Middle East > Georgia > Georgia Electric Profile 2011

Georgia: Georgia Electric Profile 2011

2011/06/25

History

Water and water resources are the primary ones among the natural riches of Georgia. Hydro-energetic potential of Georgia (rivers, lakes, water reservoirs, ices, underground waters, bogs) is on one of the first places in the world.

According to historical sources, the first propagandist of utilizing electric lightening in Tbilisi was a famous public figure Niko Nikoladze. The generation of electric power in Georgia started in 1887, when a heating engine was set in the premises of Georgian Drama theatre. The initiator of this enterprise was a famous Georgian writer and public figure Ilya Chavchavadze.

Borjomula gorge, in the suburbs of Borjomi, was the place where the first hydro-electric station of 103 kilowatts was built in 1898. By the end of 1913, there were 7 small hydro-electric stations and many heat engine electric stations, with a total capacity of 9 megawatts, and an annual production of almost 126 000 kilowatts - hour.

In the twentieth-century lots of new hydro-electric stations were built. In 1927 there was built an Avchala hydro-electric station "Zahes", Abhess in 1928 and Rionhess in 1934. By 1941, the total capacity of Georgian electric stations reached 180 megawatts. In 1945-1960, 11 new hydro-electric stations were put into operation. The deficit for electric power in Georgia and a growing consumer demand for electric power, prompted Georgian scientists and engineers to elaborate a common project with foreign specialists, and construct a unique hydro-electric station named "Engurhess", which was brought into operation in 1978.

The large-scale processing of coal deposits in Georgia, and again, a high demand for electric power, set the precondition for construction of heating electric stations. In 1938, the first aggregates of Tkvarcheli heating station and the Tbilisi heating electric stations began to work. In 1960, when it was decided to build Tbilisi Sresi, a new phase of power engineering development started in Georgia. In 1963 the first block of Tbilisi Sresi was put into operation, while in 1972 after the eighth Tbilsresi block started to work, the total capacity reached 1,250,000 kilowatts-hour. Later, there was a further extension of Tbilsresi. In 1990, the ninth block entered into exploitation (300 000 kilowatts), and in 1994 - the tenth block started to operate (300 000 kilowatts).

Along with the electric station, a 110 kilowatt power transmission line was built and named Zahess-Rionhess. Zahess, Rionhess and Abhess work coordination started in 1934, and this laid the foundation for the Georgian power system. Along with the construction of electric power stations, power transmission line and electric substations, many building projects were realized. Since the sixties, there was an extensive construction of 220 kilowatt substations and their subsequent exploitation.

In 1973, there was built a 500 kilowatts power transmission line of 187.5 km connecting Kartli, Tbilsresi and Didi Zestaponi. During the next stage, a 500 kilowatt power line "Imereti" was built and put into operation. Important connections were set with the neighboring electric power systems as well.

After Georgia became independent, the process of energy sector rehabilitation was started, and this brought together the formation of electric power system as a separate independent structure. In particular, the generation plants were formed as independent electric power stations. In the wake of ongoing rehabilitation process a number of energy companies have been established: "Electrodispecherizacia 2000" LLC, "Electrogadacema" JSC, "Sakenergo 2000" LLC, "Energogeneracia" LEPL, "Sakenergo" LEPL, the Union (Association)-" Wholesale Power Market of Georgia", regioanal and municipal power companies.

Since 2000, a new phase of the energy sector rehabilitation started, this time with the participation of a foreign company. In 2002, before the entrance of the foreign company, "Electrodispecherizacia2000" and "Elektrogadatsema" merged, which resulted in the formation of the "Georgian State Electric System" LLC. In 2001, the management of Wholesale Power Market was transfered to the Spanish company, "Iber Drola" for a period of 5 years. Since 2003, the Irish Company ESB International has been executing the management of the GSE LLC.

