40% OF ELECTRICITY TO BE PRODUCED BY NUCLEAR POWER SECTOR IN ARMENIA BY 2025

ARKA
Feb 24, 2009

YEREVAN, February 24. /ARKA/. Armenia is to get 40% of its electricity
produced by the nuclear power sector by 2025, Armenian Deputy Minister
of Energy and Natural Resources Areg Galstyan said at a round-table
discussion with a Russian delegation from Sverdlovsk.

By the same time, renewable energy sector will be providing 30%
of energy produced in Armenia with the remaining share provided by
thermal radiation power sector, he said.

Galstyan reported that for this a number of strategic documents
were adopted based on four principles – nuclear power development,
maximal use of own renewable resources, diversification of routes of
energy resource supplies and maximal integration in regional energy
markets. He added that Armenia has also the obligation to close down
its current nuclear power plant (NPP).

Galstyan reported that a tender was announced for management of the
NPP closing-down process and a feasibility study was conducted.

The country is also taking measures to attract foreign investors in
its renewable energy sector, he said.

Midget power plants are expected to provide 5% of the overall volume
of energy produced in Armenia. Achievements in wind power sector are
less tangible, yet several licenses were issued for this activity,
Galstyan said.

The Deputy Minister said that Armenia is making attempts to move
forward also in=2 0development of geothermal power plants. In
particular, territory is assigned for construction of such a plant
and the issue is to be settled by the end of the year.

Armenian is underdeveloped in terms of biogas production, waste
recycling and wastewater treatment.

Energy savings field is also in its initial stage despite the
respective strategy developed by the government. Yet, use of energy
saving technologies will help Armenia save up to 15% of primary energy
resources, Galstyan said.

The Deputy Minister also reminded that Armenia had the most developed
export-orientated energy system in the South region and that it was
exporting 30% of its energy production. This structure is maintained
in Armenian energy sector despite the hard period.

"Our energy sector is one of the most developed ones both in
institutional and export terms on the post-Soviet area," Galstyan said.

Energy production totaled 6,114.3mln kilowatt-hours in Armenia in 2008,
which is a 3.7% increase against the level of 2007. Energy yield of
Armenian NPP was 2,461.6mln kilowatt-hours in January-December 2008,
which constituted 40.3% of the overall volume of energy production
over the period under period.

Heat stations produced 1,831.9mln kilowatt-hours or 30% of overall
production. Midget power plants generated 1,818.9mln kilowatt-hours
of electricity or 29.8% of the overall yield in the country.