Georgia's electricity consumption slightly up

Oil&Gas Materials 29 December 2019 12:44 (UTC +04:00)
Georgia's electricity consumption slightly up

BAKU, Azerbaijan, December 29

By Tamilla Mammadova – Trend:

Consumption of electricity in Georgia increased by 1.6 percent year-on-year and reached 11.6 TWh from January through November 2019, Trend reports citing Georgian investment company Galt & Taggart.

The growth is far below expected, as well as below last years’ similar figures. The growth of electricity consumption in 2018 and 2017 was 6.7 percent and 8.6 percent, respectively. The slowdown in growth is explained by climate conditions.

"We expect annual growth of electricity consumption to be 1.8 percent in 2019," said the company.

Electricity consumption dynamics of certain consumer groups are explained by legislative changes. Consumption by eligible consumers (also known as direct consumers) increased by 61.3 percent year-on-years, while distribution licensees’ consumption was down 11.8 percent year-on-year in 11 months of 2019.

From the group of distribution licensees, Energo-pro Georgia’s consumption reduced the most (-16.3 percent year-on-year), as its several subscribers were registered as direct consumers.

Georgian Commercial Electricity System Operator (ESCO) was the main provider of energy to the direct consumers (42 percent in 11 months of 2019) due to the low balancing energy price in May and June 2019.

In 11 months of 2019, 10 new companies entered the wholesale energy market as power traders, from which only three were actively involved in trading (Tbilisi Investment Group, GIEC, Georgian Energy Trading Company).

Electricity sold by power traders accounted to 2.3 percent of total electricity trade.

Hydrogeneration was down by 9.2 percent year-on-year in 11 months of 2019 due to unfavorable hydrological conditions and accounted for 68.4 percent of total supply compared to 74.3 percent in 11 months of 2019.

Reduced hydro generation was compensated by increased thermal generation (+29.4 percent year-on-year) and imports (+10.5 percent year-on-year). In total, electricity from imported sources (both thermal generation and electricity imports) reached 3.8 TWh in 11 months of 2019, a 30.9 percent of total supply.

The guaranteed capacity fee averaged USc 0.54/kWh over 11 months of 2019 (-2.4 percent year-on-year). The reduction of the fee is explained by planned maintenance works on all thermal power plants during the summer months.


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