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(October 2009)
Armenia has a population of 3.2 million. Natural gas is its main source of energy. Nuclear power from the single small reactor supplied 43.5% of the country's electricity in 2007 - 2.35 billion kWh net. Of the 5.9 billion kWh gross generation in 2006, nuclear supplied 44%, hydro 31% and gas 25%. Electricity consumption per capita is about 1700 kWh/yr.
Nuclear power
One Russian VVER-440 nuclear power plant operates at Metsamor, 30 km from the capital Yerevan.
Two V-230 reactors each of 407.5 MWe (gross) were built there on solid basalt and supplied power from 1976 and 1980 respectively. Design life was 30 years. These were the first Russian plants designed to be built in a region of high seismicity and were modified accordingly to be designated V-270, giving 376 MWe net. Plans for units 3 & 4 at the site were abandoned after the Chernobyl accident.
In December 1988, a powerful earthquake, resulting in the deaths of at least 25,000 people, occurred in northwestern Armenia. The Metsamor nuclear power plant 75 km from the epicentre continued operating normally with no damage, but both units were subsequently shut down in 1989 due to safety concerns regarding seismic vulnerability.
Unit 1, after 13 years operation, is now being decommissioned. In 1993 it was decided to restart the second unit due to the severe economic crisis and this was achieved in 1995, after 6.5 years shutdown. Since then the IAEA has been participating in safety improvements at the plant, which is now scheduled to close in 2016.
All fuel is supplied by Russia, but this has incurred significant foreign debt. As a result, the plant has been operated by a subsidiary of RAO UES and Rosenergoatom since 2003, as part of a five year arrangement to help pay off those debts. This agreement, now with Inter-RAO, was extended by five years in 2008.
The present Metsamor plant is a concern to the EU and to neighbouring Turkey, 16 km away. There have been various calls to shut it down, but Armenia is very dependent on it and has said that it will remain open until a replacement is commissioned. In November 2007 it was reported that a shutdown plan had been agreed (for 2016?), at cost of $280 million.
New nuclear plant
In 2007 Russia offered to build a new 1000 MWe nuclear power plant in Armenia in return for minority ownership of it. The energy minister announced a feasibility study for a new unit at Metsamor, which plant would cost some US$ 2 billion. The investigation was carried out with Russia, the USA and the IAEA. The USA has expressed willingness to help build a new plant to go on line about 2016, and the figure of $3 billion has been mentioned for 1000 MWe.
In February 2009 the government announced a tender for a new 1000 MWe unit at Metsamor, which it expected to cost about $5 billion all up. As well as Russia, Turkey was invited to tender, “to help stability in the region.” In May 2009 Worley Parsons was chosen to administer the project, and a $460 million management contract was signed in June.
In June 2009 the government passed legislation providing for construction of up to 1200 MWe of new nuclear capacity at Metsamor from one or more reactors. Parliament approved a new unit of 1200 MWe in October 2009 on the basis of projected cost of US$ 4 to 5 billion. Construction is due to begin in 2011-12, with commissioning by 2017.
Fuel cycle
The government has signed an agreement to become a partner in the international uranium enrichment centre at Angarsk in Siberia, under Russian leadership and IAEA supervision, from 2013. Kazakhstan is also a partner in it.
Russia is also participating in a 50-50 joint venture Armenian-Russian Mining Company with ARMZ to explore for uranium in Armenia. This is at least expected to provide for the country's domestic needs, and export of surplus is a hope. Some resource figures are expected to be announced in 2010.
Regulation
In 1993 the government established a new body under the Ministry of Energy to operate the plant, and in 1996 this was taken over by Armenian NPP (ANPP) joint stock company.
Also in 1993 the Armenian Nuclear Regulatory Authority (ANRA) was established as regulator. In 1996 the Department of Atomic Energy was established within the Ministry of Energy.
Armenia has been a member of the International Atomic Energy Agency since 1993, and of WANO since 1996.
Armenia has been a party to the Nuclear Non-Proliferation Treaty since 1993, and in 1997 signed the Additional Protocol on its safeguards agreement with IAEA. It has been party to the Vienna Convention on civil liability for nuclear damage since 1993.