Armenia to start building power line to Georgia in 2027; budget earmarks 69.8 billion drams

Armenia will start building the new high-voltage transmission line to Georgia in 2027, Minister of Territorial Administration and Infrastructure Davit Khudatyan said on 9 November during the parliamentary debate on the draft 2027 state budget, according to the PanARMENIAN agency.

The figures. The government proposes 69.8 billion drams (about $190 million) for the project next year, funded by a loan from Germany's development bank KfW. Secured financing totals €323.75 million, against an estimated total cost of €542.75 million. Work has already begun on the sections running from Ddmashen and Ayrum towards the Georgian border; India's KEC International holds a contract worth about €70 million.

Why the delay. According to PanARMENIAN, the project was held up for years by difficulties in choosing the substation site and procuring equipment: the two countries' power systems operate asynchronously, which requires specialised equipment. Together with the 400 kV Iran–Armenia line under construction, the new link is expected to form an Iran–Armenia–Georgia electricity corridor.

Tariffs. Asked by an opposition MP whether electricity prices could rise after the tariff review scheduled for December by the Public Services Regulatory Commission, Khudatyan said that neither the line to Georgia nor the life extension of the Armenian nuclear plant's second unit, for which 14.8 billion drams are allocated, would affect tariffs. The minister did not address other factors that could change prices.

What next. Also on 9 November, Khudatyan told journalists, as quoted by News.am, that the nuclear plant will operate at least until 2035 and that Armenia is reviewing several offers for a new plant, including small modular reactors, with differences between them of "several billion dollars". "The decision will not be political but economic," the minister said.