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Armenian National Transmission Grid

Electricity Production in Armenia by Power Plant 2006

Armenian National Transmission Grid is the only electric power distributor and primary employer in Armenia. Several companies, under its control, are responsible for energy generation and distribution across the country; Electric Networks of Armenia, High Voltage Electric Networks and Electro Power System Operator.Today Armenian National Electric Transmission Grid has 11 branches, 7 of which serve in different regions of Armenia and 4 serve Yerevan. It is engaged in distribution, transmission, and sales of electricity in Armenia, providing service to more than 1 million consumers.

History

The first high-voltage lines in Armenia, 22KV, were built in 1928. In 1938, Armenian energy system was formulated by the operation of energy transmission lines with the voltage of 110 KV.The collapse of the USSR affected the economic condition of the country which led to a substantial crisis period in 1992-1995. The distribution companies were in a desperate situation which could be described by the lack of control, a decrease in collection rate for the energy consumed, multiple overloads of the network leading to various accidents, power outages and ancillary equipment problems. As a result, in 1966, 64 utility companies were set up which were responsible for the energy sale. Later, those companies were replaced by 11 larger ones.

Old high-voltage lines below Aragats

In 1997, the Law on Energy was adopted, and the Energy Regulatory Commission was set up to begin the reorganization and commercialization of the energy system, based on the division of responsibilities between production, transmission, regulation, and distribution. The law aimed to encourage the development of renewable energy resources and emphasized the role of electricity distribution company in purchasing renewable energy. In 2002, the 11 enterprises united to formulate Armenian National Transmission Grid with the ownership of “Midland Resources Holding.” In 2015, Armenian government sold High Voltage Electric Networks to the company ‘Tashir Capital,’ whose owner, a Moscow based Russian billionaire and entrepreneur of Armenian origin, Samvel Karapetyan, acquired Electric Networks of Armenia later on. Both High Voltage Electric Networks and Electric Networks of Armenia serve as power distributors by receiving energy from countries like Georgia and Iran, and delivering electric power to consumers across Armenia. It is assumed that the monopoly of electricity distribution was sold for almost $720 million, not to mention the company’s debts. From April 14, 2017, the shares of the company are divided among "Tashir Capital" (70 %) and Lormand Holding Limited (30%).

Structure

Electric networks of Armenia

Armenian national energy transmission grid refers to the collection of transmission lines and transformers, managed by the ENA (Electric Networks of Armenia). The Armenian EN provides service to more than 1 million customers. Overall, the grid has 11 branches, spread throughout Armenia.The four of eleven branches of ENA are situated in Yerevan only, while seven other branches are located in different marzes (regions) of The Republic of Armenia. More concretely, in Yerevan, there is just one branch dedicated to deep utilization of 35-110 kV networks. Moreover, the rest of the branches are being mainly used on the sale and exploitation of 6 (10)/0,4 kV (South, North, West).The other seven branches, as it was mentioned earlier in the text, being situated in marzes, have uniform arrangement have a use of networks 0,4-110 kV. The facilities are situated in marzes of Kars, Debed. Geghama, also in Tatev and Musaler. The administrative structure of the NES CJSC has been approved by the Board of Directors in 2007 and is includes administrations, its’ subdivisions, and nine NFS branches including Eastern, Western, Central, Goris, Zangezur, "Northern" and “Southern." Branches are implementing: licensed monopoly, the main activity of which is the transmission of electric power (energy) of the Republic of Armenia with their high-voltage power transmission lines. The "Project" branch performs scientific-research and design of energy structures, its’ research and design and the Energy Asset Management Directorate carries out energy facilities and high-voltage power transmission lines construction.

High-Voltage Electric Networks

High-Voltage Electric Networks CJSC has registered in their balance - 220 kV - 13 kW and 110 kV substations, with the total capacity of 33 power transformers being 2561.0 MWA and one "Agarak" 220 kV substation. Capacities of current power transformers installed at 220 kV and 110 kV substations satisfy the consumption of electricity. - The total length of the transmission lines at 330, 220, 110 kV design meters is 1914,73 km, including 330 kV - 127,62 km, 220 kV - 1366,51 km, 110 kV - 420,6 km, of which 26,58 km are in Georgia's territory, as well as 10 and 6 kV - 9.6 km. - "Lori" wind power plant with total capacity of 2.64 MW with 4 aggregates.

