ArmInfo. In 2020, the Ministry of Territorial Administration and Infrastructures of the Republic of Armenia intends to implement a number of legislative initiatives that will allow fully liberalize the energy market of the Republic of Armenia by 2023-2024. The Minister of Territorial Administration and Infrastructures of the Republic of Armenia Suren Papikyan stated this at a press conference on December 23.
, he said.
Summing up the results of 2019, the Minister emphasized that during the current year such programs were implemented that would lead to Armenia becoming an important energy hub in the region. In this regard, he attached importance to the agreement with the German development bank KfW on the announcement of a tender for three lots regarding the construction of power lines with Georgia. According to Papikyan, this will reduce costs and save time on the construction of important infrastructures that will help Armenia become an important transit country in the energy sector in the region.
To note, however, that the North-South energy corridor project, designed to unite the power systems of Iran, Armenia, Georgia and Russia, has encountered a number of problems. The program for the construction of 400-kilovolt power transmission line Iran-Armenia and Armenia-Georgia was to be implemented before the end of 2019. And if the construction of the Iran-Armenia power transmission line was only 25% completed, then the parties have not yet begun to build a similar power transmission line with Georgia. On March 15 last year, the technical commission to improve the reliability and efficiency of the Armenian electric power system approved the terms of reference for the construction of the Armenia- Georgia power transmission line. The terms of reference were developed by the German KfW bank, which finances the program, and FICHTNER, which won the tender to identify the project consultant.
According to the terms of reference, the project is divided into several stages. At the first stage, it was planned to modernize an electric substation with a voltage of 220 kV, build a new substation with a voltage of 400 kV, and also build a new overhead power line to the Georgian border. At the second stage, it was planned to build an electrical substation with a voltage of 500 kV. However, in order to increase the effectiveness of the program, it was planned to use existing electrical substations, the modernization of which is less expensive than the construction of new ones. At the same time, a solar power station will be erected on the existing areas where it was planned to build an electric substation, the construction costs of which will be reduced through the use of existing infrastructures. As a result, the cost of the entire Armenia-Georgia transmission line construction program will be reduced by 30%. Moreover, the construction of a solar power plant will save at least another 20%. At a meeting of the commission, it was noted that the first phase of the project should be completed no later than the third Iran-Armenia power transmission line currently under construction. In general, the Iran-Armenia transmission line construction program should be completed in parallel with the construction of the second power unit of the Yerevan TPP.
As ArmInfo previously reported, sources of financing for the first two stages are already known. The preliminary cost of the Armenia-Georgia power transmission line construction program, according to FICHTNER, is EUR 326.9 million, 10% of which should be part of Georgia's contribution. The first two stages of the program are estimated at 188.2 million euros. To this end, in 2014-2015, three loan agreements were signed. In particular, the German KfW bank allocated 168 million euros in the form of a loan, and another 10 million euros were provided by the European Investment Bank. It is expected to receive another 10 million euros in the form of a grant from the European Commission. As for the Iran- Armenia high-voltage power line, the project is financed by the Iranian side, the total cost of the program is $ 107 million. However, given the new sanctions imposed by the United States against Iran, there is concern about a reduction in the volume of this investment program.