Direct consumption was up 6.4% y/y in June 2016, after Georgian Manganese (GM) resumed mining operations in May. The full effect was seen in the June figures, with GM’s consumption up 14.3% y/y. Total domestic usage was up 7.3% y/y, with DNO consumption (+6.3% y/y) a major driver. Growth was concentrated on the greater Tbilisi area (+13.4% y/y). Usage of Energo-Pro subscribers was up 3.4% y/y. Exports were up 14.6% y/y in June with Turkey being the major demand driver. 50.2% of exports were directed to Turkey (+23.1% y/y), 29.2% to Russia (-5.6% y/y) and the rest to Armenia (+32.4% y/y). Consumption of the Abkhazian region was up 14.8% y/y, after three consecutive months of flat or negative growth figures.
Domestic consumption needs were fully met by domestic hydrogeneration in June 2016. Total generation was up 8.7% y/y. The main contributor to the growth was Enguri and Vardnili generation, which reached a six-year high. TPP generation in June 2016 was negligible, but the TPPs remained on stand-by to support system capacity. Notably, Gardabani CCPP was on stand-by for only eight days, leading to a 57.4% m/m decline in the guaranteed capacity fee. Electricity imports in June 2016 were negligible.
The market clearing price in Turkey was up 11.0% y/y in US$ terms in June 2016. Turkish electricity prices have posted increases on an annual basis for three consecutive months, albeit from very low bases. Wholesale prices are on the rise in Georgia as well – the June 2016 price for balancing electricity was USc 4.9/kWh, up 37.0% y/y. A mere 2.3% of total electricity supplied to the grid was traded through the market operator. The rest of the trade occurred through bilateral contracts. The average export price of Georgian electricity was USc 3.9/kWh, with over half of the exports going to Turkey.
