Domestic electricity consumption was up 3.8% y/y in May 2016. The Abkhazian region’s consumption remains subdued, with only 1.0% y/y growth in May 2016, albeit from the high base of May 2015 (+31.5% y/y). Excluding the Abkhazian region, Georgia’s domestic consumption grew 6.2% y/y, with growth concentrated on the greater Tbilisi area (+11.6% y/y). Consumption by Energo-Pro subscribers was up 3.6% y/y and Kakheti Energy Distribution (KED) subscriber usage was up 1.4% y/y. Consumption by Georgian Manganese, largest eligible consumer, was flat in May 2016, making up 12.5% of domestic consumption. Electricity exports in May 2016 were up 32.0% y/y to 189.9 gWh, with 43.0% of exports (81.7 gWh) going to Russia, 32.1% (61.0 gWh) to Turkey, and 23.8% (45.2 gWh) to Armenia. The average export price of Georgian electricity was USc 3.3/kWh, still competitive in comparison with Turkey’s market price of USc 4.2/kWh.
Domestic consumption needs were fully met by domestic hydrogeneration in May 2016. Electricity generation by Enguri and Vardnili made up 50% of total consumption. Imports were negligible. Generation by deregulated HPPs increased 4.9% y/y, while regulated seasonal HPP (except Enguri and Vardnili) generation was up 7.9% y/y. The system used no TPP-generated electricity in May 2016; however, the guaranteed capacity sources remained on standby mode, with the exception of Gardabani CCPP (20/31 days on standby) and GIG Unit 3 (0/31 days on standby). As Gardabani CCPP was not on standby for the full month, the GC fee decreased to GEL 0.012/kWh from GEL 0.020/kWh or higher in the previous months of 2016.
The weighted average market clearing price in Turkey was flat y/y in US$ terms, but increased 10.5% y/y in TRY terms. In Georgia, the balancing electricity price increased 37.9% y/y to USc 4.7/kWh. However, the wholesale price of electricity in May is not representative of the market, as a mere 1.7% of total electricity supplied to the grid was traded through the market operator. The rest of the trade occurred through bilateral contracts.
