ALTERNATIVE TO ARMENIA NUCLEAR POWER PLANT

Islamic Republic News Agency
Dec 23 2007
Iran

An alternative to the working nuclear power plant in Armenia may
be only a new one, Armenian Energy Minister Armen Movsesyan said
on Saturday.

The government has not decided yet whom to ask to build a new nuclear
plant, Itar-Tass reported. It is known that the world’s best reactors
are in Russia, the best electric part is European, and the automation
is American, the minister noted.

Some hybrid should be chosen, and the best experience in the world’s
atomic energy should be used, he said. There is no political aspect.

It is only an economic matter, the minister noted.

It is early to say who will build a new power plant, but it is a
fact that there are a lot of those wishing, he said, adding that
it was possible that several countries would set up a consortium —
there is such practice in Bulgaria.

The Armenian NPP will be shut down only when the republic has
equivalent electricity production capacities, Movsesyan stressed.

Work on technical and economic substantiation of a new nuclear plant
will be completed by next September, then searching will begin for an
investor and a contractor. A new plant is expected to work at 1,000-
megawatt capacity.

The agreement on transfer of the Armenian NPP financial and economic
activities to the Russian Unified Energy Systems Company’s Inter RAO
UES will expire next year. Unlike the previous years, nuclear fuel for
the plant was purchased in time during the years, there was no debt
accumulation, and repair and maintenance work was conducted as planned.

"We would like cooperation with Russia in NPP maintenance to be
continued," the minister noted, adding that especially since the
plant was of Russian origin.

The power plant work will be halted next year for major repairs, and
it will be connected to the country’s energy system by next November,
the minister said.

The Armenian nuclear power plant began operating in 1979, but it was
shut down in 1989 after a devastating earthquake. In 1996, it was
reactivated with assistance of Russian specialists, and its second
power unit resumed working. The plant accounts for 40-50 percent of
Armenia’s electricity production.

Meanwhile, the European Union insists on shutdown of the nuclear
plant located 40 kilometers west of Yerevan. Armenian authorities
say shutdown of the plant is possible only when there are alternative
energy sources.

The minister said a joint company with Russia was being set up to
prospect for uranium deposits in Armenia. According to his forecast,
uranium production may begin in two or five years.