Domestic consumption increased 4.3% y/y in September 2016, with Tbilisi and the Abkhazian region driving the growth. DNO consumption was up 4.5% y/y, with the greater Tbilisi area (Telasi subscribers) posting a 16.8% y/y growth rate. Usage of Energo-Pro subscribers was down 1.3% y/y, while Kakheti Energy Distribution usage was up 2.0% y/y. Consumption of eligible consumers was the main drag on growth, down 12.9% y/y from an already very low base in September 2015 (-38.1% y/y). Georgian Manganese drove the decline in direct consumption, down 10.8% y/y from the September 2015 low base (-45.3% y/y). Consumption of the Abkhazian region was up 17.3% y/y, following a 12.9% y/y increase in August 2016. Electricity exports were negligible. A significant amount of electricity transit (101.5 GWh) took place from Azerbaijan to Turkey.
Domestic consumption needs were met almost entirely by domestic generation in September 2016, with imports accounting for a mere 3.0% of total electricity supplied to the grid. Total generation was up 2.9% y/y, with regulated HPP generation increasing 28.1% y/y and accounting for 88.4% of total hydrogeneration. Generation by Enguri and Vardnili was up 34.4% y/y, while generation by deregulated HPPs increased 10.2% y/y. TPP generation in September 2016 was down 40.6% y/y. Guaranteed capacity was provided by each of the five guaranteed capacity sources for the entire month, with the exception of G-Power (11 days on stand-by) and Gardabani CCPP (26 days on stand-by). The GC fee almost quadrupled (3.6x), to USc 0.84/kWh, compared to September 2015, and was up 19.3% m/m. Electricity imports in September 2016 were down 46.8% y/y, with Azerbaijan the sole source of imports.
Wholesale market prices in Georgia decreased 23.3% y/y to USc 4.4/kWh, 10.2% below the Turkish market clearing price in September 2016. Notably, Turkish electricity prices decreased 11.7% y/y to USc 4.9/kWh from a significantly low base in September 2015 (-26.8 y/y). 11.9% of total electricity supplied to the grid was traded through the market operator, with the rest traded through bilateral contracts.
