^a Formal data of the census of population. ^b Country Statistic Information.

Source: IAEA Energy and Economic Database; Data & Statistics/The World Bank; National Statistical Service of RA.

The population average growth rate from 2001 to 2009 is about +0.92%. The concentration of population is not equal in different areas of the republic. The Ararat Valley is the most populated territory of the country with the density of 245 person/km². Its area makes about 26.7% of the total territory, and its population reaches to 58.8% of the total population. Yerevan, the capital of the Republic of Armenia, lies in the Ararat Valley and is home to 1.1 million people, which is about one third of the total population. The highland areas have much less population with the density of 24 person/km².

1.1.2. Economic Indicators

After the disintegration of the Soviet Union, an economic crisis broke out, and Armenia suffered from sharp decline in production during the period 1990-1994. The country undertook great efforts to overcome it. Since then, the situation has been gradually stabilized, and the republic is coming out of the crisis following the transition to a market economy. During the period 2000-2009, the Gross Domestic Product (GDP) has increased on 347%, and the average growth rate was 20.2 % per year. The historical GDP information is shown in Table 2.

^(e) Industry includes also construction, transport and communication

^(f) Services include trade, net taxes and other

Source: IAEA Energy and Economic Data Base; Data & Statistics/The World Bank; Country Information.

Armenia is not rich in mineral raw materials. There are only a few items of considerable industrial value: copper, bauxite, molybdenum, precious metals, perlite, diatomite and coal. This factor mainly determines the economic structure of the republic. There has traditionally been very little heavy industry. The manufacturing sector has a prevailing share in GDP.

1.1.3. Energy Situation

The main sources of energy, traditionally used in Armenia, are: oil products, natural gas, nuclear energy, hydropower and coal. Hydro and a small amount of brown coal are the only domestic sources of energy, which are exploited. The republic has no oil and some gas reserves (not exploited). The geological forecast says that some quantity of uranium may be in Armenia, that’s why in July 2008; the Russian – Armenian joint venture was established for uranium geological exploring, mining and processing.

The energy reserves are shown in Table 3. To meet its energy requirements, Armenia has to import gas, oil products and nuclear fuel.

(*) Sources: 20th WEC Survey of Energy Resources, 2004 and Uranium 2005: Resources, Production and Demand ("Red Book")
(1) Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(3) Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology
(4) Reasonably Assured Resources (RAR) under < USD 130/kgU
(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology
Source: IAEA Energy and Economic Data Base, Country Information.

Hydropower is based on the water resources of the republic, including Lake Sevan, one of the largest highland fresh-water lakes in the world (1900 m above sea level), and the rivers: Arax, Arpa, Hrazdan, Debet and Vorotan. During the last period of time, beginning from 1991, 83 new small hydro power plants with the total capacity of 102 MW (336 millions kWh of electric energy annually) have been built. Hydro power plants of Sevan-Hrazdan cascade are operating at a low level capacity, because, after the intense use of the lake water during the last crisis, the Government of Armenia decided to reduce releases from Lake Sevan to restore its potential. The water from the lake can be taken only for the irrigation needs.

Two HPP cascades and small HPPs have the total installed capacity of 1058 MW, of which:

· Sevan-Hrazdan HPP cascade has the installed capacity of 530 MW;

· Vorotan HPP cascade has the installed capacity of 400 MW;

· Dzora HPP has the installed capacity of 26 MW;

· Small HPPs have installed capacity of 102 MW.

At the same time, Armenia has still an unused hydraulic potential (both small and big rivers) of about 406 MW (or 1782 millions kWh of electric energy), which development is economically reasonable.

The Thermal Power Plants (TPPs) have the installed capacity of 1744 MW, of which:

· Hrazdan TPP has the installed capacity of 1100 MW. Four of the turbines is of condensation type, each - 200 MW, which can be operated, but now only two of them are in operation because of no need for more capacities. Now, the Gas- and Steam Turbines Unit of Hrazdan TPP with the capacity about 440 MW is under construction.

· Yerevan TPP has the installed capacity of 550 MW, including: 2x150 condensation turbines, and 5x50 heating turbines. Now, only 2x50 MW turbines are in operation because there is no need in such quantity of heat consumption. The Gas Turbine Combined Cycle Unit of Yerevan TPP with the capacity about 242 MW electrical and 30 MW thermal is put into operation in April 2010.

· Vanadzor TPP has the installed capacity of 94 MW with different capacity heating turbines. Now, none of them is in operation because there is no need for heat consumption.

The results of asset re-evaluation show that the sector’s main assets resources have already expired. The equipment is worn out and requires major overhaul, 38% of installed capacities are already over 30 years old. It is necessary to take all due measures to renew the energy sector of Armenia.

Nuclear Power Plant (NPP) has a designed capacity of 815 MW, of which Unit 2 only with 407.5 MW is in operation. Nuclear energy played a crucial role during the period of recovery from the economical crisis. Unit 1 is not operating, and unit 2 has been re-commissioned in 1995, after 6.5 years of outage. The fuel is supplied by the Russian Federation.

The high-voltage transmission network of Armenia consists of 220-110 kV lines. There are 14 substations of 220 kV and 119 substations of 110 kV. The capacity of the existing high voltage network is considered sufficient for the current and forecasted loads. The high-voltage transmission network has the interconnections with all neighbouring countries: Azerbaijan: 330, 220 and 110 kV, Georgia: 220 and 110 kV, Turkey: 220 kV, Iran: 2x220 kV. The high-voltage lines Armenia - Iran and Armenia–Georgia of 400 kV are currently under construction.

