The project aims at improving power system operational efficiency and power supply reliability in Armenia. The project comprises two main components: (i) expansion of supervisory control and data acquisition (SCADA) system; and (ii) rehabilitation of eight existing substations.
Armenia has limited fossil fuel resources as well as renewable resources such as water. The total installed generation capacity by the end of 2011 is 3,900 megawatt (MW). Power generation in 2011 comprises of 34% nuclear, 34% hydropower and 32% thermal power (using imported natural gas). Since the late 1990s, the power sector of Armenia has achieved remarkable results through reforms and restructuring. The distribution network and a large share of generation assets were privatized. There is a competent regulatory agency for the sector - Public Services Regulatory Commission. The country's energy sector is governed by the Energy Law (2001) and the Law on Energy Saving and Renewable Energy of the Republic of Armenia (2004).
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