Energy market liberalization is a relatively long-term process, according to Davit Narmania, Chair of the Georgian National Energy and Water Supply Regulatory Commission (GNERC). Speaking to BMG about the opening of the Energy Exchange’s day-ahead market, Narmania said the process would be more effective once additional generation capacity is available in Georgia.
“The technical system is ready. It is important to conduct additional simulations before opening the market to ensure that electricity prices do not increase. Market opening will be more effective when more generation emerges in the country, meaning when we have more surplus energy. In that case, when supply exceeds demand, prices will decline,” Narmania said.
The Energy Exchange began operating under a transitional electricity market model on July 1, 2024, as a first step toward liberalizing the electricity market and aligning Georgia’s system with EU requirements. However, the government has decided to suspend day-ahead trading on the exchange from October 1, with operations scheduled to resume under the exchange operator from July 1, 2027.
Irakli Galdava, Head of the Georgian Energy Exchange, said day-ahead market operations are being suspended due to very low demand, with only one transaction concluded last year. The Energy Exchange will continue operating in the day-ahead market mode during the suspension period.
