New nuclear power plant in Armenia
“The construction of a new nuclear power plant in Armenia has entered a critical phase”, said Armen Grigoryan, the Secretary of the Security Council. And added: “Now it’s the USA’s turn.”
When asked to clarify this remark, Deputy Minister of Territorial Administration and Infrastructure Hakob Vardanyan stated that Armenia is currently creating the necessary legal and contractual framework for discussing the possible placement of American energy facilities in the country.
Vardanyan said that this was the intention of the Security Council Secretary.
He noted that the United States had invited Armenia to join an agreement called “1, 2, 3.” Only after the ratification of this document would American companies be able to cooperate with Armenia in the field of nuclear energy.
“We are currently in the internal approval process. Once we join this agreement, we will have a real opportunity to discuss the placement of American energy units here.“, explained Vardanyan.
The Armenian government is currently actively discussing the construction of a new nuclear power plant, as the current Metsamor Nuclear Power Plant will reach the end of its operational life in 12 years.
Energy experts and developers laid the foundation stone for Armenia’s nuclear power plant in 1969, and the first unit went into operation in 1977. Since then, Russia has been involved in extending the plant’s operating life and modernizing it. However, Yerevan is currently examining the possibility of building a new nuclear power plant in talks with other countries, particularly the United States.
Armenia’s energy needs and the cost of meeting them
Given Armenia’s domestic consumption data, a capacity of 600 megawatts would be the most optimal for the country, said Deputy Minister of Territorial Administration and Infrastructure Hakob Vardanyan.
“Currently, a capacity of 600-700 megawatts is sufficient for Armenia. This is crucial to ensure that nuclear energy does not hinder the development of renewable energy sources in the country.”, said Vardanyan.
Costs will play an important role in the decision-making process. Armenia has already received several proposals, the details of which remain confidential for privacy reasons.
“The cost per kilowatt hour of installed capacity could range from $4,000 to $20,000. Armenia will follow standard financing procedures. If the state acts as both a customer and a buyer, the financing will come from the country supplying the nuclear technology.“, explained Vardanyan.
Armenia prefers small modular reactors for nuclear energy
In Armenia, small modular reactors are considered more attractive than large-scale plants. According to the Deputy Minister of Territorial Administration and Infrastructure, large reactors could pose technical challenges for the country’s energy system.
“We only experience peak demand of 1,000 to 1,200 megawatts at certain times of the year. Operating a 1,200 megawatt power plant can be quite complex and problematic, sometimes even impossible.”, he noted.
To ensure system stability, backup power sources must also be available for maintenance and emergency outages.
Hakob Vardanyan explained that small modular reactors have enhanced safety features and are more earthquake-resistant than larger reactors.
Three important partners: USA, Russia and South Korea
According to the Deputy Minister of Territorial Administration and Infrastructure, active discussions about the future nuclear power plant are currently underway between the United States, Russia and South Korea.
Chinese and French companies have also shown interest.
However, the decision also takes into account which countries have recently been most active in building nuclear power plants.
“There are three main players: Russia, China and South Korea. China has built the most nuclear power plants, but all on its own territory. Russia and South Korea have and are building in other countries in addition to their own territories, with Russia doing slightly more and South Korea doing slightly less.”, he explained.
New company to oversee construction of Armenian nuclear power plant
In early August, the Armenian government decided to establish a new company to manage the construction of the new nuclear power plant.
The company, a closed joint-stock company, will be established in accordance with the guidelines of the International Atomic Energy Agency and will operate under the jurisdiction of the Ministry of Territorial Administration and Infrastructure.
This company will make the final decision on which offer to accept, which technology to use and what capacity the new plant will have. It has two years to make this decision.
“There are many factors to consider: not only capacity, but also construction times, licenses, safety, long-term operation and fuel. As a landlocked country, we face many restrictions related to importing goods. Both the Russian and American proposals are extensive and run into thousands of pages. We need to analyze these documents and choose the best option for Armenia.”, said Hakob Vardanyan.