Natural gas is the most important primary energy source, and it is imported from Russia. The designed capacity of the high-pressure gas transportation network of Armenia is 17 billions m³/year. In 1980, the maximum demand for natural gas in Armenia was above 5-6 billions m³/year. There have been five main gas pipelines built, which ensured the gas delivery from three sides: Georgia, North and West Azerbaijan. Today, only the first one is operating. In 2009, the natural gas demand was 1.662 billions m³, but the expected demand by the year 2017 will be 5.5 – 6.2 billions m³/year depending on the ANPP status (shut down or in operation). The gas pipeline Iran –Armenia is now fully constructed and ready to put into operation since spring 2009, which will have the capacity of 2.3 billions m³. There are underground storage facilities for natural gas with a maximal gas storage volume of 180 million m³. Nowadays, the available gas storage volume is 130 million m³. Gas distribution in Armenia is performed through high, medium and low-pressure distribution networks.

Oil products are imported from the foreign countries, mostly utilized for transport and industry sector. During the last several years, mazut was imported into the Republic in very small quantities.

As to the renewable sources of energy (geothermal, wind, solar and waste burning), they are under study. Armenia has a considerable potential of geothermal energy, but a programme has to be developed to explore the geothermal resources and to carry out drilling activities.

The most worth-while regions suitable for the construction of wind power plants are: Vanadzor, Aragats, Lake Sevan basin and Sisian, where the wind velocity reaches 7 m/s. In December 2005, the first wind power plant was put into operation in Pushkin pass (Vanadzor region) with the installed capacity of 2.6 MW. The total capacity of the site is estimated to be 20 MW. Now, the investigations are carried out for the construction of wind power plants at other sites, too.

Armenia is a sunny country with a high level of solar radiation. Nevertheless, it is too expensive to utilize the solar energy, and the country, which appears to have very good solar radiation potential, cannot afford using it. A waste burning facility project (the construction of a station with a capacity of 10 MW in Yerevan) is under discussion as well.

The energy statistics and the historical energy consumption data is shown in Table 4.

(1) Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.

(2) Solid fuels include coal, lignite and commercial wood.

(3) Primary electricity = Hydro + Geothermal + Nuclear + Wind.

Source: IAEA Energy and Economic Database and Country Information.

1.2. Energy Policy

Before the disintegration of the USSR, Armenia, as a part of the Soviet Union, was under the unified All-Union energy policy. The electricity generated by Armenian Power Plants joined the Transcaucasien Energy System. After becoming an independent state, Armenia had to meet the open market requirements in all the branches of the industry. The energy sector and the nuclear energy sector in particular, were deeply affected by the economic difficulties during the market transition and were in need of reorganization and de-regulation.

According to the Law “On Energy of the Republic of Armenia”, the main principle of the Government policy in the Energy sector is the separation of functions of economic activity, state management and regulation. According to the main regulating principle, the inequality of conditions between the licensee and consumer is excluded. According to this Law, the functions of regulation were given to the Commission on Public Services. The level of electricity average tariff is 25 drams and since1998, is the same till April 2009, afterwards its value has increased up to 30 drams.

In March 2000, the National Assembly of RA adopted the Law “On Amendments and Additions to the Law On safe Use of Nuclear Energy for Peaceful Purposes”. In particular, one of the amendments reads: “Those objects which are of safety importance shall be constructed and decommissioned by the Law, which draft should be submitted to the Government”.

In November 2004, the National Assembly adopted the Law “On Amendments and Additions to the Law On safe Use of Nuclear Energy for Peaceful Purposes” according to which the new constructed nuclear power facilities in Armenia can be owned by all kinds of owners. The radioactive waste and spent nuclear fuel remain state owned. The Operators of nuclear facilities cannot be declared bankrupts. The similar amendment was made also to the “Law on Energy”.

On 16 of March, 2004, the amendments were made to the “Law on Licensing”, according to which it is necessary to have the license for the following activities: design, site selection, construction, operation, decommissioning, etc. of nuclear facilities, radioactive wastes storages and disposals, as well as for nuclear materials and radioactive wastes processing, transportation and other activities. The rules for obtaining licenses on these activities were established with the use of a number of the appropriate Government decrees.

On 8 of December, 2005, the amendment was made to the “Law on Population Protection in the Emergency Situations” according to which, in the case of nuclear or radiation emergency at the nuclear power plant, the functions of all involved responsible organizations shall be determined by the Government decree. On 22 of December, 2005, the Government decree N 2338 “National Plan for the Population Protection in case of Nuclear and/or Radiation Emergency at the Armenian NPP” was issued. As a result of the exercises on nuclear or radiation emergency at the nuclear power plant conducted for checking the real possibilities to use that decree, a new edition was done to the “National Plan for the Population Protection in case of Nuclear and/or Radiation Emergency at the Armenian NPP”, which was adopted by the Government decree N 194 on 17 of January, 2008.

The radiation safety and protection requirements for the plant workers and population (including critical groups and the population as generally) are stated in Government decree N 1219, “Radiation Safety Norms” and N 1489 “Radiation Safety Rules”, 2006.

By the Government decree N1296 of 1.11.2007, the Armenian Ministry of Energy Action Program was adopted according to the National Security Strategy. By this Program, it was envisaged to put into operation the new nuclear power unit (s) immediately after the shutdown of the existing one to cover the lack of capacity. According to that document, taking into consideration the needs of country energy independence, the preference is given to the 1000 MW nuclear power units.

The Law of the Republic of Armenia “On Construction of a New NPP in the Republic of Armenia” was adopted on 27 October, 2009, which will serve as a legal basis for construction of a new NPP in Armenia.

The Company “Worley Parsons” was selected in May 2009 by international tender as a management company for the construction of new nuclear power unit. Currently “Worley Persons” Company finalizes the development of “Acceptable for Bank Feasibility Study” document, which is necessary for involvement of investors.

Results of the comparative analysis made by “Worley Persons” Company for selection of nuclear technology were submitted to the Prime-Minister of RA in September 2009. As a result, under the Decree N1458 of the Government RA dated 3 December, 2009 for the nuclear island of a new NPP the Russian NPP-92 design (capacity - 1060 MW; operation lifetime - 60 years), which has a European safety certificate, was approved.

