The year of 2015 was very important and full of challenges for the Georgian power system. Many interesting projects were carried out in both generation and infrastructure parts.
An expert for the Association of Young Financiers and Businessmen (AYFB), Andria Gvidiani evaluates Georgia’s energy sector in 2015.
The energy projects and the power system, in general, is being developed dynamically, but the delay in inaugurating the Khudoni HPP construction works, to his words, is one of the main failures of the current Authorities.
“The year of 2015 has brought very worthy results for the Georgian power system as the country provides tireless efforts for the hydropower potential employment.
The level of energy security and the power system development, in general, depends on hydropower potential employment. Fortunately, Georgia owns huge hydro resources and their rational employment will enable us to ensure Georgia’s electricity independence.
Georgia’s hydropower potential constitutes 80 billion kw/h, of which 40 billion kw/h resources are thoroughly profitable and economically justified. The potential installed generation of the Georgian hydropower resources is 15.500 megawatts, of which we employ only about 3000 megawatts, regretfully.
Therefore, it is important that, despite negative attitudes, we intensify the construction of major HPPs and employment of hydropower potential, in general.
The degree of Georgia’s energy security and energy independence cannot be increased without construction of major regulatory facilities. Important changes were made to the Khudoni HPP memorandum in 2015. Namely, the investor is obliged to leave 1.5 billion kw/h electricity, the full generation, in Georgia. This factor will fully reduce our energy dependence on neighboring countries.
I think the inauguration of Khudoni HPP construction works will be the biggest challenge before the Authorities in 2016.
As to the electricity tariff revision, I believe this was an inevitable decision, because the national currency devaluation increased generation expenditures to steam power plants. All these factors have directly affected the consumer tariffs. I believe the tariff should fully reflect the sector’s expenditures. The power system is not a field that would resolve the social problems”, Andria Gvidiani said.