Baku, Azerbaijan, October 4
By Tamilla Mammadova – Trend:
Energy sector was the largest foreign direct investment (FDI) recipient in 1H2019 in Georgia, attracting almost a quarter of total, Trend reports referring to the research of investment company Galt & Taggart.
FDI in energy sector increased by 32 percent year-on-year to $112 million in 1H2019. FDI flows were mostly directed to Nenskra HPP, Achar Energy-2007 and Energo-pro Georgia projects.
Domestic consumption of electricity increased by 2.3 percent year-on-year and reached 8.6 TWh in January-August 2019. The growth is far below expected, as well as last years’ similar figures. The growth of electricity consumption over the same period in 2018 and 2017 was 7.7 percent and 8.2 percent, respectively.
According to revised annual balance of electricity, Ministry of Economy and Sustainable Development reduced annual electricity consumption forecast in 2019 to 13.3 TWh, which is 5.7 percent growth down from initially projected 13.2 percent. The slowdown in growth is explained by climate conditions and decreased demand from the crypto-currency miners.
Electricity consumption dynamics of certain consumer groups are explained by legislative changes. Consumption by eligible consumers (also known as direct consumers) increased by 61.4 percent year-on-year, while distribution licensees’ consumption was down 10.5 percent year-on-year in January-August 2019.
From the group of distribution licensees Energo-pro Georgia’s consumption reduced most (-14.3 percent year-on-year), as its several subscribers were registered as direct consumers.