Decree “On Establishment of a Closed Joint-Stock Company Aimed at Construction of a New NPP in the Republic of Armenia” was adopted by the Government of Armenia on 3 December, 2009. A joint “Metsamorenergoatom” CJSC was established with the involvement of RA Government and “Atomstroyexport” CJSC, which was delegated by “Rosatom” Russian State Corporation. The established, “Metsamorenergoatom” CJSC is open for other investors as well. On March 26, 2010 the ROSATOM State Corporation and the RA Ministry of Energy and Natural Resources signed an agreement on nuclear island equipment reservation aimed at equipping of the new nuclear unit in the Republic of Armenia. Currently a draft agreement between the RA and RF Governments is being developed to envisage the nuclear island equipment supply provisions. Other nuclear unit components of the project, i.e. Turbine Island, I&C systems are the subject of negotiations with suppliers. Also the activities are implemented for involvement of other investors.

1.3. The Electricity System

1.3.1. Policy and Decision Making Process -Including Planning the Electricity System

A special attention was paid by the Government on restructuring the Electricity sector. A number of Laws in energy were adopted to achieve that target. A program for improvement of metering, billing and collection of payments for electricity, heat and natural gas has been implemented, together with the converse of accounting to international norms and standards and annual auditing of the company's financial reports by independent auditors. A program has been implemented to organize collections through banks. Though there are difficulties in the whole economy of the country, the Government gives priority to budget payments for the electricity provided to budget organizations, as well as compensation for the electricity consumed by irrigation, drinking water, industry and electrical transport companies.

The implementation of a stabilization policy with the crucial role of restarting the ANPP allowed the country to overcome the electric energy crisis of the post-Soviet period. Now Armenia is covering its electricity demand completely and can ensure the export of electric energy to neighbouring countries. In the near future, however, additional energy sources may be required as the economy of the republic is recovering and the living standard is increasing steadily.

For Armenia, it is obligatory to be involved in the regional power market that is currently in the process of formation and foresees the establishment of a circular power system of Black Sea countries, as well as creation of North – South parallel operation relations (Russia – Georgia – Armenia – Iran, and others).

So, in future the leading role in competition for providing services to regional power market will be given to a country which is able to produce base-load electricity from the nuclear unit with the minimal emissions of green-house gases. We are confident that Armenia meets these requirements and is ready to undertake this role at the region.

1.3.2. Structure of Electric Power Sector - Generation, Transmission and Distribution System

In May 2008, the Ministry of Energy of RA was re-named and became the Ministry of Energy and Natural Resources of RA. It is responsible for the sustainable electric energy supply to the consumers, earth’s interior economic potential determination and other tasks relevant to those areas. It is also under its responsibility to define the policy for the whole Energy sector development.

The Nuclear Safety Regulation State Committee under the Government of RA duties are: performing the State nuclear energy regulation and supervision over the nuclear power objects, issuing the licenses and controlling the license requirements fulfillment. Its main objective is to secure the protection of the population, the personnel involved into the nuclear industry, and environment.

The Public Services Regulatory Commission of the RA is responsible for the antimonopoly regulation. The key functions of the antimonopoly regulation are tariff regulation and licensing of entities in the energy sector.

The structure of management of the Energy Sector in Armenia is shown in Figure 2.

FIG. 2. Structure of management of the Energy Sector

The Operator of the Electric Energy Network is responsible for the dispatching activity, and Calculation Centre is in charge of calculation of wholesale trade of electric energy. It also approves the balance between the participants of the trade.

1.3.3. Main Indicators of the Electricity Production and Installed Generating Capacity and of the Energy Related Ratios

In 2009, the total installed capacity of the electric energy generating plants in Armenia was 3,050 MW(e). In that year, electricity production was 5.64 billion kWh. Table 5 shows the historical statistics of the electricity production and its distribution by plants types, as well as capacities of those plants. Table 6 - the energy related ratios. In Armenia, the primary energy consumption per capita is around 0.56 toe/capita in 2009.

⁽¹⁾ Electricity losses are not deducted.

Source: IAEA Energy and Economic Database; Country Information.

(1) Net import / Total energy consumption.

Source: IAEA Energy and Economic Database; Country Information.

2. NUCLEAR POWER SITUATION

2.1. Historical Development and current nuclear power organizational structure

2.1.1. Overview

A decision to construct a nuclear power plant in Armenia was made by the former USSR Council of Ministers, and the appropriate decree was issued in September 1966. In 1968, the Armenian Branch of ‘’Electrosetproject’’ Institute completed the pre-feasibility study for constructing the Armenian NPP (ANPP) under the project “The Scheme of NPP Contribution to Power Grid”. That document included a schedule to commission Unit 1 in 1973, and Unit 2 – in 1974.

The technical specification to design the ANPP was developed by “Teploelectroproject” in 1968 and approved in August 1969 under decree N 1624 R.C. of the former USSR Ministry of Energy.

More than 20 potential sites were considered for the ANPP construction, and finally a site was selected in the western part of Ararat valley, 16 km far from Turkish border, 10 km to the north-east of region centre – Hoktemberyan (Armavir), and 28 km far (to the west) from Yerevan. Location of the ANPP is shown in Figure 3.

FIG.3. Map of locations of all electricity generating power plants and main high voltage interconnections with the neighbouring countries

In accordance with that specification, the capacity of the ANPP (first stage of construction) with VVER-440 type reactors was to be 815.0 MW, each unit of 407.5 MW. The ANPP design life-time was specified to be 30 years.

The comprehensive studies and analyses showed that seismic conditions of the ANPP site were characterized by the level that corresponded to the eight-point intensity according to MSK-64 scale. That was the first nuclear power plant in the USSR intended to be constructed in the region of high seismicity.

The specific nature of the ANPP site - its seismicity - caused significant changes in VVER-440/230 design, not only in construction but also in design of reactor facility in the whole, and the reactor was assigned with the new identification – V-270. It was based on the project of Unit 3 and 4 of the Novovoronezh NPP.

The reactor building, auxiliary building, air chimney, as well as the buildings and structures containing equipment and instrumentation of safety systems or safety-related on-line systems and communications connecting these structures were assigned with category of High Importance. They were considered to have one point more seismic resistance than that of the ANPP site.

