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ISET Economist Blog

A blog about economics in the South Caucasus.
Feb
28

Access to Electricity: Is Off-the-Grid an Option?

Assuring access to modern energy services for the whole population is a crucial step to improve human well-being and stimulate economic and social development. The International Energy Agency (IEA) has identified the lack of access to modern energy services as one of the main obstacles to overcome in order to achieve the UN Millennium Development Goals. In its 2011 World Energy Outlook, the IEA argued forcefully about the need to find and mobilize the resources required to extend access to modern energy services to the poor around the world. Transition c...
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Guest — Helene Ryding
Off the grid electricity (whether hydro or solar) has one drawback compared with on the grid electricity: there is no electricity... Read More
Saturday, 01 March 2014 12:12 AM
Guest — Irakli
So, with small subsidy there might a new business opportunity... and not temporary. The main point missing is the discussion of po... Read More
Tuesday, 04 March 2014 8:08 PM
Guest — Helene Ryding
In all my experience implementing change in post-socialist countries, I have never known a Ministry of Energy really take any inte... Read More
Thursday, 06 March 2014 7:07 PM
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Oct
11

Electricity Generation in Georgia II: Blowing Wind into the System

In the first part of our article we pointed out that electricity generation by hydropower is subject to strong seasonal variations. We argued that the seasonality of hydropower reduces the profitability of new plants, as they deliver the highest output in the time of the year when electricity is relatively cheap anyway, while they produce rather little when electricity is expensive. There are other problems why the potential of additional hydro power plants to solve Georgia’s energy problem are limited. Chart 4 shows a simple projection for 2020: The pro...
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Oct
04

Electricity Generation in Georgia I: The Seasonality Problem

In our two-part article we discuss how combining wind and hydropower can help the Republic of Georgia to achieve energy independence and become a net energy exporter. OVERVIEW Due to the geomorphological characteristics of its territory and to its geographical location, the Republic of Georgia is rich in hydro resources. According to the Georgian Ministry of Energy and Natural Resources, so far Georgia has been exploiting only about 20% of its hydro resource potential. Since 2006 the Georgian government has been planning to utilize these resources to not...
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Guest — blintu
Waiting for the second part
Friday, 04 October 2013 5:05 PM
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Sep
09

Tchiatura and the Resource Curse

Tchiatura is a small but resource rich and picturesque town, situated in the province of Imereti in Western Georgia. The abundance of an important natural resource, manganese ore, was the main reason for establishing the town in 1879. Akaki Tsereteli, the famous Georgian writer from the same region, initiated the manganese mining back then. To increase efficiency in transportation of the mineral, a railway was built in 1895. By this period, up to 6000 workers were employed in the Tchiatura mines and the extracted material made up about 50% of total world...
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Guest — RT
> The natural resources of Georgia belong to the Georgian people, and therefore the profits made by extracting these resources sho... Read More
Tuesday, 10 September 2013 1:01 PM
Guest — Danae Olsen
Mostly, I agree with RT. Although, it would be nice to see the people of Chiatura benefit more from this "black gold" industry tha... Read More
Friday, 04 October 2013 8:08 PM
Guest — Danae Olsen
Also, great job Giorgi for choosing to write about your hometown who live here.
Friday, 04 October 2013 8:08 PM
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Jun
14

Khudoni and Georgia’s Energy Policy Dilemma: Go Green or Go Greedy

Khudoni, Georgia’s largest hydropower investment project, is again making the headlines.  According to a recent statement by Georgia’s Minister of Energy and Natural Resources Kakha Kaladze, the project will be put on hold at least until March 1, 2014. To give readers a bit of context, Khudoni’s planned capacity is in excess of 700 MW; its annual generation potential stands at about 1,5 TW/h, dwarfing other hydropower projects currently under MoUs with international investors. If built, Khudoni would be the second largest HPP in Georgia after Enguri...
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Guest — Iñigo Arencibia
Having achieved the stable operation of the energy sector over the last decade, the time is ripe for the country to make a detaile... Read More
Saturday, 15 June 2013 11:11 AM
Guest — Irakli
Indeed, policy document is probably the most important document. Without having objectives it is difficult to decide what does cou... Read More
Monday, 17 June 2013 3:03 PM
Guest — blintu
Nice post! It is interesting, why they stick to only hydropower when there is need and possibility to diversify the sources of ene... Read More
Thursday, 27 June 2013 8:08 PM
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Apr
27

Georgia Going with the Wind?

The obsession of hydropower may have obscured other green energy options for Georgia. For one thing, investment in hydro is not happening as fast as could have been expected a few years ago. But, much more importantly, the bulk of hydropower would be in any case generated in the summer, when Georgia does not need as much of it. The surplus electricity is supposed to be exported to Turkey. But why destroy pristine landscapes and interfere with fragile ecosystems for the sake of exporting electricity to Turkey? Has anybody ever tried to answer the question...
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Guest — Simon Appleby
I worked on a capital raising in Indonesia some time ago on a pump-storage wind-hydro project, which enlightened me to the negativ... Read More
Sunday, 28 April 2013 7:07 PM
Guest — Eric
Simon, you get the most-substantive-and-fun-to-read-comment-of-the-year award!
Monday, 29 April 2013 8:08 AM
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