On Monday, May 11th, Professor of Norwegian School of Economics (NHH) Dr. Mette Helene Bjørndal gave a public lecture at ISET conference hall. Prof. Bjørndal held the presentation titled “Insights into the Nordic Energy Market”. The main aspects of the presentation were to review the structure, main characteristics of the Nordic power market, and peculiarities of its integration into other European electricity markets.

The purpose of this event was to discuss the role of energy and water supply sectors for job creation and poverty reduction, as well as suggest improvements to existing policies affecting access to, and efficient use of, scarce resources. Georgia, just like other countries of the South Caucasus region, is characterized with significant energy poverty.

After a dip in April, the GDP growth rate seems to be back on track, the year-on-year growth rate in July was 7.2%. Higher rates of electricity consumption and an increase in the change of VAT payers’ turnover corroborate this evidence. In July electricity consumption and VAT payers’ turnover were 3.8 and 15.4 percent higher compared to the same month in the previous year.

After a few months of strong GDP growth (November 2013-March 2014) a sharp decline in growth rate to only 2.7% (y-o-y) comes as an unwelcome surprise. According to the national statistics office, the VAT payers’ turnover is down and electricity demand has declined compared to April of last year.

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.