Monday, March 20 2017 19:24

ArmInfo. The Italian company Renco will invest about $ 250 million in the construction of the second power unit in Yerevan with a combined-cycle of 250 mW apacity. The ceremony of laying the capsule took place on March 20 at the territory adjacent to the Yerevan TPP, where construction will begin.

According to the Minister of Energy Infrastructures and Natural Resources of Armenia Ashot Manukyan, the completion of construction works is planned in 25 months. The program will create about 900 temporary jobs, and from the time of operation 200 permanent and highly paid jobs. "The best effective technologies will be used in the construction, and the efficiency will be 53%, while this indicator of the Hrazdan power unit is 44%, Yerevan Thermal Power Plant has 49%. This means that we will be able to ensure the reliability and security of the country's energy complex", he said.

At the same time Manukyan noted that the export energy potential of Armenia by the end of 2019, when the Iran-Armenia-Georgia power line will be commissioned, will be 1050 mW. In this regard, he stressed that, with all the desire, the republic through alternative sources cannot provide such a volume of exports from Armenia, given the seasonality factor. At the same time, the head of the agency noted that the technologies that are applicable in the construction of the second power unit are quite competitive due to a minimal reduction in the cost of natural gas. The state is obliged within 20 years to purchase all the electricity produced by the unit at a price of 6 US cents excluding VAT.

For his part, Renco CEO Giovanni Rubini noted that part of the financing will be provided at the expense of Renco's own funds, and the second part by involving international banks, which, he said, are very enthusiastic about the project, which, according to the investor, shows their confidence in the company, the project and Armenia. "With Armenia, Renco has been working for about 20 years. But today is a historic day, as we begin cooperation in the key area for us - the energy industry", Rubini said, noting that it will take about 20 years to recoup the investment. He also said that at the end of this year or early next year the company intends to begin construction of certain buildings in the territory adjacent to the Hillton hotel, which is the property of the company. At the same time, he stressed that the company will continue to invest in the implementation of various projects in Armenia. In the construction of TPP, Renco also invested in Italy, Tanzania, and Congo.

The ceremony of laying the capsule was attended by Armenian President Serzh Sargsyan, Deputy Prime Minister, Minister of International Economic Integration and Reforms of Armenia Vache Gabrielyan and representatives of governmental structures.

To recall, the company RENCO has been working in the Armenian market since the late 90s, carrying out the construction of large facilities, including two "Congress" and Golden Tulip Yerevan hotels, the Italian Embassy in Armenia, as well as a residential complex and the first underground garage under one of the central squares of Yerevan.

Earlier it was reported about talks with the Japanese side on attracting credit resources to the new unit of the Yerevan TPP. At the same time, within the framework of the World Bank credit program on "Electricity Transmission Network Improvement Project (ETNIP) of Armenia", on July 19, 2016, a contract was signed for the construction of a new 220 kW substation at the Yerevan TPP with the main contractor of the project - the consortium AB SUBSTATIONS AND COBRA INSTALACIONES Y SERVICIOS S.A. (Sweden/Spain). The main contractor was chosen based on the results of the international tender, the construction of a new substation of the Yerevan TPP with a capacity of 220 kW is planned, the contract value is $ 11.3 million, 4.7 million EUR and 6.9 million Swedish kronor. The construction of the new substation is planned to be completed within 17 months, the Yerevan Thermal Power Plant was designed and built in 1963-67, and the nominal capacity of the plant is 550 MW. Today, only one of the seven units of the 50 MW power plant operates. The modernized Yerevan Thermal Power Plant with a new modern combined-cycle was put into operation in April 2010. The total installed capacity of the new Yerevan TPP plant is 271.7 MW, while the power capacity of the plant is 242 MW and the thermal capacity is 434.9 GJ/h. Construction of a new modern combined-cycle power unit at the Yerevan TPP was implemented with the assistance of the Japan Bank for International Cooperation (JBIC), which provided Armenia with a loan of $ 247 million. The loan was granted for 30 years, with a 10-year preferential treatment.

According to the National Statistical Service of Armenia, electricity generation in Armenia in 2016 was 7315.2 million kWh, with an annual decline by 6.2%. TPP reduced the generation of electricity by 7.8% per annum up to 2581.5 million kWh.

According to the Armenian Customs Service, Armenia reduced electricity exports in 2016 by 97.4% to 1217 million kW / h. Moreover, the whole volume of electricity exports falls on Iran. At the same time, Armenia increased the volume of imported electricity by 30.6% up to 214.2 million kW / h. The bulk of it, Armenia imports from Georgia (68.7%), and the rest comes from Iran.