Galt&Taggart published a report Electricity Market Watch. According to the document, the energy sector witnessed an outstanding year in 2023, marked by record-high export revenue and a positive trade balance. Electricity exports soared to 1.5TWh, reflecting a remarkable 51.2% y/y growth, generating US$ 103.3mn in revenues, an increase of 22.5% y/y.
This growth was attributed to elevated electricity prices in Turkey and increased export volumes, driven by decreased local consumption and enhanced thermal generation. Concurrently, imports were kept minimal, aligning with the reduced energy needs of the Abkhazian region, which receives electricity from Russia at USc 0.1/kWh. Consequently, the year 2023 concluded with a positive trade balance of US$102.3mn, representing a 136.8% y/y increase, and Georgia became a net exporter of electricity, with a record high net export of 0.7TWh.
Electricity consumption in Georgia reduced by 7.9% y/y in 2023, after a decade of unprecedented growth (excluding year of Covid-19). This decrease was attributable to reduced consumption of the Abkhazian region and direct consumers such as data mining and metallurgical companies. The reduced consumption not only led to a decrease in electricity imports but also, coupled with the growth in thermal generation, facilitated an increase in exports.
