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Official News

Wednesday, 22 July 2015

PM attends presentation of Armenia energy system long-term development program



Prime Minister Hovik Abrahamyan attended the presentation of a program referred to as “Ways of long-term (up to 2036) development of the energy system of the Republic of Armenia.” The Prime Minister welcomed the participants and wished them productive work. Hovik Abrahamyan noted that the country is facing a number of objective problems in the energy sector, and the Government of Armenia is committed to implementing new reforms in this area.

“Together with the United States Agency for International Development, The Government of Armenia has prepared a program of strategic development of the energy system up to the year 2036, which features the opportunities for the development of diversified capacities, including the development of renewable energy and regional integration-oriented infrastructure, the reconstruction of obsolete transmission lines and substations, energy security, as well as other activities to improve the reliability of power supply,” Hovik Abrahamyan emphasized.

The Prime Minister said that unfortunately, the system gas been facing financial bottlenecks in recent years due to a number of objective reasons. According to Hovik Abrahamyan, the global economic crisis, the negative impact of inflation, currency fluctuations, adverse climatic conditions are among the factors that have led to financial problems in the energy system.

“We are implementing a series of measures aimed at the financial recovery of the system, which implies review of market structure and tariff methodology,” the Prime Minister noted.

The Head of Government said that tariff formation principles and mechanisms are being reconsidered to achieve a realistic energy balance. Work is underway to upgrade the energy system, enhance investment efficiency and quality of services provided to users, modernize the electric power metering system and reduce losses. The Premier expressed the hope that the aforementioned activities will have a positive impact.

“In order to maintain the current level of energy security in the country, the Republic of Armenia will continue to develop nuclear energy. To this end, we have decided to extend by 10 years the lifetime of the third unit of the Armenian NPP. Efforts are underway in thos direction. A relevant financial agreement has been signed and subsequently ratified by the National Assembly of the Republic of Armenia. At the same time, negotiations are being held with potential investors over the construction of a new nuclear power unit in Armenia,” Hovik Abrahamyan advised expressing confidence that the discussions will lead to a number of useful proposals and development projects, which will be considered by the Government of the Republic of Armenia.

During the event, Minister of Energy and Natural Resources Yervand Zakharyan and Deputy Minister Areg Galstyan gave the details of Armenia’s long-term energy sector development program with reference to planned activities.

The presentation was attended by MPS, heads of stakeholder agencies, ambassadors, representatives of international financial institutions and NGOs, etc.
 

 

 

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