ARMENIA HAS NO ALTERNATIVE TO NEW NUCLEAR-POWER UNIT BEFORE 2016

Arka News Agency, Armenia
April 11 2007

YEREVAN, April 11/ ARKA/. Armenia has no alternative to the
construction of a new nuclear-power unit before 2016, RA Deputy
Minister of Energy Areg Galstyan stated at the lecture "On prospects
for developing Armenia’s energy sector".

"A long-term assessment of the uptrend in natural gas prices until
2025-2030, as well as possible rates of rise in prices for nuclear
fuel, shows that Armenia practically has no alternative to the
construction of a new nuclear power unit," hen said.

Galstyan pointed out that special attention is paid to the development
of atomic energy in Armenia.

As part of the New European Neighborhood Policy, Armenia pledged
to shot down the currently operating nuclear power unit as soon as
possible, but on condition of construction of a new power unit of
identical capacity in Armenia.

According to the Minister the creation of the capacities is aimed at
ensuring Armenia’s energy independence.

"All the measures to put the power unit out of operation must not
affect the development of Armenia’s energy sector and economy,"
he said.

The calculations based on the estimates of domestic demand and possible
enhancement of the export potential testify that in 2016 Armenia will
nee a power unit with a capacity of 1,000 megawatts, and the second
power unit is likely to be constructed after 2020, Galstyan said.

The construction of the new power unit is estimated at $2bln.