The Armenian Nuclear Power Plant was commissioned in 1976, achieving the initial criticality for Unit 1 on 22 December 1976, and for Unit 2 - on 5 January 1980. The units were put into commercial operation on 6 October 1977 and on 3 May 1980, respectively.

In 1981, the technical-economic background was developed for the further expansion of the ANPP (the second stage of the plant) taking into consideration the needs of Yerevan city in a central heating. The technical-economic background was approved and coordinated with all the relevant organizations. In 1985, the Gorky Department of “Atomteploelectroproect” Institute prepared a project: “Armenian NPP. Its expansion is taking into consideration the Yerevan city central heating”. The excavation work was started. The foundation pits for two new units (Unit 3, Unit 4) were dug through. But it was the Chernobil disaster of 1986 that served a reason for the Government of the Republic to make a decision to refuse further expansion of the ANPP. The work was stopped.

After the 1988 earthquake, though the Power Plant was not damaged, the Council of Ministers of the USSR decreed to shut down the ANPP as a precautionary measure. Unit 1 was shut down on 25 February 1989 and Unit 2 on 18 March 1989. The units were not decommissioned but kept in prolonged shut down condition.

Apart from the short period of regaining independence, there have been no strong antinuclear movements in Armenia. The current sentiment of the public can be explained not by lack of awareness of the risks involved by the utilization of nuclear energy, but, in the face of the difficult economic conditions, by the considerably lower price of “nuclear electricity” which outweighs its possible risks

In April 1993, the Government of Armenia decided to restart Unit 2 of the ANPP in order to overcome the severe economic crisis taking into account the lack in national energy resources. After 6.5 years of outage, with the technical and financial help of the Russian Federation, Unit 2 of the ANPP was restarted in November 5, 1995. Unit 1 remained in a stand-still regime.

After the ANPP restart, 29.09 billion kWh of electric energy has been generated by January 1, 2010, keeping the load schedule of Armenian power system.

2.1.2. Current Organizational Chart

Following organizations, institutions and state bodies are currently involved in activity related with the operation of ANPP:

The Armenian Nuclear Regulatory Authority (the ANRA) - was established in 1993. The ANRA was authorized to be a regulation body in the area of nuclear and radiation safety, to perform inspection activity and issue the licenses for the appropriate applications (See more detailed information in Section 3.1.).

The Ministry of Energy of RA was established in 1992. During the period of preparation for the ANPP restart (1993-1996), the Armatomenergo was established under the Ministry of Energy. Armatomenergo was authorized with the functions of Operator of the ANPP. On 4 of April 1996, by the Government decree N 98, the operation of the "Armatomenergo" was ceased, and the CJSC "Armenian NPP" was given the functions of Operator. At the same time, the Department of Atomic Energy was established at the Ministry of Energy of RA. The Department participates in the elaboration of Armenian energy and nuclear energy development strategy, organizes the development of list of measures on the ANPP safety upgrading and decommissioning program; collaborates with the IAEA and other international nuclear energy organizations.

The "Armatom" Institute - was established in 1973. Having been providing an engineering support to the ANPP, the Institute includes in its activity such work as: implementation at the ANPP of diagnostic systems; implementation of Safety Parameters Display System (SPDS), development of compact and multi-functional simulators. "Armatom" is participating in development of "Deterministic Analysis of ANPP Unit 2" and "Probabilistic Safety Analysis of ANPP Unit 2" documents.

CJSC "Atomservice" - was established in 1987. The company took active part in the plant systems adjusting and testing programs implementation during the period of preparation for the ANPP Unit 2 restart. It continues to perform the same activity nowadays.

CJSC "Atomenergoseismoproject" - was established in 1983. During the period of preparation of Unit 2 of the ANPP for its restart, a set of works on finishing investigations of the plant seismic conditions was performed by CJSC "Atomenergoseismoproject" for final resolution on all the issues relevant to the plant restart and further operation. One of the major results of conducted investigations was that the ANPP has been erected on a whole (non-destructed) basalt block, i.e. absence of a tectonically active break under the ANPP site was proved.

There are several construction, repair, mounting and other organizations also related with the operation of the ANPP.

2.2. Nuclear Power Plants: Status and Operations

2.2.1. Status of nuclear power plants in operation, under construction, closed down.

The ANPP consists of two nuclear power units of VVER-440 type. Since 1989, Unit 1 is in a state of stand-still. Since its restart (1995), Unit 2 of the ANPP has been in operation. Unit 2 installed gross capacity is 407.5 MW. Table 7 shows the status and some other indicators of the nuclear power units of the ANPP.

The activities have been initiated to begin the preparation works on construction of new nuclear unit (s) in Armenia (see 2.2.4).

2.2.2. Performance of NPPs.

In 2005, the ANPP generated 2.72 billion kWh, which is its maximum generation since the ANPP restart.

The main organizations and institutions involved in nuclear energy in Armenia are: the Ministry of Energy and Natural Resources, The Nuclear Safety Regulation State Committee under the Government of RA, CJSC “ANPP”, CJSC “Armatom”, CJSC “Atomservice” and CJSC “Atomenergoseismoproject”. Besides, some technical support has been providing by such organizations of Russian Federation as: OKB “Hydropress” - main reactor designer; “NIIAEP Nizhnii Novgorod” - main NPP designer; RNC “Kurchatov Institute” – scientific management, and others.

The Figure 4 shows the dynamics of the significant safety events based on INES scale.