Main Functions

Distribution

Substation transformer

Armenia's national electrical grid is mainly responsible for distribution of electric energy. The path of distribution consists of 6 steps. The first one is the power station step, where the electricity is generated. With the proportions of 42.3% for 3 Thermal Power Plants, 27.7% of Nuclear Power plant, 18.6% of 2 Large Hydro Power Plants and 11.4% of 173 Small Hydro Power Plants and Renewable Power Plants, Armenia generated almost 7.5 billion kWh electricity in 2017, which is regulated by High Voltage Electric Networks of Armenia CJSC. Then the electricity is transported to 1^st substation transformer, where it is transformed into high voltage electricity, which is more useful, because high amounts of electricity can be transported for large distances. Armenia has 102 pieces of high voltage substation transformers (110kV), with the specified capacity of 4478 MVA. With this voltage, electricity travels for 2307,12 km, with the switches 159 pieces and bearers 9482 pieces. The third step is about the transmission networks, which carry the electricity to the customers, but again in high voltages, for the same reason. The 4^th step is the 2^nd substation transformer, which lowers the voltages for everyday use. For this case, Armenia has 224 pieces of substation transformers (35kV), with a specified capacity of 1736 MVA. With this voltage we have cable lines of 67,67 km, switches – 687 pieces and bearers of 12945 pieces. This transformers are located in a certain area and are the start for the 5^th step, which is the distribution power-lines step. In this step the electricity reaches its final destination and is ready for the 6^th step, which is the home and businesses, where the electricity is used. In Armenia it is done with the help of High Voltage Electric Networks CJSC and Energy Networks of Armenia CJSC, which means that the electricity is monitored by HVEN CJSC and distributed by ENA CJSC. Electric Networks of Armenia CJSC was founded back in 2002, merging four state regional companies (“Yerevan Electric Networks”, “North Electric Networks”, “South Electric Networks” and “Central Electric Networks”). With an overall spread of 36km grid, it provides with electricity over 1 million customers.

Selling Electricity

After being distributed, the consumer pays for the electricity with the specific tariff, which is defined by the ENA CJSC and approved by the Public Services Regulatory Commission (PSRC) of Armenia and The Ministry of Justice. So, the transmission grid is the only way to sell electricity. When transported from HVEN CJSC to ENA CJSC 2.04% of losses occur, while in the distribution state 11.03% losses of electricity take place. ENA CJSC buys the electricity at the rate of 25.7 AMD/kWh and also the transmission and distribution cost 1.7 AMD/kWh and 14.1 AMD/kWh respectively. This means that ENA CJSC pays 41.5 AMD per kWh. So, the costumers of ENA CJSC are divided into 4 voltage categories. The first one is the large businesses that buy electricity with the highest amount of voltage available, which has 110 kV of voltage. For that costumers have to pay 34.7 AMD/kWh for the daytime and 30.7 AMD/kWh for the night time. The second group has to pay 37.2 AMD/kWh for daytime 33.2 AMD/kWh for nighttime, for 35 kV of voltage. For the 6(10) kV of voltage consumers should pay 43.2 AMD/kWh and 33.2 AMD/kWh at daytime and nighttime respectively. Finally, about the ordinary consumers, 0.38 kV of voltage should be bought at 46.2 AMD/kWh and 36.2 AMD/kWh at daytime and nighttime respectively. This group involves the majority of the population, as this voltage is for domestic use.

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•   Average output in mln Kwh December
•   Average output in mln Kwh a year

Future Plans

Armenia does not have its own reserves of oil and natural gas to use in the production of energy. Therefore, Armenia relies on imported oil and gas for this purpose. Currently, most of the country's electricity is supplied by the Armenian Nuclear Power Plant which is quite an old facility and there are many concerns about the capacity of the power plant to be a major source of the energy supply for Armenia in a long-run period.

The regulated distribution and sales of electrical energy in Armenia is performed by the CJSC "Electrical Networks of Armenia". Tashir Group, which is the shareholder of the ENA has announced that it will spend about 900 million US dollars on the distribution grid to upgrade the current power infrastructure in Armenia.

In July, 2017 "High Voltage Electric Networks’’ CJSC reported about its discussions with the government of the Islamic Republic of Iran. The parties discussed issues related to "Iran-Armenia 400 kV overhead transmission line" project. The project has an objective of increasing the power supply capacities between the energy systems of the two countries.

The Eurasian Development Bank has signed a memorandum of intention with the Electric Networks of Armenia for providing a loan to the ENA which will be used for constructing new distribution networks, enhancing the existing ones, etc.

Additionally, the Ministry of Energy and Natural Resources has announced that it plans to perform investment program for modernization of the power grid of Armenia. The representatives of the Ministry said that the modernization expenses will be financed by different credits and grant programs implemented by the Ministry.

On the top of this, the German's KfW Bank has agreed to finance the construction of the Armenia-Georgia substation and the power transmission line with the objective of uniting the energy systems of these two countries. This project will be implemented in stages and will aim at increasing the volume of energy turnover between the countries from 200 MW to 1050 MW.