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Agenda 2000 How
is Armenia facing up Dinner debate
organised 22 November 2000, Brussels
Speaker : Dr Garen Galustian, Energy Minister of Armenia The Ambassador Mr Viguen Tchitechian, former Vice-Prime Minister, and Mr Hovhannes Hovhannisyan, member of the Armenian Parliament will take part to the event. Armenia is entering into the third millennium possessing a unique experience of managing its energy sector during the deep energy crisis it has gone through from 1992-1995. This crisis was hardened by background conditions : Armenia's situation as a land-locked country deprived of any fossil energy, with its only NPP shut down and subject to a conflict with one of its neighbouring countries. How can Armenia reduce its energy dependency and solve its energy problem? What is expected from the European Union? What is the future of the Medzamor nuclear power plant? These are interesting problems and questions to be solved and discussed. *** The Armenian Energy Minister, Garen Galustian, presented the topic by reviewing : developments in the national energy situation, the country’s energy security and international co-operation. Armenia suffered an energy crisis over the period 1992-1995. It managed to overcome the crisis in the years 1995-1996 by implementing a number of measures : a return to operating the Medzamor nuclear plant and providing round-the-clock electricity, improving security of the gas supply and launching a reform policy. The situation stabilised in 1997-1998, mainly as a result of the introduction of an effective legislative system and an interconnection with Georgia and Iran. The country had currently (1998-2001) reached the stage of improving the financial aspects of the situation, essentially by privatising the electricity sector. Energy security was a primary objective for a country which has few of its own resources. The country had a three-pronged startegy in this sphere : diversification, regional co-operation and the development of indigenous resources. A number of other factors had also been mobilised to reinforce energy security : the socio-political aspects, creating a market, economic stability, building up stocks, promoting energy efficiency, involvement in the Energy Charter, … Armenia had great experience in international co-operation. Developing and reinforcing energy co-operation would henceforth be linked to the involvement of international financial Institutions and investors. The risk was relatively high during a transitional period and Armenia must therefore seek guarantees from the large Institutions. The debate revealed that the nuclear issue was a very sensitive one for Armenia. According to the European Commission, the definitive closure of the Medzamor nuclear plant was a key point in the Union’s policy, but the policy did not centre on this one issue. A joint working group was already looking into the alternatives to be implemented after the closure of Medzamor and an international conference of " donors" was scheduled. Nuclear energy was essential to Armenia from the security of supply viewpoint and also from the economic viewpoint. The cost of running a gas-fired plant was 5 to 6 times higher than for Medzamor which had been made substantially safer at a technical level. Gas was the best alternative, provided that it was not supplied by a single supplier. In any event, Armenia did not wish to go through any more crises like the one it experienced between 1992 and 1995. |
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