ArmInfo. Discussions on energy power market liberalization and international trade support started in Armenia. This was stated by the press office of the Ministry of Energy Infrastructures and natural resources.
According to the source, after the Government decision taken on July 29. 2016, the Ministry of Natural Resources of Armenia within the United States Agency of International Development ( USAID) suggested its actions plan to all the stakeholder parties.
To mention, after summarizing the Program in the first semester of 2017, the Document will be submitted for the Government approval. According to Areg Galstyan, the Advisor to the Minister and Ex Deputy Minister, a simultaneous work is being carried in respect to amendments to the Law on Energy. "This will secure the transition to the market liberalization," Areg Galstyan accentuated, expressing the opinion that the electric power framework of the Republic today needs a rapid liberalization and improvement, within the purpose of foreign trade implementation in respect to neighbor countries. For that, the Deputy Minister went on, the country has appropriate preconditions capsulated recently. Despite the competitive options at the market are still restricted, and there is an essential difference in the tariff for power generation objects, these factors should not be considered as the obstacles to reject the sole buyer model. The capsulation of a single competitive market is pretty feasible.
The Public Services Regulating Commission has already approved the Concept of new tools implementation in respect to the improvement and coordination of electric power engineering framework. It is planned to set the limits and tools of liability both for producers and consumers of the energy. For today, neither power generating entities nor consumers carry responsibility for the volumes of generation and consumption (ordered capacities). And the responsibility for actually produced and used volumes of the power should become one of the point of best international practives. According to Areg Galstyan, the electric power market liberalization will make an immediate impact on the tariffs. "We expect that the implementation of competitive elements will promote the tariffs decrease. Under these conditions every participant of the market will try to decrease own costs to occupy the most comfortable position at the market and to sell own production," Deputy Minister has stated earlier. To remind, in Jan 2017 the electric power output in Armenia grew by 13.6% versus Jan 2016, totaling 775.6 mln kWh.
The National Statistics Service of Armenia reports that in Jan 2017 versus Jan 2016 the thermal power plants increased electric power output by 43.9% y-o-y to 353.1 mln kWh. The hydropower plants decreased output by 9.1% to 2351.4 million kWh. The electricity generated by the Armenian Nuclear Power Plant made up 140.7 million kWh (down 14.6% versus Jan 2016). Over the period under review, 31.2 thsd GJ of thermal power was generated (10.6% y-o-y rise). Other sources generated 0.3 mln kWh of electric power (down 25% versus Jan 2016).
To note, throughout 2016 electric power generation in Armenia dropped by 6.2% and totaled 7315.2 mln kWh. Thermal power plants decreased the output by 7.8%, while the hydropower plants increased the electricity output by 6.6%. The Armenian Nuclear Power Plant reduced the output by 14.6%. Thermal power generation dropped by 43.7%.