Strategy

The strategic line of the company focuses on increase of produced energy volumes at the expense of creating a new productive capacity and reduction of specific consumption of water used for units of electricity.
In 2010 the company has generated electricity capacity of 177, 64 million kWh, which exceeded the projected volume for 2010 by 10.2 %. As a matter of fact, the company has met the NKR demand for electricity by 76,3%.  Presently, electricity production of the company is carried out by Sarsang and Trghe-1 hydro power plants.
The company’s main asset is the Sarsang HPP, built in 1976 on the main river of NKR, Tartar River. The HPP is considered to be one of the best and the most equipped HPPs of former USSR.
The Sarsang HPP is located on Sarsang reservoir. The latter has 500 million cubic meters of productive capacity. The height and the width of the dam are 730 m and 550m respectively, which is considered to be one of the highest dams even in the range of European countries.
In April, 2010 the Trghe-1 HPP was put into operation. The company is now makes large investments into the construction of 3 HPPs: Mataghis-1, Mataghis -2, Trghe-2.
In the frames of «NKR water appropriation»project it is planned to complete the construction works in the HPP in 2011.
The construction cost of Trghe-1 is about 832.5 million AMD, which was carried out by own funds received from the first distribution of shares.

The initial cost of construction works and their writ of execution

Indicators   Trghe-2 Mataghis -1 Mataghis-2 Total
Project initial cost, million, AMD 2000 3300* 2100 7400
Project writ of execution, million, AMD 1,477.6 2822 1801.7 6101.3

Source:  “ARTHAKH HEK” OJSC
* The cost includes also the expenses on employee’s accommodation and construction of cafeteria

   The construction project of the new HPP is completed by 82,45% as of 31.12.2010.
Below are presented the technical indicators of Trghe 1, Trghe 2, Mataghis 1 and Mataghis 2 HPPs.

Technical indicators of HPPs.

Characteristics Unit  Trghe -1  Trghe- 2 Mataghis -1 Mataghis -2
Installed capacity MW 3 5.9 4.8 3
Average annual electricity output mln, kWh 16.5 24.82 22.4 13.2
Pressure on facilities m 210 355.5 19.5 11.7
Total culvert capacity m3/s 2 2 30 30
Annual runoff mln m3 33.76 28.54 632.4 632.4
Number of hydroelectric generators units 3 2 3 3
Diversion pipeline length km 5 5 0.24 0.03
Diversion pipeline diameter Unit/m 1/1220 1/1220 3*1600/3*2520 3*2520

Source: “ARTHAKH HEK” OJSC

The design and evaluation works of the above-mentioned project are carried by “ArmHydroEnergyProject”CJSC. By initial assessment, the construction works of Trghe -3 will be initiated in the second quarter of 2011, and the HPP will be put into operation in the second quarter of 2012.

Artsakh HEK OJSC Installed Capacity 71.7 MW
Sarsang HPP50 MWTrghi-1 HPP3 MWTrghi-2 HPP5.9 MWTrghi-3 HPP5 MWMataghis-1 HPP4.8 MWMataghis-2 HPP3 MW
Production of Artsakh HEK OJSC
2011104.2 million kW-h2012133.2 million kW-h2013142.6 million kW-h2014166.4 million kW-h2015140.3 million kW-h2016191.8 million kW-h