Regulator gives electricity generation license to ``Seka`` small HPP

ArmInfo. Public Services Regulatory Commission (PSRC) has provided electricity generation license to ''Seka'' small hydro power plant at the meeting on December 21.

According to the PSRC statement construction of the Seka small HPP started in 2015 and was finished within the set terms-by December 21 2016. The installed capacity of the HPP is 1120 KWh. VAPTECH turbine and a SF-500M6 generator have been installed in the plant. The Commission has also released Ardshinbank from security deposit amounting to 2.6 mln drams. By another decision the tariff for the HPP was also set, which totals 28.504 drams for 1KWh (including VAT).  As ArmInfo was informing earlier referring to the press service of the Ministry of Energy Infrastructures and Natural Resources the scheme of development of small hydro power plants will be revised according to the Prime Minister's instruction.

According to Head of Renewable Energy and Energy Saving Department of the Ministry of Energy Infrastructures and Natural Resources Hayk Badalyan the scheme of small HPP development approved in 2009 has in fact been totally violated. Particularly, there are mismatches between the figures of permissions on water use and the given license.  "Considering this fact a proposal has been made to consider the government decision from January 22, 2009 invalid and to develop new scheme of small HPP development involving specialized organizations if financial resources are available. This decision will not apply to those HPPs that have undergone ecological expertise within the approved investment programs" the Head of the Department mentioned. It was particularly offered to give new permissions on construction of small HPPs on Akhuryan, Dzoraget, Debet, Azat, Arpa and Vorotan rivers.

To note, during the government session on October 27 Prime Minister Karen Karapetyan instructed the Ministry of Energy Infrastructures and Natural Resources, the Ministry of Nature Protection and Public Services Regulation Commission within 15 days to check and present proposals related to providing permissions on water use and licenses on construction of small HPPs. The Prime Minister particularly noted that the scheme of small HPP development approved by the government in January 2009 should be revised.  Proposals should also be developed on reasonability of giving permissions on construction of new HPPs on Akhuryan, Dzoraget, Debed, Azat, Arpa and Vorotan rivers.

To note, building boom of small HPPs in Armenia started in 1999-2000 mainly due to beneficial tariff amounted to 17.2 drams for 1KW/h without VAT. According to the Public Services Regulatory Commission 130 small HPPs had nearly 13 % share in overall electricity output in 2015. The environmental experts have repeatedly stated that small HPPs threaten eco-system.