The completion of a 270-kilometer, 400 kV power transmission line between Iran and Armenia, stretching through Armenia’s mountainous and forested terrain is the longest transmission line in the country and is expected to facilitate a more efficient and stable exchange of electricity between Iran and Armenia.
The near completion of this transmission project is a significant milestone in the energy partnership between the two countries. As of now, the project is reported to be 90% complete.
This achievement is not just a testament to engineering prowess but also a significant step forward in regional energy integration and cooperation.
The project is being executed by the Iranian engineering company Sunir and has received substantial financial backing to ensure its timely completion.
In recent developments, the Armenian government approved a budget loan of 2.07 billion drams (USD 5.2 million) to accelerate the construction process.
Once completed, the transmission line is set to enhance the electricity transmission capacity between Iran and Armenia from 350 MW to 1,200 MW.
This increase aims to strengthen Armenia’s energy security and is expected to play a critical role in the North-South Energy Corridor, which aims to connect the power grids of Iran, Armenia, Georgia, and Russia.
Iran and Armenia have a longstanding energy relationship, primarily based on a barter system that exchanges Iranian gas for Armenian electricity.
In November 2022, both countries extended this agreement until 2030, with plans to double Iran’s gas exports to Armenia from one million to two million cubic meters daily.
The completion of the transmission line aligns with these goals, further cementing their energy partnership and boosting trade and economic cooperation.
The groundwork for this collaboration was laid through a memorandum of understanding signed in Tehran on July 2019 by Iranian Energy Minister Reza Ardakanian and Armenian Deputy Prime Minister Mher Grigoryan.
Commenting on the MoU, DPM Minister Mher Grigoryan says that “the completion of this transmission line marks a significant step in strengthening our energy partnership and advancing regional energy integration.”
The MOU aims to expand economic ties, focusing on energy cooperation, infrastructure development, and transportation.
Notably, the agreement is alleged to also include commitments to increase Iran’s electricity exports to Armenia beyond 1,000 MW.
It also addressed areas such as road and railway transportation, customs, and the establishment of free trade zones, showcasing the multifaceted nature of their cooperation.
This energy initiative reflects broader regional aspirations. The transmission line is pivotal in linking the energy systems of Iran and Russia via Armenia and Georgia, a vision championed by Armenia’s Deputy Minister of Territorial Administration and Infrastructure, Hakob Vardanyan.
Deputy PM Vardanyan has highlighted the project’s importance in fostering energy security and regional integration. He has been actively overseeing the construction, ensuring the project’s alignment with Armenia’s strategic goals.
The nearing completion of the 400 kV transmission line underscores the growing importance of energy diplomacy in fostering regional connectivity and economic growth.
By enabling better energy exchange and creating stronger ties between neighbouring countries, this project may represent a win-win scenario for Iran, Armenia, and the broader region.
