Electricity Price Increasing Because of SHHPs?

Electricity Price Increasing Because of SHHPs?

EcoLur

SHPPs produce less energy than it’s calculated and planned by the Public Service Regulatory Committee, as Energy and Natural Resources Yervand Zakharyan said on 11 November.

Under the official information, from 1 January to 31 December 2013 the SHPPs produced less than 80 million kW/h electricity. From 1 July to 31 June 2013 (marginal year) 176 million kW/h less electricity was produced, while till the end of this year – 1 January, the deficit will make up 186 million kw/h, under the forecasting. As a result, instead of the cheap electricity SHPPs produce, the Electrical Networks of Armenia gets relatively expensive electricity. The difference in money makes up 1 billion 253 million AMD, if to take into consideration the difference between the non-produced electricity and supplied electricity.

The expected damage in the marginal year (from August 1 to 31 July 2015) will make up 3 billion 680 million AMD. “These sums are recorded as damage in SHHP balance, which later the Committee has to include into the tariff and increased public burden. The public has to pay for each non-produced 1 kW/h of electricity in the form of tariffs. The impact of non-produced electricity on the tariff will be 0.66 AMD for one kW/h. All this is accumulated and then we get surprised how and why the tariffs get higher,” Minister Yervand Zakharyan said.

As of 1 October 2014, 162 SHPPs operate in the republic with around 277 mgW capacity. According to the issued licenses, another 65 SHPPs are in the construction process with projected capacity of 131 mgW. It should be mentioned that the main cause of reducing electricity production by SHPPs is the lack of water recorded in the republic.

The material was  developed in the frames of “Supporting reforms in the sector of small hydro power plants through enabling a dialogue between civil society  and the Ministry  of Nature Protection for sustainable use of river ecosystems” supported by UNDP/GEF Small Grants Programme".

November 12, 2014 at 14:23