ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
28

Enguri HPP Is Closing While Demand on Abkhazia’s Side Keeps Growing: Challenges and Opportunities for The Georgia’s Electricity Sector at the Beginning Of 2021

According to the last four years’ data, Georgia has a chronic electricity deficit in ten months out of twelve, with the country showing an electricity surplus only in May and June (and, occasionally, in April and/or July). Despite the COVID-19 crisis dampening electricity demand in the country, 2020 was no exception. After two months - May and June - characterized by a positive generation-consumption gap, starting from July 2020 Georgia has been generating less electricity than required to cover consumption. To fill this deficit, Georgia imported energy ...
Rate this blog entry:
Continue reading
574
0 Comments
Write a Comment
Oct
05

COVID-19 Strikes Again: How the Pandemic is Affecting Georgia’s Energy Security

  Many of us well-remember the cold winter of 2006 when the Russian Federation cut its natural gas supply to Georgia. In general, it is clear that diversification in energy import markets reduces the risk of socio-economic shocks following political tensions with other countries. Fortunately, Georgia managed to find an alternative to the Russian supply and started importing gas from Azerbaijan. This blog will review the current gas import situation and discuss the expected trends in natural gas supply security. As Yergin (2006) notes, the primary fa...
Rate this blog entry:
Continue reading
328
0 Comments
Write a Comment
Jun
19

Seasonal Effects and COVID Lockdown Combined Close the Generation-Consumption Gap in April

THE GAP CLOSES In April 2020, total generation and consumption nearly balanced (944 mln kWh of generation and 941 mln kWh of consumption), with power generation exceeding consumption by only 3 mln. kWh (corresponding to 0.3% of total generation: Figure 1). This occurred due to the simultaneous decrease in total consumption (7%) and total generation (2%). Interestingly, over the same period, wind power generation increased by a remarkable 23% compared to April 2019. One year before, in April 2019, the difference between total generation and consumption ha...
Rate this blog entry:
Continue reading
467
0 Comments
Write a Comment
May
01

The Implications of COVID-19 on the Georgian Power Market

The consequences of COVID-19 on tourism and in the industrial and service sectors have been discussed broadly recently. However, little has been said about the current and future implications on the Georgian power sector. The worldwide pandemic has already had, and is still expected to have, quite significant implications on both the demand and supply sides of the electricity market. Although, at this stage, we cannot estimate the exact scale of the effects, it is possible to represent a general theoretical framework of the existing and potential impacts...
Rate this blog entry:
Continue reading
766
0 Comments
Write a Comment
Apr
03

The Generation-Consumption Gap Keeps Increasing. What Could or Should Be Done About It?

Looking at the consumption and generation trends of the past year, it is evident that Georgia is an electricity importing country during most months, with consumption almost always exceeding domestic generation. The only exceptions over the last 12 months were May and June, when the generation-consumption gap briefly became positive, reverting to the negative again in July. This is quite a dramatic change from how the country’s generation-consumption gap looked back in 2010, when the country exported almost seven times more electricity (1524.3 GWh) than ...
Rate this blog entry:
Continue reading
425
0 Comments
Write a Comment
Nov
08

Georgian Energy Security: Reflecting on the September Power Market Data

After facing a generation deficit during the month of August, Georgia continued to experience a decrease in power generation. In September 2019, generation decreased by 3% compared to September 2018 and by 19% compared to August 2019. Georgian power plants generated 821 mln kWh of electricity while consumption of electricity in the local market was 972 mln kWh. Compared to August, electricity consumption decreased by 12%. Even though consumption decreased substantially during the month of September (at least partially due to lower demand for air conditio...
Rate this blog entry:
Continue reading
748
0 Comments
Write a Comment