nuclear plant, additional transmission
capacity will be needed to export electricity from the plant because
the planned nuclear plant will be significantly larger than what is
needed for domestic demand. If Armenia does not build a new nuclear
plant, additional transmission interconnection capacity could help
Armenia to meet its supply gap with relatively cheap hydropower
imports from Georgia.
From: Baghdasarian