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Gas market concept under discussion in Georgia

Oil&Gas Materials 27 November 2020 11:50 (UTC +04:00)
Gas market concept under discussion in Georgia

BAKU, Azerbaijan, Nov. 27

By Tamilla Mammadova – Trend:

The adoption of the Law on Energy and Water Supply in Georgia compliant with the Third Energy Package at the end of 2019 paved the way for the liberalization of the electricity and gas markets in the country, Trend reports via Energy Community Secretariat's annual implementation report

As reported, the Law provides the legal basis for unbundling of the transmission and the distribution systems in both sectors, as well as for market opening at both wholesale and retail level.

"Georgia started to adopt secondary legislation in line with the set timetable. Adoption of an electricity market model concept in April 2020 and the electricity market rules, which will enter into force on July 1, 2021, provides a framework for the gradual opening of the wholesale and retail markets. Day-ahead and balancing markets, which are to be launched on July 1, 2021, are in the testing phase," the report said.

As reported, the gas market concept is still under discussion.

"Georgia continues not to have emergency oil stocks and no progress during the reporting period has taken place. As regards climate and environment, Georgia, unlike other Contracting Parties, is not subject to a binding renewable energy target for 2020. A renewable energy law was adopted together with the Law on Energy at the end of 2019," the report said.

An energy efficiency law is currently pending in Parliament. In the area of environment, Georgia has not yet transposed the Energy Community rules related to emissions into the air, despite operating four large combustion plants. Work on the National Energy and Climate Plan is underway and draft chapters of the plan have been
submitted to the Secretariat for an informal review.

According to the report, Georgia is the only Contracting Party that is not (yet) directly interconnected with other Parties. Its power sector is mainly based on hydropower. The system is synchronized with Azerbaijan and Russia. Depending on the season, electricity is either exported or imported from its neighbors, including Turkey. The country hosts important gas and oil pipelines for the Southern Corridor. It is dependent on gas imports from Azerbaijan and Russia. In terms of solar and wind energy, the country’s potential is yet to be tapped. Georgia also plans to further increase its hydropower capacities.

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