FIG.4. Significant safety events dynamics based on INES scale

In 1995, Unit 2 of the ANPP had five emergency events of level “0” on the International Nuclear Event Scale (INES) (below scale, deviation). In 1996, there were 8 emergency events occurred at the ANPP, including: 1 – of level “1” (anomaly), 7 of level “0” on the INES scale. In 1997, there were 5 emergency events occurred at the ANPP, including: 2– of level “1”, 3 of level “0” on the INES scale. In 1998, there were 7 emergency events occurred at the ANPP, including: 2– of level “2”, 1– of level “1” and 4 of level “0” on the INES scale. In 1999, had one emergency shutdown and one event of level “1”. In 2000, there were 3 events reported, one event was rated level “1”, and two events were rated level “0”. In 2001, there were 8 emergency events occurred at the ANPP, including: 3 – of level “1”, 5 of level “0” on the INES scale. In 2002, there were 8 emergency events of level “0” on the INES scale occurred at the ANPP. There were 2 emergency shutdowns. In 2003, there were 2 emergency events, 1 of level “0” and 1 of level “1” on the INES scale. There was 1 emergency shutdown in 2003. In 2004, there were 2 emergency events of level “1” on the INES scale. In 2005, 2006 and 2007 no emergency event on the INES scale occurred. In 2008, during the operation of Unit 2 of the ANPP, 1 event of "1" by INES was registered, and the reactor was screamed which was caused by the accident in the grid. In 2009 there were 5 recorded events in the plant operation 4 events were classified according to INES level “0” and one event was classified as safety significant level “1”event on the INES scale.

2.2.3. Plant Upgrading and Plant Life Management

The issues of the ANPP safety upgrading are of much importance for the Armenian Ministry of Energy and Natural Resources being first–rate priority. The safety level of the ANPP during the times of very limited financial resources was one of the main concerns of the Armenian Government. After numerous consultations with the experts from the USA, Western Europe countries and Russian Federation, being also assisted by the experts from the IAEA, Armenian specialists developed a new programme of the ANPP safety-upgrading. It was called “List of safety upgrading activities for the period of 2009 – 2016 of Unit 2 of the Armenian NPP”. The safety upgrading process, having been permanently implemented at the ANPP, is being realized according to the provisions of that program. Since the restart of the ANPP, up to 01.01.2010, there have been completed more than 184 engineering activities and 1389 safety improvement measures, so the plant can withstand emergency situations without failures. Historical annual upgrading measures are shown in Figure 5.

FIG.5. Historical annual upgrading measures

In the Summer of 2005, the DG of the IAEA, Mr. El Baradey, came to visit Armenia. During the high-level meeting, he assured the Armenian side that the IAEA will assist to coordinate the activities on the upgrading of the ANPP with the donor countries. In 18-19 May 2010, the 4^th IAEA working meeting was held on Coordination of International assistance to the ANPP safety upgrading in Yerevan. The decision was made to review the existing “List of safety upgrading activities for the period of 2009 – 2016 of Unit 2 of the Armenian NPP” on the base of the documents SAR and PSA.

In May 2011 the plant will be hosting IAEA OSART Mission on integrated assessment of the ANPP operational safety

2.2.4. Nuclear power development projections and plans.

The Energy Policy of Armenia is focused on realization of the strategy program for providing the country with the required quantity of electric energy and gas.

In 2001 - 2002, in the frame of the IAEA Program on Technical Cooperation, there was developed the project titled “Energy and Nuclear Power Planning study for Armenia” which was published in July 2004 as TECDOC -1404. The document included the future energy demand forecast for Armenia and the capacities which will be needed to cover that demand. During the study, two options of the development of the Energy Sector of Armenia were considered:

• with the use of the thermal power plants only;
• with the use of both the thermal and nuclear power plants.

The second option of the Energy sector development, taking into account the criteria of energy safety and energy independence, ecology, as well as from the social point of view, was preferable. On the base of this study, the “Least Cost Generation Plan” and “The Comprehensive National Energy Strategy and Energy Sector Improvement Action Plan” were developed in 2006. Based on these two documents, “The Armenian Ministry of Energy Action Program According to the National Security Strategy” was adopted by the Government decree N1296 of 1.11.2007. With this Program, it was envisaged to put into operation the new nuclear power unit (s) immediately after the shutdown of the existing one to cover the lack of capacity. According to that document, taking into consideration the needs of country energy independence, the preference was given to the 1000 MW nuclear power units.

In the frame of USAID assistance, the “Feasibility Study for the construction in Armenia of a new nuclear unit” and “Study on assessment of environmental impact” were developed. The presentation of those two documents took place on 24 of September 2008.

Starting from 2009 activities for implementation of a new nuclear unit construction project was undertaken. An international tender held in 29 May, 2009 for selection of a Managing Company resulted in contracting with “Worley Parsons” Company.

“Worley Persons” Company currently finalizes development of “Acceptable for Bank Feasibility Study” document, which is necessary for involvement of investors. At present the Ministry of Energy and Natural Resources of the Republic of Armenia assisted by “PA Consulting” Company, funded by the US Government, is reviewing developed earlier by the same company “Document on Input Data for Impact of a New NPP in Armenia to Environment” aimed at establishment of a new elaborated document – “Environmental Impact of a New NPP Construction in Armenia”.

“Worley Persons” Company has analyzed as potential options the following existing reactor prototypes: AP-1000 (USA), WER-1000 (RF) and ATMEA-1 (France-Japan). Results of the comparative analysis made for selection of nuclear technology were submitted in September 2009 to the Prime-Minister of RA. As a result, under the Decree of the government dated 3 December, 2009 for the nuclear isle of a new NPP there was approved the Russian NPP-92 design, which has a European safety certificate.

A Law of the Republic of Armenia was 27 October, 2009 adopted “On Construction of a New NPP in the Republic of Armenia”, which would serve as a legal basis for construction of a new NPP in Armenia, because according to the valid in Armenia law “On Safe Usage of Nuclear Energy in Peaceful Purposes”, construction in the republic of a new NPP or decommissioning of the existing NPP are possible only after adoption of a relevant law.

Armenian Government 3 December, 2009 adopted a Decree “On Establishment of a Closed Joint-Stock Company Aimed at Construction of a New NPP in the Republic of Armenia”. A joint “Metsamorenergoatom” CJSC was established with the involvement of RA Government and “Atomstroyexport” CJSC, which was delegated by “Rosatom” Russian State Corporation. The established, “Metsamorenergoatom” CJSC is open for other investors as well.

