Economy
Posted: 3 weeks ago

Gradual Opening of Georgia's Electricity Exchange Begins Today

Starting today, the electricity exchange in Georgia will gradually open. Generation facilities will be represented on the exchange, but it will not include regulating HPPs (large hydroelectric power plants).

Along with generation facilities, large consumers will also be represented on the exchange, although their participation will be voluntary. Imported electricity will not be included in the same system. This market structure will operate for one year, with a full market opening planned for 2025.

Nikoloz Sumbadze, the market monitoring director at SEMEK, mentioned in a recent conversation with EnergyNews that a new trading segment is being added to the existing transitional structure, specifically, daily markets.

"Recently, there have been changes in the concept of the electric energy market, which means maintaining the existing structure while adding a new trading segment, namely, daily markets, which will be monitored by the Energy Exchange of Georgia.

Based on the market concept, participation in the exchange is voluntary, although only power plants that do not have a tariff set by the Commission can participate. Additionally, universal suppliers and direct consumers have the opportunity to participate in the exchange. To put it simply, there are certain entities prohibited from participating in the exchange due to the current situation, but the other mentioned entities can enter voluntarily.

In this model, producers can only sell electricity on the exchange, while consumers or suppliers can buy electricity directly. This is one of the additional restrictions that have been necessary since we are now in a transitional model," said Nikoloz Sumbadze.