At the present, Armenia’s power-engineering is in the most critical
stage of transformation. It is possible for the Ministry of Energy to
cease to exist within the framework of those transformations. Those
changes are the continuation of the complex, often contradicting and
result of political chaos which leads to tendencies.
The Ministry of Energy of Armenia, starting from the Soviet era, was a
type of industrial establishment which was involved in all issues
concerning electricity, including electric power stations up to
electric networks serving the people.
The Hydro-Industrial Electric Power Station (HIE), the three thermal
power plants and many other small and large hydroelectric stations make
up the full potential of Armenia’s power-engineering. The small HIEs
are the first power-engineering stations that are getting privatized.
This has started way back in the 1990s. The only hydroelectric station
that has been privatized is the “Sevan-Hrazdan” complex (7 stations).
This year, this complex hydroelectric station worth $25,000,000 dollars
is being sold to the Russian RAO EES in exchange for the average,
accumulated debt of the Armenian Industrial Electric Power-Station
(IEP). Russia has also gained ownership of Hrazdan’s Thermal Power
Plant(TPP), the largest thermal power plant in Armenia. One of the
well-functioning parts of the TPP (except the half-built block) was
sold for $65,000,000 dollars.
The technical potential of Armenia’s small hydroelectric stations,
according to the plan of the “Armhydroenergyproject” in collaboration
with the European community, is composed of 270 megawatt force and a
yearly output of 770,000,000 kilowatt/hour.
There are no outlooks for the privatization of Yerevan’s TPP which is
obvious due to the fact that it is the oldest one in Armenia, does not
meet international standards and does not interest investors. Despite
this, however, recently Japan’s government has gotten interested in the
TPP which, according to preliminary discussions, is said to be sold for
$140,000 million dollars.
Armenia’s third TPP is the one in the city of Vanadzor. This TPP has a
relatively small force and belongs to the Vanadzor chemical plant
(Chemprom). It must be added that this company’s future is also a bit
hazy because the two investors who had invested in the plant a couple
of years ago have lost a lot of money and now the plant awaits a resale.
The next important company is the Armenian IEP. This electric
power-station has also been sold to the Russian government. Many
countries and organizations are demanding that Armenia close that
power-station, claiming that it was built back in the 1970s. The
European Union has foreseen providing Armenian with 100,000 euros in
order to build an alternative electric power-station. Approximately
$60,000,000 dollars is needed in order to build a 75 megawatt
hydroelectric station, but Armenia’s atomic/electric power station’s
force is 380-400 megawatts. The construction of a new atomic/electric
power station will require approximately $1,000,000,000 dollars.
After all this, what will be left for the Ministry of Energy? What will
be left are the high-voltage network and the “HyeEnergo” company,
better yet-some branches of the company. The former “HyeEnergo” company
had centers of finances, control rooms, an organizational staff and
conventions. However, in November of last year the finances center of
“HyeEnergo” has turned into a closed joint-stock company. According to
the recent resolution made by the government, there will be electric
power-engineering operating centers and the formation of an “Energy
System” closed joint-stock company. These are the new above mentioned
control and coordinating centers. The first one is involved in securing
the electric power-engineering and the other checks up on system
equipment. As a result it turns out that the only thing that the
“HyeEnergo” company does is make transactions for the electric
power-engineering.
In addition, for the past five years the Ministry of Energy has been
deprived of setting its price list. Since 1998, the power-engineering
board is responsible for setting the price list, however, now the board
has been turned into a board of monopolies. As a result of all of this,
it is clear that the Ministry or Energy will soon be eliminated and
that only one department will remain. Of course, if we think a little
logically we can come to the conclusion that that will also be sold to
the government of the Russian Federation.