The list of electricity exporters in 2017 is largely defined. Net Transfer Capacity (NTC) for the “Meskheti” transmission line connecting Georgia and Turkey was announced for the year 2017. Maximum capacity of the line is 700MW, but according to the Interconnection Operation Agreement, parties might limit transfer capacities on an annual basis. For the main export months of 2017, NTC was set at 250MW in May, 300MW in June, and 700MW in July. The line was allocated to the group of companies with long term transmission rights (TDA owners) and to Eastern Power Corporation Ltd. The latter secured its allocation via special auction (gcat.com.ge). The line is only partially utilized, leaving room for transit companies and other exporters willing to export to Turkey.
Allowed export volumes for 2017 have been announced by Georgian State Electrosystem (GSE). Export allocations for the summer months were set as follows: May – 35.6GWh, 48MW; June – 126.7GWh, 176MW; and July – 114.6GWh, 154MW. These amounts can be exported to any neighboring country, subject to auction allocation. The auction revealed that 10.3% of annual export volume will be directed to Armenia, while the export market and exporter identity for 38.7% of annual export capacity remains undetermined, to be allocated via auction.
Domestic consumption increased 13.0% y/y in October 2016, with Tbilisi and the Abkhazian region driving the growth. DNO consumption was up 13.2% y/y, with the greater Tbilisi area (Telasi subscribers) posting an outsized 24.9% y/y growth rate. Usage of Energo-Pro subscribers was up 8.0% y/y, while Kakheti Energy Distribution usage was up 5.0% y/y. Consumption of eligible consumers was largely flat, down 0.2% y/y from an already very low base in October 2015 (-42.4% y/y). Georgian Manganese drove the trend in direct consumption, up only 5.7% y/y from the October 2015 low base (-47.4% y/y). Consumption of the Abkhazian region was up 20.8% y/y, following a 17.3% y/y increase in September 2016. Electricity exports were negligible. A significant amount of electricity transit (130.6 GWh) took place from Azerbaijan to Turkey.
Domestic consumption needs were met almost entirely by domestic generation in October 2016, with imports accounting for a mere 1.8% of total electricity supplied to the grid. Total generation was up 14.4% y/y, with regulated HPP generation increasing 25.3% y/y and accounting for 86.9% of total hydro generation. Generation by Enguri and Vardnili was up 44.8% y/y, while generation by deregulated HPPs increased 1.7% y/y. TPP generation was roughly flat (-0.6% y/y). Guaranteed capacity was provided by each of the five guaranteed capacity sources for the entire month. The GC fee almost quadrupled (3.9x), to USc 0.92/kWh, compared to October 2015 and was up 8.3% m/m. Electricity imports in October 2016 were down 71.0% y/y, with Azerbaijan the sole source of imports.
Wholesale market prices in Georgia decreased 10.1% y/y to USc 4.7/kWh, 1.5% below the Turkish market clearing price in October 2016. Turkish electricity prices decreased 1.8% y/y to USc 4.7/kWh from a significantly low base in October 2015 (-31.3% y/y). 6.3% of total electricity supplied to the grid was traded through the market operator, with the rest traded through bilateral contracts.
