Armenian Government Establishes Company to Oversee New Nuclear Power Plant Construction

YEREVAN — The Armenian government has approved the creation of a closed joint-stock company with a charter capital of 200 million drams (20,000 shares with a nominal value of 10,000 drams each) to build a new nuclear power plant, replacing the aging facility at Metsamor.

Minister of Territorial Administration and Infrastructures Gnel Sanosyan stated that the company will evaluate foreign investors’ proposals on the design and cost of Metsamor’s new power-generating unit and recommend a final decision to the government within two years. It will also manage the planned plant, Sanosyan said during a cabinet meeting in Yerevan.

Sanosyan revealed that, in line with the energy development strategy, a new power unit of at least equal capacity must be built next to the current nuclear power plant by 2040, following the end of its operational life. The new company will organize this process in accordance with IAEA recommendations.

The company will conduct comparative studies of all proposed technologies and feasibility studies, providing the government with recommendations. It will then negotiate and prepare the necessary documents for the construction, financing, ownership, and operation of the new nuclear power plant.

The existing Armenian Nuclear Power Plant, the only one in the South Caucasus region, is located near the town of Metsamor, approximately 30 kilometers west of Yerevan. The plant is a core source of electricity in the country, providing up to 40% of total production. Its operational life has been extended until 2026, with ongoing work to further prolong it for another 10 years.

Plans are in place to construct a new nuclear power plant within 8-10 years. Previously, Kirill Komarov, First Deputy Director General of Rosatom, the Russian nuclear operator, told the ARKA news agency that the corporation could offer Armenia nuclear reactors with capacities ranging from 50 to 1000 MW. He mentioned the possibility of assembling a reactor of any capacity from 50 MW blocks.

Both Russia and the United States have shown interest in the project, which requires billions of dollars in investment. In May 2022, U.S. Secretary of State Antony Blinken and Armenian Foreign Minister Ararat Mirzoyan signed a memorandum of understanding on “strategic nuclear cooperation” between their countries. A senior U.S. State Department official said a year later that Washington is “assessing the feasibility” of building a nuclear plant equipped with small modular reactors (SMRs) in Armenia.

In a related development, senior executives of French nuclear reactor firm Framatome visited Armenia last week. They met with the secretary of the country’s Security Council, Armen Grigorian, who reportedly hailed France’s “interest in developing the Armenian atomic energy sector.”

The Framatome delegation, accompanied by the French ambassador in Yerevan, Olivier Decottignies, also visited the Metsamor plant and held talks with its management. In a July 23 statement, the Metsamor administration said they discussed “the possibility of France’s involvement” in the new reactor’s construction and expressed readiness to cooperate with the French side on this important matter and explore proposals on reactor technologies.