The next energy revolution is on our doorstep, and it is going to be driven by renewable power generation technologies, which potentially allow for a much more decentralized power system and a less heavy network. Still, power transmission network projects worth USD 40 trillion are being financed through different state and private investments all around the world. Mr. Michael Delphia, Senior Energy expert at USAID’s Governing for Growth Project discussed the concept of market-centered energy planning (M-CEP) with the ISET community at an open lecture. Throughout his career, Mr. Delphia has spent around 20 years in the US energy industry and has supported power and gas reforms in over 70 countries around the world.

Technological advancements in the energy sector pushed renewable energy (such as wind and solar power) to become more competitive than conventional sources of power. Moreover, the need of lower investments in transmission capacity due to the emergence of decentralized generation (with many customers producing electricity themselves) can be expected to lead to a further decrease in the cost of electricity. In turn, the availability of cheaper electricity can be expected to help making energy intensive industries more competitive. So far, the difficulty to add to the system cheap and effective reserve capacity to cope with the variability of renewable electricity sources, has been one of the main constraints to their development. However, given the existing trends and the impressive recent developments in energy storage technologies, this might cease to be a constraint relative soon, allowing the power system to function 24/7 on electricity generated 100% by renewable sources.

M-CEP is a new way to regulate power markets, based on continuous monitoring and incorporation in the planning process of the emerging market forces and trends. Mr. Delphia suggested that this approach should be adopted by the Georgian government when defining its strategy for the development of the future Georgian power systems.

The seminar was followed by a discussion during which Mr. Delphia answered questions regarding the Georgian power system and how M-CEP should be introduced. Mr. Delphia also shared his experience in heading several USAID projects in Georgia aimed at reforming the country’s power sector. Throughout his career, Mr. Delphia has spent around 20 years in the US energy industry and has supported power and gas reforms in over 70 countries around the world.