The National Assembly of Armenia approved two agreements signed with Rosatom, Russian national nuclear body envisaging the upgrading of the Metsamor NPP, country’s sole nuclear power plant and Russianfinancial assistance for its maintenance work.
The first agreement pertaining to upgrading and prolongation of life span of the nuke plant up to 2026 was signed by Energy Minister of Armenia Yervand Zakharyan and Rosatom’s Director General Sergey Kirienko in December 2014.The second agreement concerning financial support for NPP’s reconstruction was concluded in February 2015.
Reconstruction work is supposed to start in 2017 and will last for half a year. Russia will provide US$ 270 million as credit and another US$ 30 million as grant to Armenia for the purpose. The credit should be repaid within 15 years with a grace period of 5 years with an interest rate of 3% per annum.
The Metsamor is the only nuclear facility in Armenia which is already obsolete, and needs decommissioning,according to Eurocommission.
Built in 1980, 16km from Turkish border, Metsamor now produces more than 40% of Armenia’s electricity.
Armenia has no coalor natural gas or oil reserves. Hydropower contributes around one third of the total power generation while wind power is still underdeveloped. As a result Armenia’s high dependence on imports of fossil fuel. According to experts, Nuclear powercan be an ideal solution for Armenia for stable and reliable energy supply.