Domestic consumption increased 8.1% y/y in August 2016, with DNOs being the major growth drivers. DNO consumption increased 7.2% y/y, with the greater Tbilisi area (Telasi subscribers) posting an outsized 22.3% y/y growth rate. Usage of Energo-Pro subscribers was flat (+0.3% y/y), while Kakheti Energy Distribution usage was up 6.4% y/y. Consumption of eligible consumers was up 11.3% y/y, albeit from a very low base in August 2015 (-53.6% y/y). Consumption of Georgian Manganese drove the growth, with consumption up 25.3% y/y. Notably, GM’s consumption is still 41.9% lower than the August 2014 level. Consumption of the Abkhazian region was up 12.9% y/y. Electricity exports increased 13.3% y/y in August 2016, with Turkey the only importer. According to the data from GCAT (GSE capacity auction), the entire export capacity was allocated to Georgia Urban Energy (Paravani HPP). In addition to exports, a significant amount of electricity transit (138.7 GWh) took place from Azerbaijan to Turkey. Transit fees go to GSE, the transmission system operator.
Domestic consumption needs were met almost entirely by domestic hydrogeneration in August 2016. Total generation was up 11.0% y/y, with generation by Enguri and Vardnili up 16.3% y/y and other regulated HPPs up 19.9% y/y. Generation by deregulated HPPs increased 5.6% y/y. TPP generation in July 2016 was down 33.9% y/y, as hydrogeneration was enough to meet the increased demand in the grid. 76.0% of TPP-generated electricity was provided by Gardabani CCPP (USc 2.8/kWh) and the rest by G-Power (USc 3.7/kWh). Gardabani CCPP also provided guaranteed capacity for all of August (31 days), along with Unit 3 (31 days) and Unit 4 (2 days). Unit 9 and G-Power, on the other hand, had no stand-by days in August. The guaranteed capacity fee increased 361.3% y/y to USc 0.71/kWh.
Market clearing prices in Turkey were flat compared to August 2015, competitively priced against Georgian wholesale market prices. The weighted average wholesale price in Georgia was at USc 4.3/kWh (-26.7% y/y), while the Turkish market clearing price was at USc 5.7/kWh. 3.2% of total electricity supplied to the grid was traded through the market operator, with the rest was traded through bilateral contracts. Import prices decreased 18.2% y/y to USc 5.2/kWh, with 100% of imports (10.5 GWh) coming from Azerbaijan.