On March 26, 2010 the ROSATOM State Corporation and the RA Ministry of Energy and Natural Resources signed an agreement on nuclear island equipment reservation aimed at equipping of the new nuclear unit in the Republic of Armenia. Currently a draft agreement between the RA and RF Governments is being developed to envisage the nuclear island equipment supply provisions. Also the activities are implemented for involvement of other investors and suppliers of the rest nuclear unit components, i.e., turbines and control systems, in the project.

The activity on the Armenian NPP site seismic re-evaluation is performed with means of the Republic of Armenia. The Technical Task for seismic re-evaluation of the Armenian NPP has been developed and agreed with IAEA. The results of the site seismic re-evaluation will be submitted for expertise to IAEA in August 2010.

2.2.5. Decommissioning: Information and Plans

A number of Government decrees were adopted with regard to decommissioning of the Armenia NPPs:

• Special fund for decommissioning of Armenian NPP was created under the Ministry of Finance of RA, and the Armenian NPP regularly makes allocations to that Fund from the amount included in Armenian NPP electricity tariff. The Armenian NPP Decommissioning Fund is functioning properly;
• The Management Board of the Fund was created, the Chairman of the Board was elected - the Vice Prime Minister of RA, the Board includes a number of Government members;
• The ANPP Decommissioning Strategy was adopted by the Government of Armenia in November 2007.

Under the framework of Action Plan of EU Neighbourhood Policy, the negotiations are carrying out on the matter of providing technical assistance for development of the ANPP Decommissioning Plan, as well as development of Radioactive Waste Strategy. The further proceedings on this way will mostly depend on ANPP Decommissioning Plan.

2.3. Supply of NPPs.

Both units of the ANPP with the VVER- 440 (V-270) type reactors were designed and constructed by organizations of the former Soviet Union under the supervision of the Ministry of Energy and Electrification of the USSR. The design of the first stage of the plant was developed in 1969-1970. The chief scientific supervisor was Kurchatov Institute of Atomic Energy (Moscow). Now it is called RNC “Kurchatov Institute”. The chief design organization was Thermoelectroproect (TEP), Gorki. Now it is called NIAEP, Nizhny Novgorod. The main reactor construction organization was OKB “Gidropress”, Podolsk. The “Izhora Factory” Leningrad Enterprise was the manufacturer of the reactors and systems. The turbines were manufactured by the Kharkov Turbine Plant (KHTP). The electric generators were supplied by the “Electrosila” plant of Leningrad. The building-construction work was performed by the “Gidroenergostroy”, Yerevan.

All the nuclear fuel necessary for the ANPP operation was delivered in the past and has been delivering now by the “TVEL” Concern of Russian Federation.

2.4. Operation of NPPs

In Armenia, the Armenian NPP is under the State ownership according to the Law on "Safe Use of Nuclear Energy for Peaceful Purposes".

According to the Governmental decree N 98, 04.04.1996, the CJSC "Armenian NPP" was created and authorized to be the Operator of nuclear power plant. For other purposes, such as liability to foreign countries, the State is assumed to be the operator.

In the past, the ANPP had debt for the fresh nuclear fuel deliveries from the fuel supplier (Russian Federation). To cover that debt and in order to have the fresh nuclear fuel supply to the ANPP without delays, on 17 of September 2003, the Government decree N 1211 was issued "On Transfer into the Trust Management of the Rights Certified by the Shares". According to this decree, the agreement was signed between the Inter RAO EES and the Ministry of Energy of RA on transfer, for 5 years, of 100 % of shares of the ANPP to the Inter RAO EES of Russia, and the latter is to fulfil the financial management of the ANPP. Inter RAO EES is obliged to deliver fresh nuclear fuel to the ANPP in time. Russian side is responsible for the management of the plant financial flows. The nuclear power plant remains the property of the Republic of Armenia. Currently, the negotiations are under way to prolong the above mentioned agreement. On 04 of December 2008, the Government decree N 1411 was issued "On Transfer into the Trust Management of the Rights Certified by the Shares", according to which the financial management of the ANPP by Inter RAO EES was extended for 5 years.

2.5. Fuel Cycle and Waste Management

Armenia has no nuclear fuel cycle industry and uses open nuclear fuel cycle scheme. Up to now, all the nuclear fuel has been supplied by Russia. Originally, the spent nuclear fuel generated by the ANPP was managed by the Soviet Union central agencies of reprocessing and final disposal of the spent nuclear fuel. The recovered uranium and plutonium were retained by the central agencies in the Soviet Union.

The ANPP is operating with the three-year fuel cycle. The spent nuclear fuel, before its transfer to the dry storage, is being kept within the wet nuclear fuel storages in the reactor building - fuel ponds.

In 2000, the construction of the first stage of spent fuel dry storage was completed. The construction was commissioned by the French firm Framatom and financed by the French Government. The spent fuel dry storage facility has been put into operation, and all the transportations of spent fuel were performed according to the requirements of the license given by the ANRA. Now, all the volume of the storage is filled with the spent fuel.

In 2005, the agreement was signed with French company TN International for construction of additional three stages of the dry storage facility. The financing was allocated from the State budget of RA. The second stage has been already completed, the storage was put into operation in spring 2008, and the first part of the spent nuclear fuel has been transferred into the storage.

The third stage of spent fuel dry storage construction is planned to be started on 2011.

According to the ANPP design, the annual Unit 2 radioactive waste (radwaste) generation is: 308 m³ of solid LLW; 1,5 m³ of solid MLW; 0,3 m³ of solid HLW; 108 m³ of liquid MLW. At the ANPP, there are storages for both solid and liquid radwaste.

High-level waste is stored in a special room of the Reactor building. The storage area consists of 380 cells. The storage capacity is 78.34 m³.

Medium-level radwaste is stored in the Special Building. Storage capacity is 1001,22 m³. Also, the deep evaporating facility containers are stored temporarily on the upper unheated floor of the Special Building. Its effective storage volume is 655 m³ (3000 containers).

