From July 1, Georgia has initiated a transitional model for its electricity market, preserving the existing structure of the wholesale market while introducing new trading opportunities. This transitional phase will continue until July 1, 2025, when further market reforms are planned, the Georgian National Energy and Water Supply Regulatory Commission (GNERC) reported.
According to GNERC, under the new model, participants can engage in day-ahead and hourly electricity trading on daily markets, however with certain restrictions. Importers, exporters, and wholesale suppliers are currently restricted from participating, while large consumers, suppliers, and system operators can only purchase electricity. Deregulated producers are allowed to sell electricity, aiming to manage risks effectively during this transition period.
The Georgian government expects that these changes will enhance competition, liquidity, and transparency in the energy market. This, in turn, is anticipated to lead to more efficient use of energy resources, cost-reflective pricing, and ultimately, lower electricity prices over the long term.
Currently, the Energy Exchange of Georgia has five registered participants, with more potential participants closely monitoring developments. However, initial trading volumes have not yet met expectations, prompting ongoing evaluation and adjustments to the transitional model to encourage broader participation.
