Eurasianet Organization
April 26 2005
A REAL FIX: ARMENIA’S ENERGY SITUATION
Paul Rimple 4/26/05
Photos by Sophia Mizante
It was 19 years ago on April 26 that a reactor at the Chernobyl
nuclear power plant in Ukraine exploded, spewing radiation across
Europe. The anniversary of the tragedy helps to focus attention on
Armenia’s energy dilemma, in which the country depends heavily on an
antiquated nuclear facility to meet its power needs.
Armenia’s Metsamor Nuclear Power Plant, situated near geological
fault lines, is responsible for generating about 40 percent of the
electricity used by Armenians every year. A lack of access to
alternate power sources is a major factor in the country’s ongoing
dependence on the nuclear facility. The economic blockade maintained
by two of Armenia’s neighbors — Turkey and Azerbaijan – hampers the
large-scale import of fuel, while the country’s lack of water
resources limits hydro-electric power-generating capacity.
The only nuclear energy source in the South Caucasus, Metsamor lies
just 28 kilometers outside of Yerevan, 16 kilometers from the Turkish
border, 60 kilometers from Iran and less than 150 kilometers from the
Georgian and Azerbaijani borders. Built in mid 1970s, the
twin-reactor station was closed in early 1989 following the
earthquake late the previous year that left an estimated 25,000
people dead. The plant itself withstood tremors measuring 5-6 on the
Richter scale. The Metsamor reactors are of the Soviet design known
as VVER, considered marginally more structurally sound than the
Chernobyl-type reactors, or RBMKs. Still, Armenian officials felt
compelled to take no operational chances following the 1988
earthquake.
Immediately following the closure, Armenia fell into a period known
as “the dark years,” when an energy shortage became acute. To heat
their homes during the winter, residents stripped the capital Yerevan
of virtually everything made of wood, leaving few trees standing.
Meanwhile, Lake Sevan, which was already suffering from Soviet-era
ecological damage, was further drained to compensate for energy
shortages.
In October 1996, Unit 2 at Metsamor, a 440-megawatt reactor, resumed
operation with Western financial assistance for safety upgrades. In
2003, Russia’s state-run power monopoly RAO Unified Energy Systems
(UES) assumed responsibility, through a subsidiary, for running the
Metsamor plant in return for Moscow’s cancellation of $40 million in
debt. [For additional information see the Eurasia Insight archive].
The city of Metsamor, four kilometers from the plant, was built
essentially to house the power station’s employees. When the plant
closed in 1989, the majority of the population suddenly became
unemployed, and many people were forced to leave the area to search
for work elsewhere. Today, roughly 20 percent of Metsamor’s 10,000
residents work at the nuclear plant. Locals have mixed feelings about
the risks; some feel there is no danger at all and are grateful for
the economic opportunity that the nuclear plant provides; others
mistrust authorities’ safety assurances and worry about the radiation
risks. Still others accept the risks, while desiring compensation for
assuming them, including free electricity.
One added hazard, not only for locals, is that nuclear waste must be
stored on site because of the Turkish-Azerbaijani blockade.
Additionally, fuel must be flown in from Russia – over Georgian
airspace. At the same time, Georgia indirectly benefits from
Metsamor’s operation, as the nuclear facility’s generating capacity
enables Armenia to export up to 150 megawatts of electricity daily
from the Razdan thermoelectric plant to Georgia.
European diplomats remain concerned about Metsamor’s operation. The
European Union — along individual Western governments, the World
Bank and the International Atomic Energy Agency (IAEA) — have
pressed the Armenian government to shut Metsamor down. While the EU
had originally given millions of euros in aid for safety upgrades,
the grouping of European states froze a 100 million-euro energy grant
in June 2004, citing Yerevan’s continuing reluctance to close the
plant.
Shutting down is not so simple. Besides the exceedingly high cost of
closure, estimated by some as high as $1 billion, Armenia has lacks
the natural resources and the funds to fully develop alternatives.
Meanwhile, local and Russian experts believe Metsamor can safely
function until 2016, due to strengthened security systems that take
into account the possibility of another earthquake. Some experts,
citing upgrades made at similar Russian nuclear facilities, suggest
that Metsamor could remain operational until 2031.
Despite a funding shortage, Armenia has made some progress in
securing energy alternatives, including an agreement on the
construction of an Armenian-Iranian pipeline project. [For background
see the Eurasia Insight archive]. The government has also set aside
funds in the state budget to promote the use of solar energy. Panels
can be randomly seen on Yerevan rooftops, including the American
University in Armenia. Meanwhile, recent surveys suggest that wind
power could potentially generate 400-500 megawatts of electricity –
about one-third of Metsamor total output. The first wind power
station, built with Iranian financial assistance, is scheduled to go
into operation in the Pushkin Mountain Pass in 2005. It will have an
estimated annual capacity of 5 million kilowatt/hours.
Editor’s Note: Paul Rimple is a freelance writer based in Georgia.