Armenia is at a crossroads regarding the future development of  nuclear energy

ArmInfo. For Armenia, which does not have its own oil and gas fields, uninterrupted and safe operation of the nuclear power plant is crucial. The currently  operating power unit N2 of the Armenian NPP not only provides up to  40% of all electricity generated in the country to the energy system,  but also helps solve a number of economic and social problems.  

The tariff from the station is the lowest compared to other generating  facilities, at about 12 drams (AMD) per 1 kWh of electricity. For  comparison, the tariff from thermal energy facilities is 46 drams,  from hydroelectric power plants is 25 drams, etc. It is easy to  calculate the potential consequences of closing the nuclear power  plant for the country's economy and its population as a whole. For  this reason, the Armenian authorities are delaying the decision to  build a new nuclear power unit, and  instead extending the service  life of the current unit at the ANPP. The extension program was first  announced in 2015, when the Russian Federation decided to provide  Armenia with a  $270 million loan and a  $30 million grant. Financing  for the project began in February 2016, and by September of the same  year the unit was supposed to be closed due to the depletion of its  resources. However, as a result of large-scale work carried out at  the station from 2016 to 2021, the NPP's service life was extended  for an additional 10 years, now lasting until 2026. 

The work was carried out by the Russian company JSC Rosatom Service.  In 2023, the Armenian government decided to extend the station's  service life until 2036, allocating AMD 63.2 billion  (about $120  million) for this purpose. The contractor for the project was once  again the company JSC Rosatom Service. However, the country's  authorities did not stop there. According to ArmInfo, the Russian  company Gidropress, which is part of the State Corporation Rosatom,  is conducting additional research on extending the service life of  the nuclear power plant unit until 2041. The issue revolves around  the possibility of building a new nuclear power unit by 2036, as  everything has a beginning and an end. This raises the main problem  of determining what power unit the country needs.

 Some experts believe that it is necessary to limit ourselves  to  stations with small modular reactors (SMRs), while others insist on  units with higher capacities. Specialists and experts note that in  the context of the fifth industrial revolution taking place in the  world, which will sooner or later spread to Armenia, the country will  need a high-power station - up to 1200 MW. The transfer of all  automobile transport in the republic to electric vehicles alone will  require capacities equal to those of the currently operating power  unit of the Armenian NPP. Additionally, the active development of the  mining industry must be taken into account. According to available  data, not long ago Zangezur Copper and Molybdenum Plant CJSC  approached the management of the ANPP with a request to reserve 250  MW of capacity for the company.  There is no doubt that Lydian  Armenia will require approximately the same amount of capacity for  the development of the Amulsar gold mine. Additionally, a plant for  the production of reinforcement and reinforced concrete structures is  currently under construction. To ensure uninterrupted operation of  this plant, extra energy capacity will be necessary. The active  capital construction   taking place in the republic, may also  contribute to a potential electricity deficit. The Armenian  authorities' intentions to ensure annual GDP growth of at least 7%  may result in additional problems related to the emergence of an  electricity deficit. This is particularly concerning as the Cabinet  of Ministers believes that the solution to this complex issue,  involves establishing the entire chain of manufactured products on  the market - from raw materials to finished samples. Also, we must  consider the plan to fully preserve   the power units of the Razdan  TPP and shut down the second power unit of the Armenian NPP soon,  resulting in a loss of the same 1200 MW.

 Thus, specialists and the expert community are increasingly  recognizing the need to construct a higher-capacity unit.  Renewable  energy facilities and SMRs will not solve this problem.  Interestingly, the Russian side has already presented its own  solution to the issue unlike its Western partners.  At the same time,  Armenian specialists are more inclined towards the Russian NPP with a  VVER-type reactor. Its construction will not only address the  potential electricity shortage, but also create additional jobs.  Thus, the construction of 2 NPP power units with a capacity of 1200  MW each, could create up to 10 thousand jobs at peak construction and  about 1870 jobs during the operation. In practice, this means that  Armenian companies could participate in a large-scale construction  project, ultimately leading to a decrease in the unemployment rate. 

The development of the human resources and scientific potential of  the Armenian state should not be overlooked.  A higher-power unit  will, by and large, integrate into the country's energy system,  especially with the ongoing discussions surrounding the construction  of the North-South (Iran-Armenia-Georgia-Russia) electric power  corridor. Once operational, Armenia will have a capability to export  excess electricity to other countries. Experts predict that if this  project is implemented, the country will be able to sell over 500 MW  of electric power to foreign markets, using the profits to repay  loans that can be used for the construction of a high-power nuclear  unit. This program aligns with the "Crossroads of Peace" project  introduced by the country's authorities, aiming to open up all  transport and economic communications in the region. There is no  doubt that this will lead to a significant increase in investments in  the country's industrial sector, as a high-power unit is essential  for providing sustainable energy. In an interview with an ArmInfo  correspondent, energy expert Artur Avetisyan noted that Russia  continues to offer the most favorable conditions for the construction  of power units in Armenia. It was previously reported, that Armenia  had requested an agreement with the United States for collaboration  in civil nuclear energy.

 However, according to Avetisyan, it is too early to talk about when  and how Armenia will begin to consider specific American nuclear  power plant projects. He added that Armenia needs a medium or  large-capacity nuclear power plant. Several countries occupy leading  positions in this area - Russia, China, the United States and France.  However, in the 1000-1200 megawatt capacity segment, Russia is the  undisputed leader. The United States offers small modular stations  with a capacity of up to 300 MW, but they have not yet been tested in  practice. "Perhaps, in a few years their effectiveness will be  proven, but we do not have time to wait that long. At the same time,  Rosatom is already building a low-power nuclear power plant in  Yakutia and has signed a contract for the construction of a small  nuclear power plant with 6 low-power reactors in Uzbekistan,"  Avetisyan emphasized.   Earlier, Kirill Komarov, the First Deputy Director General of Rosatom Corporation, said that the corporation is ready to undertake any new NPP project in Armenia that is selected by the Armenian authorities.