Liquid radwaste is stored in the Special Building. Liquid wastes (evaporator residues) generated in the evaporators during drain water reprocessing are collected in the evaporator residue tank.

The storage facility for low-level radwaste consists of two compartments, each measuring 27x36x8.9 m. The total storage volume is about 17050 m³.

In March of 2007, the “Radioactive Waste Decontamination” CJSC was transferred under the Ministry of Energy and Natural Resources. Currently, the medical and industrial ionizing sources are kept at the facility. The work is under way to modernize the “Radioactive Waste Decontamination” CJSC storage facility to keep also the middle–level liquid radwaste generated by the ANPP.

The final spent fuel and high-level radwaste treatment and disposal concept will be developed and included into the ANPP Decommissioning Program.

2.6. Research and Development Activities

In 2004, Armenia joined the International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO), IAEA initiative, in order to address the needs of economic, safety, non-proliferation and waste management aspects of nuclear energy and its fuel cycle with innovative technology. Armenia fulfilled the Collaborative Project (CP) entitled “Implementation Issues for the Use of Nuclear Power in Smaller Countries”. The project was supported by a number of countries. The results of this CP are providing the small countries with the opportunity to discover their problems that could arise with the construction of new nuclear units in their countries. Currently, another INPRO “SMALL” CP is being performed.

2.7. International Co-operative Projects and Initiatives

Armenia has bilateral cooperation, mostly concerning safety of the ANPP, with such countries as Argentina, France, Italy, Russian Federation, UK and USA. Armenia also participates in several international projects developed in framework of co-operation under the aegis of IAEA, TACIS (EC) and USAID.

Very close co-operation is established with the IAEA. Armenia has become a member of this organization since 1993. IAEA experts have been participating in many various assistance projects since then. When in April of 1993 the Government of Armenia made the decision to restart Unit 2 of the ANPP, the IAEA experts participated actively in pre-commissioning investigations and evaluation of the condition of plant equipment. Moreover, they elaborated the whole concept of Unit 2 re-commissioning. Armenia is collaborating with the IAEA in the field of nuclear safety upgrading. At present, several national programmes of the ANPP Unit 2 safety upgrading are in different phases of implementation. In 2011, it is envisaged to conduct an OSART mission at the ANPP. The IAEA is permanently assisting the ANRA providing them with the appropriate support and recommendations.

Since 1996, the US DOE and EC started, within the framework of TACIS Assistance Programs, implementation of projects aiming at technical assistance in upgrading a level of the ANPP operation, as well as modernization of the plant technological equipment.

During the years, some several countries – France, Great Britain, Czech Republic, Italy and Russian Federation (since 2008), have joined the Assistance Programs.

Armenia cooperates with Argentina in the frame of bilateral project "Creation in Armenia of a Center for training and qualification in Non-Destructive Metal Testing Techniques" with the assistance of the IAEA.

There are many joint projects with the Russian Federation within the framework of the Nuclear Safety Assistance Program. In 1996, an agreement was signed between the ANPP and ROSENERGOATOM on industrial and technical-scientific co-operation. In 2000, the agreement was signed between the Governments of RA and RF on "Cooperation in the field of peaceful use of nuclear energy".

In the frame of bilateral cooperation between the two countries, Armenia and USA, in 2001, within the "Armatom" institute of RA, the International Nuclear Safety Center of Armenia was created. The Joint Statement on cooperation between International Nuclear Safety Centers of Armenia and USA was signed on 07.02.2001.

Since 1996, the ANPP is a member of World Association of Nuclear Operators (WANO). The Moscow Centre of WANO has commissioned two inspections relevant to the ANPP operational safety.

The ANRA has agreements for co-operation with Nuclear Regulatory Authorities of the following countries: Russia, USA, Argentina and Ukraine. The ANRA is a member of the FORUM organization, which members are the nuclear regulatory authorities from the countries operating VVERs. The ANRA participates also in the CONCERT Group work.

In 2007, the Government of Armenia made a Decision on the Republic of Armenia to join the Agreement between the Governments of the Republic of Kazakhstan and Russian Federation on establishment in Angarsk of International Uranium Enrichment Center.

Armenia has been invited to join the GNEP. 01.10.2008 the agreement was signed, and Armenia has become a member of the GNEP the participation in which would provide significant benefits to Armenia’s nuclear program.

2.8. Human resources development

The nuclear energy sector in Armenia is not only an important branch of industry providing the country with the electric energy, but also ensures the employment for the population of the republic. Nowadays, more than 2000 employees are involved into the nuclear energy sector activity being occupied both at the ANPP and in the sphere of nuclear sector supporting services. The majority of them were graduated from the Armenian State Engineering University and Yerevan State University. The above mentioned institutes continue to prepare specialists for the nuclear energy branch.

In the frame of the IAEA ARM0/005 national project, Human Resource Development document was developed for the new nuclear unit construction. This document is a part of the Feasibility Study of the new nuclear unit construction, and with it, the needs in human resources have been determined for the required teaching and training of personnel that will be involved in construction and operation of new unit. Based on those needs in human resources determination, the IAEA has approved the 2009 -2011 project called “Development and Implementation of Integrated Human Resource Management Improvement System in the Armenian Nuclear Power Sector” which is to improve the specialists teaching in the nuclear energy field at the State Engineering University of Armenia and Yerevan State University.

3. NATIONAL LAWS AND REGULATIONS

3.1. Safety Authority and the Licensing Process

The state authority for supervision on nuclear and radiation safety was established by the Government decree N573, 16.11.1993. It was called the State Department for Supervision on Nuclear and Radiation Safety of Utilization of Nuclear Energy at the Government of RA. By the same decree, the Department Statute was approved and the authority was charged with the functions of inspections.

By the Government decree N70, 19.02.2000, the Department was authorized to have also the regulating functions, and, according to that decree, it prepared a new Statute which was approved by Governmental decree N385, 22.06.2000. The Department had a new name - Armenian Nuclear Regulatory Authority (ANRA). The ANRA was under a direct subordination of the Armenian Government and independent from those organizations responsible for development and utilization of atomic energy. According to its new Statute, the ANRA was to organize and perform state supervision and inspections over utilization of nuclear energy, as well as its regulation.

