Electricity consumption in Georgia reduced by 10.1% y/y in 1H23, after a decade of unprecedented growth (excluding year of Covid-19), reads the latest publication of Galt & Taggart on Georgia's Energy Sector - Electricity Market Watch | 1H23.
According to the authors of the report, this decrease was mainly driven by reduced consumption in the Abkhazian region and direct consumers such as data mining and metallurgical companies. The decline started in 2H22 and is expected to continue over the course of 2023.
"Electricity import volume and price were unexpectedly low. The sole consumer of such electricity was Abkhazian region, receiving electricity from Russia at special price (USc 0.1/kWh). The rest of Georgia replaced commercial imports with comparatively cheap thermal generation, enabled by the availability of social gas, making thermal generation in Georgia cost-effective compared to global standards.
Georgia became net exporter of electricity in 1H23. Increased prices in Turkey surged demand for electricity exports and therefore export revenues. The changes in supply and demand made the 21.4% y/y growth in export volume possible. Although export price dropped by 19.6% y/y, export revenues were still high at US$ 53.3mn (-2.4% y/y). As electricity imports were insignificant in value, net export was close to total export value and stood at US$ 51.6mn, which is 2.7x times above the last year’s figure," the report says.
