Tigran MELKONYAN Head of Foreign Relations Department Ministry of Energy and Natural Resources of RA November, 2014 Bangkok, THAILAND

Transcription

1 Tigran MELKONYAN Head of Foreign Relations Department Ministry of Energy and Natural Resources of RA November, 2014 Bangkok, THAILAND

2 CONTENT Overview of the energy sector of Armenia, energy strategy and its implementation Development of competitive energy markets in Armenia Development of Armenia renewable energy sources in Promotion of energy efficiency in Armenia Development of Nuclear Energy District Heating 2

3 ENERGY STRATEGY The Energy Sector Development strategy of Armenia was adopted by the government of Armenia in June 2005, which was updated in The primary objective of the mentioned strategy is to formulate strategic goals for the development of the energy system in Armenia until It aims to identify the avenues to achieve those goals, based on the principles adopted by the international community for sustainable development.

4 The following four Pillars are identified in all official document nuclear energy development full and sound utilization of renewable energy sources, improving of energy efficiency diversification of primary energy resources and import/export routs regional integration and cooperation.

5 ENERGY SECURITY In an effort to ensure an appropriate level of energy security of the RoA we have developed in cooperation with the Armenian National Security Council a Concept of the Energy Security of the Republic of Armenia that was approved by the RoA President s decree in October The RoA government has adopted a programschedule of the events to be held in providing for the implementation of the concept provisions in July

6 Regional integration: Energy security Construction of 400 kv transmission third line Iran- Armenia is started In January 2014 the Feasibility Study of 400 kv TL on the Armenian side and 500 kv TL on the Georgian side has been approved by the Armenian and Georgian Parties. It is envisaged to start with the existing 220 kv line, then to construct 400 kv two-circuit line and a substation with B2B converter at total capacity of 1050 MW. The first stage will be completed in 2018, in which the 220 kv line will be connected to the 350 MW substation with B2B station. 6

7 ENERGY SECURITY In packages of two new loan programs were developed within the framework of financing by the WB ($100 million) and the ADB ($80 million). The packages of these loan programs shall include all substations that were partially refurbished under financing of previous loan programs; works of the third stage of SCADA system installation and modernization of a number of high-voltage transmission lines. In the list of issues and to-do activities for the year 2014 there are two important large projects of regional cooperation: construction of Iran- Armenia transmission third line and construction of Meghri HPP. These two projects shall be financed by Export Development Bank of Iran (EDBI). It is planned to construct a new thermal unit with MW capacity in Yerevan TPP in 2021 and Loriberd and Shnogh HPPs by

8 Energy market Presently the Power Market of Armenia represents, in general, a close system, where economic relations between the power sector entities are formed on a scheme single buyer-seller, the role of which is performed by the Armenian Electric Networks CJSC. A system direct sale-purchase contracts between generators and the distribution company is being applied in the RoA. Currently is under discussion the possibility of implementing partial of phase-by-phase power market liberalization. 8

9 Development of renewable energy sources in Armenia: 9

10 Summary of RE Potential Technology Capacity (MW) Generation (GWh/yr or GWh t /yr) Wind Solar PV 835 1,169 a 1,735 2,118 a Concentrating solar power 1,169 2,358 Distributed solar PV Geothermal power Landfill gas Small hydropower Pumped storage hydropower 150 1,161-1,362 b Biogas Biomass Solar thermal hot water Geothermal heat pumps 3,500 4,423 a) Depends on which solar PV technology is assumed to be deployed: fixed-tilt polycrystalline PV, singleaxis tracking polycrystalline PV, dual-axis tracking monocrystalline concentrating PV b) Pumped storage projects do not generate new renewable energy, but store energy that has been generated elsewhere. So, the pumped storage number is excluded from the total c )Solar PV or CSP can be built in the solar zones. Therefore, the total includes only the generating potential for one of these technologies, so as not to double count 10

11 Development of renewable energy sources in Armenia Armenia has significant achievement in realization of hydro potential. In , more than US$150 million was invested in SHPP, which added around 210 MW of new SHPP capacity. All generation facilities are owned and operated by private companies. The renewable energy based annual electricity generation increased from 150 GWh in 2005 (2.5 percent of total generation) to 740 GWh in 2013 (around 10 percent of total generation). The donor community played an important role in promoting development of renewable energy in Armenia through a number of projects, including resource assessments and mapping, which also provided both investment and technical assistance to improve the legal and regulatory framework for renewable energy. Research and technical capacity as well as studies, policies and plans for renewable energy development already exist in Armenia. 11

12 Development of renewable energy sources in Armenia Investment projects: WB&EBRD REP; GEF/WB REP; KfW REP; EBRD ArmSEFF, IFC SEF TA projects financed by WB, USAID, ADB etc The German Government will provide a concessional loan for development of renewable energy in Armenia. In 2010 the German KfW bank provided to Armenia a loan of 18 million and a grant of 1.5 million (the second stage of the project), under which 16 SHPPs of 52.5 MW total installed capacity were financed up to date. In November 2013 within the framework of Project III a loan of up to 40 million was provided; the possibilities of providing assistance to other renewable energy areas are currently being negotiated. 12