On 24 of May, 2001, according to the Government decree N 452, the ANRA was awarded with the authorization of State regulation on protection against the irradiation from ionisation sources and their safety.

The status of the ANRA was changed again on 27 of June 2002 according to the Government decree N 912 in order to respond to the reforming principles implemented into the Armenian System of Government Management. The ANRA was included into the Ministry of Environmental Protection of RA. On 26 December 2002, the new Statute of the ANRA was approved by the Government decree N 2183. The ANRA was re-named to be the Inspection for State Supervision on Nuclear and Radiation Safety of Utilization of Nuclear Energy under the Ministry of Environmental Protection of RA. According to the new Statute, the ANRA was authorized with the following key duties: to perform the State regulation within the field of nuclear energy utilization with the main objective to secure the protection of the population, the personnel involved into the nuclear industry, and environment.

In accordance with the Ordinance of the President of Armenia adopted on 20 May 2008, the ANRA was reorganized into the State Committee under the Government of the RA on Nuclear Safety Regulation. Now, ANRA’s task is the state regulation at atomic energy utilization (safety of nuclear facilities, the safe use of ionizing radiation sources, the safe management of radioactive waste, and the safe transport of radioactive and nuclear materials) aimed to ensure the safety of population and personnel, environmental safety and to defend safety interests of the Republic of Armenia.

Armenia has a single-stage licensing process for NPP, and the licensing authority is the ANRA. The licensee is responsible for the safety of the NPP. The licensee is obliged by the license to:

• Guarantee the keeping of principles, criteria and requirements on the nuclear and radiation safety, as well as the conditions or acts of the temporary operation permission;
• Inform ANRA on the deviations of the conditions of the temporary operation permission, as well as the incidents and emergencies during NPP Unit operation.

On 25 of April, 2001, according to the Government decree N 342, the Science-Research Centre of Nuclear and Radiation Safety was established at the ANRA with the aim to enable the ANRA to carry out an independent expertise activity.

On the base of the Government decree N 389, 22.08.1994, all the rules and norms applicable to nuclear power in Russia have been accepted in Armenia. The ANRA is aware of the fact that some of those regulations need revision. This process is constantly underway.

3.2. Main National Laws and Regulations in nuclear power

The following laws and Government decrees concerning the activities in the field of nuclear energy use are in use in Armenia:

• Law on "Implementation of modifications and additions both in the Code of RA on administrative and criminal legal violations", entered into force on 30 November 1996.
• Law on "Energy of the Republic of Armenia", entered into force on 1 July 1997.
• The new Law on "Energy of the Republic of Armenia" entered into force in March, 2001, and replaced an old one.
• Law on "Safe Use of Nuclear Energy for Peaceful Purposes" entered into force on 1 March 1999. The amendment to the Law on "Safe Use of Nuclear Energy for Peaceful Purposes" entered into force on 21 March 2000.
• Law "On the Export Control for the Goods of Dual Purpose and Technologies and their Transit Transportation through the Territory of Armenia". Entered into force in October 2003.
• Law "On Amendments and Additions to the Law On safe Use of Nuclear Energy for Peaceful Purposes" entered into force on 9 of November 2004.
• The Government Decree N389, 22.08.1994 on the "Implementation in Armenia of Regulations and Standards on Nuclear and Radiation Safety which are in force in the Russian Federation" entered into force.
• The Government Decree N401, dated 04.07.1995 on "Introduction of Additions to the Government Decree N161, dated 05.03.1991" (about the types of activities that are subject to licensing).
• The Government Decree N331, dated 08.12.1995 on "Restart of the ANPP Unit 2, and the Measures for Ensuring its Further Safe and Uninterrupted Operation".
• The Government Decree N465, dated 19.07.1999, approved the list of objects, which are of safety importance in the field of nuclear energy use.
• The Government Decree N769, dated 22.12.1999, approved the list of operations and work positions, which are of safety importance in the field of nuclear energy use.
• The Government Decree N746, dated 13.12.1999, approved the "Order of Evacuation of Population from the Contaminated Territories".
• The Government Decree N679, dated 25.10.2000, approved the "Order of Providing the Population with the Individual Protection Means".
• The Government Decree N640, dated 12.07.2001, approved the "Rules for Organizing and Conducting the Safety Expertise in a field of Nuclear Energy Utilization".
• The Government Decree N1263, dated 24.12.2001, approved "Special Rules for Nuclear and Radioactive Materials Transportations".
• The Government Decree N765, dated 16.08.2001, approved the "Order of State Registration of Ionisation Irradiation Sources".
• The Government Protocol Decision N51, dated 13.12.2001, adopted the "Principal Positions on Planning and Realisation Activities for the Nuclear and Radiation Accidents Resistance".
• The Government Decree N931, dated 27.06.2002, approved the "Nuclear and Radioactive Materials Safety Transportation Rules".
• The Government Decree N2013, dated 21.11.2002, approved the "Requirements to the Volume and Structure of Safety Analysis Report on the ANPP Unit 2".
• The Government Decree N121, dated 30.01.2003, approved the "Order of Licensing on the Reprocessing, Purification, Storing, Transportation and Deposing of Dangerous Wastes".
• The Government Decree N1231, dated 11.09.2003, approved the "Concept of the Armenian NPP and Nuclear Materials Physical Protection and Security" and the "Rules for Physical Protection of Nuclear Installations and Nuclear Materials".
• The Government Decree N1597, dated 21.10.2004, "On Fulfillment of Obligations Taken by the Republic of Armenia in Accordance with the Protocol Additional to the Agreement "Between the International Atomic Energy Agency and the Republic of Armenia Required in Connection with the Treaty on the Non-proliferation of Nuclear Weapon" signed between the Republic of Armenia and the International Atomic Energy Agency for the Application of Safeguards"