The closure of Metsamor nuclear power plant: costs and benefits

Abstract

The Armenian Nuclear Power Plant (ANPP) is the only nuclear installation in Armenia as well as in the South Caucasus. It has become an inseparable part of the energy security of the country and the government tries to do its best in order to be able to make the operational life of the existing plant as long as possible until the construction of a new plant begins. However, both the European countries and neighboring states have expressed their concerns about its safety. Not only has the age of the plant become the reason for their worry, but also the fact that Metsamor NPP is the only plant in the world which restarted to operate after full shutdown. The main purpose of this study is to analyze the two possible scenarios of either closing the ANPP or allowing it to operate as long as possible. Each of the alternatives has its own possible consequences and costs. The main finding of this research is that a very low probability of raising financial resources for a new nuclear power plant is required in order to shift the choice from operating of Metsamor NPP to the construction of a new nuclear facility.