Galt & Taggart (G&T) published a report on Electricity Market Watch for 1Q25. According to the document, 3.8 TWh of electricity was supplied to the grid in 1Q25, out of which 2.8 TWh was local generation, and 1.0 TWh were imports. Local generation decreased by 15.6% y/y while imports more than doubled (+122.2% y/y). Local generation decreased both for hydro and thermal power plants. Additionally, the choice between a thermal power plant and imports was made on the basis of price. The 54.1 MW Mtkvari HPP and 14.2 MW Chiora HPP were commissioned in testing regime in 1Q25.
Domestic electricity consumption was up by 1.3% y/y to 3.7 TWh in 1Q25. The growth was driven by growth of residential (+8.5% y/y) users, eligible consumers (+1.3% y/y) and commercial users of retail companies (+4.4% y/y).
Electricity price: wholesale price of electricity in Georgia increased by 1.5% y/y to USc 5.9 /kWh in 1Q25. The Ministry of Economy has received 435 applications from those wishing to receive CFD contracts through direct negotiations, with a total installed capacity of 11.2 GW, of which 0.75 MW is hydro, 4.2 GW is wind, and 6.2 GW is solar power plants. The results of the application review will be announced in a few months.
Net metering regulation reached its limits for Energo-pro Georgia’s grid and was suspended until planned regulatory changes are implemented. However, Telasi continues to accept applications for the remaining 50-60MW capacity.
GNERC increased tariffs for Enguri, Vardnili and Georgian State Electrosystem to 4.021 (+66.7% y/y), 5.111 (+66.7% y/y) and 3.298 (+17.2% y/y) tetri per kWh, respectively, staring form Jan-25. Local electricity generation decreased by 15.6% y/y and amounted to 2.8 TWh in 1Q25.
Hydro generation decreased by 14.8% y/y to 1.8 TWh and accounted for 65.0% of total generation. Notably, the decrease in hydro generation is related to the high base of the previous year, which in turn was related to hydrological conditions.
Despite the overall decline in hydro generation, generation from deregulated HPPs increased by 4.5% y/y, driven by new plants.
Thermal power plants generation decreased by 17.1% y/y in 1Q25, while electricity imports doubled (+122.2% y/y). The choice between a thermal power plant and imports was made on the basis of price. The average generation price of Tbilsres and Mtkvari Energy thermal power plants fluctuated between 6.3-6.7 USc/kWh in 1Q25, while the average import price from Azerbaijan and Armenia was 5.9 and 6.6 USc/kWh, respectively.
Notably, prices for thermal power plants have increased since January 2024 due to the increase in the purchase price of gas (the price per m3 rose from $143 to $210).
The average selling price of balancing electricity increased by 1.5% y/y to USc 5.9/kWh. The price of balancing electricity fluctuated within the range of 5.8-6.0 USc/kWh on a monthly basis. The volume of balancing electricity increased by 23.8% y/y to 1.4 TWh and accounted for 37.1% of total supply. The increase in volume was driven by increased imports and generation from HPPs with PPAs.
