ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
28

Is There Need For a More Competitive Electricity Generation Market?

Why do we care about competitiveness in energy markets? And, what are the benefits of increased competition from the supply side of the electricity market? The main reason for the additional social surplus derives from increased energy consumption at lower prices. Increased competition in the electricity market is expected to translate into fewer market distortions – be they simply due to the abuse of market power or to the survival of inefficient firms – and, therefore, increased efficiency. Increasing the level of competitiveness in the electricity mar...
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Nov
30

Increasing Electricity Imports and Jumping Import Electricity Prices: a Worrisome Development or Data Glitch?

  After the generation deficit of September, the decreasing trend in generation continues, while the gap between consumption and generation keeps widening. Chiefly, compared to September, total electricity generation has decreased by 8% in October 2018, while in contrast with the previous October, 2017, electricity generation has decreased by 5%. This reduction in generation on a yearly basis is specifically due to the decrease in hydropower (-1%) and thermal power generation (-17%), which more than offsets the increase in WPP generation (+4%). Wher...
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Nov
20

Money Can’t Buy Happiness. Or Can It? A Case Study from Yerevan

I have been living away from Yerevan for four years. Over these years, every time I visited my city, I noticed more and more new (and fancy) cafes. Over time, I also noticed that café visits seemed to grow in numbers and I started wondering whether it was just my impression or the reality. I have been particularly puzzled by the paradoxical nature of the fact that people always complain about their wages and living standards, yet they do not mind spending money in cafés. Wouldn’t they be better off by saving money and use it to improve their long-term li...
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Guest — Hovakim
Good job Laura, thanks for an interesting study.
Tuesday, 20 November 2018 2:02 PM
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Nov
05

Is Russia Back as the Main Foreign Provider of Electricity to the Georgian Market?

After a generation deficit of August, Georgia continues to exhibit a decreasing trend in power generation; compared to August, total electricity generation has decreased by 14% in September 2018. Georgian power plants generated 849 mln. kWh of electricity, while consumption of electricity on the local market was 955 mln. kWh. It should be noted that compared to August, electricity consumption has decreased by 9%.Even though consumption decreased substantially during the month of September, Georgia had to import electricity from foreign power markets. Ove...
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Oct
01

Georgia Becomes a Net Importer of Electricity Even During the Summer Period

  In August 2018, Georgian power plants generated 985 mln. KWh of electricity (a 5% decrease in total generation, compared to the previous year and a 22% decrease with respect to July 2018), while consumption of electricity on the local market was 1,049 mln. kWh (+1% compared to August 2017, and -4% with respect to July 2018). Consumption to exceed generation by 64 mln, which is 6% of total consumption and 7% of the amount generated. As it can be seen in Figure 1, the emergence of a generation-consumption gap was not totally unexpected. Not only it...
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May
12

Is Abkhazia Consuming Too Much? – March 2018 Electricity Market Review

In March 2018, Georgian power plants generated 997 mln. KWh of electricity (+35% compared to March 2017, and + 7% compared to February 2018). Nearly a quarter (24 %) of this electricity was produced by the Enguri and Vardnili hydropower plants, which produced 188 mln. kWh and 49 mln. kWh, respectively. Consumption of electricity on the local market was 1,116 mln. kWh (+9% compared to March 2017, and +5% compared to February 2018). Around 19% of this electricity was consumed by Abkhazia (207 mln. kWh). The Enguri and Vardnili HPPs represent nearly the onl...
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