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1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER OF ENERGY AND NATURAL RESOURCES OF RA

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Page 1: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

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“High voltage electricity line between Armenia and Georgia (regulatory framework)”

AREG GALSTYAN DEPUTY MINISTER OF ENERGY AND NATURAL RESOURCES OF RA

Page 2: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Content

The power system of Armenia

Investment projects

Financing of the investment projects

Legislative, regulatory and contractual frameworks

Conclusion

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Page 3: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The power system

of Armenia

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Page 4: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The Power System of Armenia

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1. Full self-sufficiency in generation capacity

– Working capacity 2700 MW, at peak load 1700 MW

2. Diversification by type of generation

– NPP – 40% of internal demand

– HPP – 35% of internal demand (of which 9% small HPPs)

– TPP – 25% of internal demand

3. Diversification by sources and routes of natural gas supply

– Two main gas pipeline:

• the northern route from Russia

• the southern route from Iran

Page 5: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The Power System of Armenia

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4. Commissioning of the new thermal CC units

– YerTPP – 220 МВт, Hrazdan-5 – 440 МВт

5. Development of small HPPs

– 283 MW were commissioned

– 115 MW are under construction

6. Life extension of the existing NPP up to 2027

7. Construction up to 2027 of new TPPs and HPPs with total installed capacity about 800 MW

8. Construction and commissioning new NPP in 2027

Page 6: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The Power System of Armenia

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9. Development up to 2027 of renewable energy recourses (wind, solar, geothermal) with total installed capacity about 400 MW

10. Existing interconnections

– Two 220 kV overhead lines Armenia-Iran, 400 MW

– 220 kV overhead line Armenia-Georgia, 200 MW

– Two 110 kV overhead lines Armenia-Georgia, 150 MW

– 220 kV overhead line Armenia-Turkey, 200 MW – out of

operation

Page 7: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The Power System of Armenia

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Existing interconnection Armenia - Georgia

SS Alaverdi-2

220 kV

SS Gyumri-2

125 MVA

SS Gardabani

Border Armenia - Georgia

SS Sadakhlo SS Ninotsminda

220 kV

110 kV

63 MVA

110 kV

SS Vanadzor-2

125 MVA

Page 8: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

The Power System of Armenia

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Existing interconnection Armenia - Iran

220 kV

SS Shinuhayr

110 kV

to Iran

220 kV

SS Agarak 125 MVA 63 MVA 63 MVA

Page 9: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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Page 10: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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Armenia is implementing major investment projects for

the integration into the regional power market,

which will create a reliable infrastructure for regional

trade and transit of electricity

Page 11: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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1. Construction of new 400/500 kV overhead lines and back

to back HVDC substation with installed capacity up to 1050

MW will create a reliable asynchronous connection with

Georgian power system and through it with the regional

power systems (Russia, Turkey)

Page 12: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

Implementation of the project will include following stages:

– I stage – up to 2018 construction of the first converter unit of «Ayrum» back to back HVDC substation with 350 MW installed capacity and substaion facilities, construction of new 400 kV substation «Ddmashen», 400 kV overhead line «Ddmashen-Ayrum », 500 kV overhead line «Ayrum-till boarder with Georgia»

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SS Ddmashen

350 MW B2B HVDC SS Ayrum

to Georgia

400 kV

220 kV

400 kV

500 kV

500 MVA

Page 13: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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Implementation of the project will include following stages:

– II stage – construction of the second converter unit of «Ayrum» back to back HVDC substation with 350 MW installed capacity with the extantion of interconnection installed capacity to 700 MW in 2021

SS Ddmashen

350 MVA HVDC

SS Ayrum

to Georgia

400 kV

220 kV

400 kV

500 kV

500 MVA

Page 14: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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Implementation of the project will include following stages:

– III stage – construction of the third converter unit of «Ayrum» back to back HVDC substation with the extantion of interconnection installed capacity to 1050 MW in 2027, construction of the second cuircit of overhead line «Ddmashen - Ayrum»

SS Ddmashen

350 MW HVDC

SS Ayrum

to Georgia

400 kV

220 kV

400 kV

500 kV

500 MVA

350 MW 350 MW

Page 15: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Investment projects

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2. Construction and commissioning up to 2018 400 kV double circuit

overhead line Armenia-Iran with 800 MW installed capacity.

Implementation of the project will increase total capacity of

interconnection up to 1200 MW.

SS Ddmashen

HVDC SS Ayrum

to Georgia

400 kV

220 kV

400 kV

500 kV

500 MVA

350 MW

200 MVA

SS Noravan

SS Agarak

400 kV

220 kV 220 kV

to Iran

Page 16: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

400 kV power system of Armenia

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Page 17: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Financing of the invetment projects

1. Cost of the I stage of “Construction of new 400/500 kV overhead lines and back to back HVDC substation with installed capacity up to 350 MW” is 127.4 mln €, from which 85 mln € financed by German KfW bank.

Cost of the II stage, also financed by German KfW bank.

Consultant of the project is German company FICHTNER.

2. Cost of the “Construction and commissioning up to 2018 400 kV double circuit overhead line Armenia-Iran with 800 MW installed capacity” project 107.0 mln €, financed by Iranian bank of export and development.

Construction works are implementing by Iranian company Sanir.

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Page 18: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Legislative, regulatory and contractual frameworks

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In addition to infrastructure projects, Armenia develops

legislative, regulatory and contractual basis with

Georgia and Iran to create transparent conditions for

trading and for the economic cooperation

Page 19: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Legislative, regulatory and contractual frameworks

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Armenia plans to harmonize the structure and rules of

the market to maximize the benefits of regional

integration. In this context, it is planned to carry out a

critical analysis of the current market structure and to

prepare steps for modernization of the market in order

to provide more flexible and well structured and tariffs.

В этой связи, планируется провести критический

анализ нынешней рыночной структуры и

подготовка шагов для ее модернизации для

обеспечения более рыночной и гибкой структуры

рынка и тарифов.

Page 20: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Conclusion

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Commissioning of mentioned infrastructure projects will

create a reliable interconnection North-South.

Parallel operation of Russia, Georgia, Armenia and Iran

establishes mutually beneficial conditions for the

cooperation in electric power sector.

Page 21: “High voltage electricity line between Armenia and · PDF file1 “High voltage electricity line between Armenia and Georgia (regulatory framework)” AREG GALSTYAN DEPUTY MINISTER

Thank you!

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2 Goverment House , Republic Square, Yerevan, 0010, RA Tel: +374 11 521964 E-mail: [email protected]