Electricity trade deficit widened to US$ 70.5mn in 2019. In 2019, electricity consumption increased by 1.4%, while hydro generation was down by 10.1% due to unfavourable hydrological conditions. Under reduced hydro generation, local demand on electricity was met by increased imports (+7.8% y/y) and thermal generation (+ 34.3% y/y), additionally the exports were down by 58.8% y/y. In overall, cost of imported electricity amounted to US$ 78.3mn (+ 3.4% y/y), while export revenue was mere US$ 7.8mn. Consequently, the electricity trade deficit widened by 24.5% y/y and reached a historic maximum of US$ 70.5mn.
Electricity consumption in Georgia is expected to grow by 5.0% in 2020. Ministry of Economy and Sustainable Development approved annual forecasted balance of electricity on December 28, 2019. According to the forecasted annual balance, 72.6% of total demand on electricity in 2020 will be met by hydro generation, 18.2% by thermal power plants, 0.6% by wind generation and 8.6% by imports. The forecast defined May, June, July and August as potential export months of 2020.
In 2019 and beginning of 2020, 9 hydro power plants were commissioned, with a total capacity of 72 MW. The largest of them were Mestiachala 1&2 (50MW in total) and the rest were small HPPs with average capacity of 3.5MW. Additionally, 230MW Gardabani-2 thermal power plant was put into operation by end of 2019.
GNERC made significant tariff modifications for TPPs, Enguri, Vardnili and Georgian State Electrosystem by end of 2019. These changes will also affect the balancing market prices. Moreover, GNERC approved natural gas tariff for residential users.
