YEREVAN. – The  small hydroelectric power plant (HPP) market of Armenia cannot be liberalized all at once, non-pro-government Prosperous Armenia Party National Assembly (PAP NA) Faction member Mikayel Melkumyan said at a press conference on Monday.  

He noted that even though a relevant legislative amendment already has been submitted to the NA, the liberalization should be done gradually.

“As long as the business has not restored its investments, the small HPPs should not be brought into the market prices all at once. Otherwise, since there is [solely] one [electricity] distribution company [in Armenia], it may—or may not even—wish to purchase their electrical energy at a high price.

“A question will arise: In that case, how to make up for the [HPP] construction costs?” Melkumyan stated.  

In May, the Armenian parliament considered a bill on making amendments to the Law on Energy.

Numerous small HPPs in Armenia belong to large businessmen and MPs.