On November 8, 2012, Professor Einar Hope, from the Norwegian School of Economics (NHH), delivered a public seminar for ISETers, representatives of the Georgian energy sector, and international organizations working in the field.
The seminar’s main focus was on the issue of the optimal composition of the electricity system and its regulation. In particular, it addressed the issues of optimal pricing, sustainability, and the security of the supply side of the sector.
Professor Hope provided a comprehensive description of the Norwegian electricity system and explained how it interacts with the wider Scandinavian system. He explained the economic importance of alternative energy sources, like wind and hydro energy, and provided a snapshot of the current situation and future prospects for the EU to replace traditional exhaustible energy sources with renewable ones.
The most important part of the seminar addressed some of the lessons learned in the Norwegian energy market. These hold relevance for Georgia as both countries are similarly endowed with natural potential for hydro energy generation. Professor Hope explained the importance of economies of scale in the energy generation sector and talked about Georgia’s potential as a hydro-powered country, drawing some parallels with Norway which uses nearly 100% hydro power-generated electricity. The seminar also discussed the advantages and disadvantages of switching to a hydropower electricity system from the perspectives of sustainability and security.
Various investment and pricing options were also assessed and the importance of such factors as taking advantage of economies of scale and the need for simultaneous investment into energy generation and distribution facilities were stated. These factors would guarantee that the Georgian electricity system gets developed and harmonized with the regional system.
The school would like to thank Professor Einar Hope for presenting such a comprehensive and useful set of policy recommendations and suggestions for electricity system optimization.