FDI in energy sector increased 61.0% y/y to US$ 188.6mn in 2017. The largest FDI providers were: Energo-pro Georgia and related companies – Energo-pro Generation and G-Power; Adjaristskali Georgia – investor of Shuakhevi HPP, Mtkvari Holding and Nenskra Hydro – investors of Mtkvari HPP and Nenskra HPP, respectively.
Domestic electricity consumption increased 4.6% y/y to 1.1TWh, slightly below the planned level (-2.5%). The sole contributors to consumption growth were distribution licensees: 1) Energo-Pro Georgia subscribers’ consumption increased by 16.3% y/y. The growth can be explained by addition of new subscribers; 2) Telasi consumption was up 2.3% y/y, albeit from a high base in February 2017 (+8.3% y/y).
Electricity generated by domestic sources increased by 15.4% y/y to 0.9TWh in February 2018, slightly above (+3.5%) the planned level. Hydro generation showed significant increase (+64.3%y/y) in February 2018 from a very low base (-33.1%y/y) in February 2017. Enguri/Vardnili generation more than doubled increasing 119.6% y/y from last year’s low base when Enguri was stopped due to tunnel expertise. Abkhazian region consumed 94.8% of electricity generated from Enguri/Vardnili. Generation of other regulated and deregulated HPPs also increased significantly by 40.2% y/y and 44.6% y/y, respectively, due to high water flow and addition of new HPPs (Dariali and Khelvachauri) to the group of deregulated HPPs. The surplus in hydro generation resulted in 24.4% y/y decline in thermal generation, about 16.6% below the planned level. Wind generation showed 7.0% increase to 6.2GWh and contributed 0.6% of total supply.
Electricity imports were down by 32.8% y/y from last year’s high base, when interruption in Enguri increased demand for imports drastically. Import came fully from Azerbaijan and accounted for 15.2% of total electricity supplied to the grid. Average import price increased by 52.2% y/y and reached USc 5.3/kWh, from last year’s low base (-22.6% y/y). In February 2017, there was a subsidized electricity import from Russia via Salkhino line to satisfy the excess needs of Abkhazian region.
