The Georgian Energy Exchange is suspending operations of its intraday market, which has been operating under a transitional model. The government issued a relevant decree on September 8, stipulating that the exchange operator will run the intraday market from July 1, 2024 to October 1, 2026, and again from July 1, 2027, while operations will be suspended between October 1, 2026 and July 1, 2027.
According to Energy Exchange Director Irakli Galdava, activity on the intraday market has been extremely limited, with virtually no bids being submitted. He said the decision was therefore made to suspend intraday transactions during the transitional period, while the exchange will continue operating its day-ahead market.
“We are spending resources on this market, working on weekends and so on, but in reality, not even bids are being submitted. It turned out that participants were not interested in this market. Although several participants are registered, trading was not taking place. If you look at the information published on our website, 99.9% of trading takes place on the day-ahead market,” Galdava told BMG.
He explained that the day-ahead market allows participants to trade electricity today for delivery the following day, while the intraday market allows transactions as close as one hour ahead. According to Galdava, participants have found the day-ahead market more attractive, including in terms of price formation, while the intraday market requires greater involvement and operates through matching bids rather than an auction. As a result, the market has largely favored day-ahead trading during the transitional period.
