If Armenia does not enhance generating capacities through thermal energy in the coming 3-4 years the country will face serious shortages of energy, Laura E. Bailey, the Country Manager for Armenia, Europe and Central Asia, said during the June 16 press conference when presenting World Bank experts' report on energy field situation in Armenia.
According to World Bank analysts, the currently operating thermal generating capacities in Armenia are rather cost-consuming and in a poor technical condition. Therefore, it is becoming more and more topical to create a new low-cost-price electric generating unit, especially given that the Armenian NPP operation will be suspended in 2016 for 6 months. According to Artur Kochnakyan, energy economist at World Bank Yerevan office, WB has suggested the Armenian government considering the creation of the aforementioned capacities through governmental-private partnership.
At the same time, he says, the energy field of Armenia is facing some topical tasks whose solution will lead out of the crisis. This applies for the reconsideration of energy rates, the optimization of the latter. The current rate, which keeps increasing, significantly burdens consumers. According to specialists' estimates, the current household expenses make the 10% of consumers' total income. Although experts have not calculated the increasing rates' exact negative effect on the economy and on the level of erosion of purchasing power, it is more than obvious that this factor will affect the economic growth. Rate increase in Armenia resulted in 3% poverty level increase in 2013 alone.
The expert believes that despite the significant investments directed at the reconstruction and modernization of the energy system, the core assets of the field are to be upgraded. It is particularly true for the further reconstruction of high-voltage power network.
To note, the Armenian government is currently negotiating with the Japanese government on raising of loans for the construction of another 200MW steam system power unit at Yerevan TPP.
During June 12 parliamentary hearings minister of Energy and Natural Resources Yervand Zakharyan informed that old capacities were being replaced by new ones. Over the past few years thermal energy has been enriched with 680 MW modern capacities, while the renewable power generation has been enriched by 250 MW capacities.