13 Development of renewable energy sources in Armenia On 27 June 2014 the Bord of Climate Investments Fund adopted the participation of Armenia in SREP scaling-up RE in low income countries programme. The Ministry of Energy and Natural Resources of RA development of the investments plan for the Renewable Energy extension project that will make possible receiving $40 million of grant and loan means from the Climate Investments Fund, aimed to finance investment programs estimated to nearly $150 million. Based on the results of the Geo-Thermal Project the extension of the project has been included into the Armenia Renewable Energy Investment Program, which was submitted for financing within the frameworks of the Renewable Energy Extension Program of the Climate Investment Fund. 13

14 Development of renewable energy sources in Armenia The Scaling-Up Renewable Energy Program of the Climate Investment Funds seeks to demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector in low-income countries. SREP does this by supporting the deployment of renewable energy technologies such as solar, wind, bio-energy, geothermal and small hydro in low income countries. The support is intended to have a transformative impact on the country, leveraging SREP funds to remove barriers to renewable energy and lead to the replication of renewable energy investments through other sources of financing. 14

15 Development of renewable energy sources in Armenia The Investment Project is the result of an extensive internal and public consultation process, led by government, to identify priorities in the development of renewable energy technologies for electricity and heating. The consultations included a wide range of government agencies, as well as representatives from the private sector, civil society, and academia. Discussions were informed by the analysis of the Renewable Resources and Energy Efficiency (R2E2) Fund and international consultants. The IP also serves as an update and further elaboration of the Renewable Energy Roadmap developed for Armenia in

16 Promotion of energy efficiency in Armenia: 16

17 Promotion of energy efficiency in Armenia In 2012 the RoA government has approved the energy efficiency project under the World Bank financing (implemented by the Armenia Renewable Resources and Energy Efficiency Fund). The project is targeted to implement energy saving activities in public facilities (schools, other educational institutions, kindergartens, hospitals, administrative buildings, cultural centers, external lightening of residential buildings). The purpose to develop this project is to reduce the level of energy consumption by social and other public facilities. The cost of the project estimated to be about 10.7 million USD. Within the framework of the Energy efficiency investments in public buildings component about 230 public utilities submitted applications for participation in the project. 77 of the submitted applications from utilities were rejected due to small energy costs, 22 were approved - of which in 13 utilities the works were completed in 2013 and 49.3 % energy savings in average were ensured, while works in 9 utilities are planned to be completed in The remaining utilities are in the process of study and assessment. 17

18 Promotion of energy efficiency in Armenia Membership in the Eastern Europe Energy Efficiency and Environment Partnership (E5P) will enable implementing very important energy efficiency projects. This will provide an opportunity to receive not only grants, but also very soft loans for implementation of energy saving and energy efficiency measures in urban areas of Armenia that makes an integral part of the National Energy Efficiency Program. 18

19 Promotion of energy efficiency in Armenia }Investment projects: WB-Urban Heating Project; GEF Energy Efficiency Project, EBRD ArmSEFF, IFC SEF }TA projects financed by WB, GEF/UNDP, USAID, EBRD, etc }R2E2 Energy Efficiency Project Objective Reduce energy consumption in public buildings Financing - Revolving Fund $8mln. from GoA to R2E2 Fund WB/GEF Grant - $1,8mln. Beneficiaries public and municipal agencies Typical ESMs Insulation of walls and roofs, replacement windows, replacement of street lighting system Repayment within 10 years with 2.5% interest Currently about 15 Energy Savings Agreements were signed, 2.6 mln$ 19

20 Development of Nuclear Energy 20

21 Development of nuclear energy In October 2009 was adopted the Law of the RA On construction of new nuclear unit(s) in the Republic of Armenia, which will serve as a legal basis for construction of the new nuclear unit in Armenia. In accordance with the provisions of international conventions and the internal legislation of Armenia was developed the document «Environmental Impacts Assessment», and had been held the public hearings on the Environmental Impacts Report. At the same time has been developed the document «seismic and volcanic hazard assessment for the new unit at the Armenian NPP site», which had the positive feedback from the IAEA experts. In August 2010 an agreement was signed between the governments of Armenia and Russia On construction of a new nuclear power unit on the territory of the RA. According to the Agreement, the Russian portion of investments will correspond to the cost of equipment supplied for the nuclear island. The project is open for other investors. Other nuclear unit components of the project, i.e. Turbine Island, I&C systems with agreed Rosatom can be Western technology. It is the subject of negotiations with international suppliers. According to the Government decree 511-A as of the new nuclear power unit have to be start operation at

22 Development of nuclear energy Taking into consideration the restrictions on providing the credits to the Republic of Armenia by sovereign guarantee, the implementation of the project on the construction of a new nuclear unit(s) in Armenia was slowed. Since the development of Armenia New Nuclear Unit has been delayed the Government of Armenia made the decision to extend the life time of the existing unit in order to assure sustainable and secure electricity supply to Armenia customers. On 27 March 2014 the RoA Government has approved a Decision on the ANPP Design Lifetime Extension Program. 22

23 District Heating Until the economic and energy crisis of the 1990s, the district heating system in Armenia supplied nearly all heating and hot water to residential and public buildings. The district heating system had actually collapsed: heat generation by district heating systems in 2005 fell to about 2.5% of that in There were no regulations or authorised body designated responsibility for the sector, no targeted social support and no financial support schemes. Public reliance on individual heating solutions for heating and hot water increased; The gas supply system was expanded and safety requirements were relaxed for using natural gas for heating purposes in multi-storey residential buildings. The development of Cogeneration in market conditions, without of crosswise subsidies. 23