WB loan to enable reconstruction of three electric power substations 

ArmInfo.  The World Bank loan funds will be used to support the program for the implementation of universal health care in Armenia. The draft law of the Republic of  Armenia between the Republic of Armenia and the  International Bank for Reconstruction and Development> (IBRD) was  approved by the Government of Armenia on September 12.

As stated in the supporting document, the loan agreement for $40  million was signed between the Republic of Armenia and the IBRD on  August 8 and 6, 2024, in the amount of $40 million. Within the  framework of the agreement, it is planned to reconstruct the  substations 220/110/10 kV, 220/110/10 kV and  220/110/35 kV.

It is noted that the substation 220/110/10 kV was built  in 1964. The installed capacity of the substation is 250 MVA. The  substation with an operating voltage of 220/110/10 kV was  built in 1978. The installed capacity of the substation is 375 MVA.  The substation 220/110/35 kV was built in 1966. The  installed capacity of the substation is 126 MVA. Most of the  substation equipment has been in operation for over 40 years. The  relay protection and automation equipment used is not only outdated  and worn out, but also lacks the properties inherent in modern  microprocessor technology. The reinforced concrete structures of the  substations have become unusable during their operation for more than  40 years, and the cable trenches, being in extremely poor condition,  do not provide waterproofing of the cables, which in turn leads to  the destruction of the insulation layer of the cables and the  occurrence of accidents. The said substations are of crucial  importance in terms of ensuring safe and reliable power supply to the  general energy system of the Republic of Armenia.

The objectives of the reconstruction of substations are: -  re-equipment, modernization of the energy infrastructure and  implementation of works on equipping with advanced technologies, -  reduction of the number of emergency shutdowns due to equipment  failure and the duration of emergency response, increase in the  reliability and stability of the power system.

Re-equipment and modernization of substations will help to reduce the  accident rate of the electric power system, increase the reliability  of power supply, and reduce the costs of operation and maintenance of  substations.

The objectives of the reconstruction of substations are: -  re-equipment, modernization of the energy infrastructure and  implementation of works on equipping with advanced technologies, -  reduction of the number of emergency shutdowns due to equipment  failure and the duration of emergency response, increase in the  reliability and stability of the power system.

Re-equipment and modernization of substations will help to reduce the  accident rate of the electric power system, increase the reliability  of power supply, and reduce the costs of operation and maintenance of  substations.

The project aims to facilitate the integration of an estimated 1.1 GW  of renewable generation capacity into the transmission grid by 2032,  which is enough to supply electricity to more than 690,000  households. This will reduce annual net greenhouse gas emissions by  540,000 tonnes. In addition, the program plans to attract private  investment totaling $550 million, upgrade all transmission  substations with automated control systems and digital protection,  and increase the total substation capacity from 2,711 megavolt-  amperes (MVA) to 3,109 MVA. These efforts are part of a comprehensive  strategy to scale up renewable energy, minimize environmental  impacts, and modernize the grid to improve efficiency and  reliability. The project is part of the World Bank's Scaling Up  Renewables in Europe and Central Asia Program. The program, with a  total financing volume of $2 billion, was approved by the World  Bank's Board of Executive Directors on 28 March 2024.