An agreement has been signed to build a new gas-vapor cycle unit for Yerevan Thermal Power Plant, Garegin Baghramyan, Armenian acting energy infrastructures and natural resources minister said the previous week. In his words, the construction is estimated to cost $250 million, and the price for the electric power generated by the plant will be lower than that generated by other thermal power plants.
The government started negotiating over the matter yet in 2017, but the final agreement was signed just last week on November 15. “The long term negotiation has resulted in the agreement and the arrangement that the electric power generated by the thermal power plant will be driven down from 6.02 cents to 5.7 cents,” Baghramyan said. “We have managed to save $6.4 million a year from the implementation of the project, and this amounts to $160 million for 25 years.” In fact, he said, the electric power will cost AMD 27.4 and this is already four drams less than the present price for the electric power produced by Hrazdan Thermal Power Plant (31.5 drams) and even the Yerevan Thermal Power Plant (29.4) drams.
Baghramyan said that the lowered price for the electric power will drive retail power price down, since wholesale supply will become cheaper as well. He said that quite new and high-professional technologies will be applied at the plant. “Financial matters will be settled within two months and the construction of the unit will take some 26 months, after which 200-250 employees with quite high salaries will work here,” he said. “The new plant will be built near the old Yerevan Thermal Power Plant.” Baghramyan said that the old 400 mega-watt unit is planned to stop operating in 2019 or 2020. He also said that demand for electric power is expected to be growing in the country, given the construction of 110-megawatt mining farms, the program with Iran “Gas for Electricity” and the construction of the third Armenia-Iran electric power line.
Giovanni Rubini, Chief Executive Officer at RENCO SPA, on his side, said that the project will be implemented jointly with Siemens Company, which will receive 40% of the shares of the new 250-megawatt unit, while the remaining 60% will belong to RENCO and an Italian state owned company.
The plant is estimated to operate for 25 years.
Rubini said this is a very important project for Armenia and for the company itself, since for the first time in over 20 years of its activity in the country it engages in its direct business – construction of power-generating units and generation of electricity.