Potential

Hydro resources take the first place among the natural riches of Georgia. There are 26 000 rivers on the territory of the country. Their total length is approximately 60 000 km. The entire fresh water supply of Georgia, which is made up of ice, lakes and water reservoirs, is 96.5 km3. Around 300 rivers are significant in terms of energy production; their total annual potential capacity is equivalent to 15000 MW, while the average annual production equals to 50 mln KWh.

Considering peculiarities of Georgian rivers, which are characterized by distinct seasonality, these resources can be distributed only by building hydro power stations with regulating water reservoir in the short and long term perspectives. However, from the ecological point of view, such kind of constructions is difficult. That's why hydro power stations with small reservoirs are more common. The Government of Georgia has approved the State Program – “Renewable Energy 2008” which includes the list of potential greenfield projects and rules for construction of new renewable energy sources.

In the scope of the above-mentioned program memorandums of understanding are signed between the Government of Georgia and investors on the following projects such as: Khudoni HPP – with the installed capacity of 750 MW and generation of 1,5 bln KWh; Cascade of Namakhvani HPPs - with the installed capacity of 450 MW and generation of 1 670 mln KWh; Faravani HPP - with the installed capacity of 78 MW and generation of 425 mln KWh; Cascade of HPPs on the rivers: Chorokhistkali, Lukhuni, Tekhura, Gubazeuli, Mtkvari, Bakhvistskali da etc. totally 21 HPPs (total installed capacity of 1 583 MW and generation of 5,5 bln.KWh) are under construction agreements.

The amount of investments to be intended for the construction of HPPs equals to USD2,4 bln. Against the background of the reduction of the fossil fuel energy resources the utilization of the wind, Solar and geothermal waters, bio-gas and various environmentally clean energy sources has become very actual for electricity generation and other practical reasons.

Georgia has significant wind potential through which average annual electricity generation is evaluated at 4 bln. KWh and installed capacity – 1500 MW. According to the wind energy potential the territory of Georgia is divided into high, mean and low speed zones where the wind speed fluctuates from 2,5m/s up to 9,0 m/s. The work lifetime amounts to 4000 -5000 hours annually. The most favorable places for wind farms are identified including the whole territory of Georgia. At current stage the works are being carried out for the preparation of feasibility study for prospective wind farms which can be placed: - in Iaghluja mountain range (45 MW, 110 mln. KWh), Mta-Sabueti – (100MW, 370 mln KWh) – Samgori upland (45 MW,130 mln.KWh), - Gori –Skra section (90 MW, 250 mln. KWh), the nearby territory of the Kutaisi (90 MW, 225 mln KWh) – in the gorges of the rivers Faravani and Chorokhi – accordingly with 120 and 30 MW installed capacity and 336 and 90 mln. KWh electricity generation and etc.

Taking into consideration geographical location the effective radiation of the Sun is rather high in Georgia. In most regions of the country annual duration of solar shining ranges from 250 up to 280 days amounting to approximately 1900-2200 hours. The total solar energy potential is evaluated at 108 MW. Since the end of the last century the solar water boiling systems have become prevalent.

In our condition the solar energy allows to warm water up to 40 -50 degree. In Georgia solar transformers are reasonable to be used only in the mountainous, non compact settlements and remote places due to their high efficiency. According to the hydro geological study of the territory of Georgia the forecasted stocks of geothermal waters equal to 200-250 mln m3 annually.

Geothermal water temperature ranges from 30 up to 110 0C, and the total debit 160 thousand cubic meters per day and night. There are well bores with water temperature of 85 0C. More than the 80 % of geothermal deposits are located in the western Georgia and Zugdidi –Tsaishi geothermal field. Comparatively low temperature of the geothermal waters does not allow generating electricity.

Despite this the utilization of this resource for providing hot water to settlements is of paramount importance in terms of saving expensive energy sources to be imported as well as reduction of greenhouse gas emissions. Based on the abovementioned information additional 20 bln. KWh can be produced through renewable energy sources in the near future in Georgia with the capacity to save 7 mln. tones standard fuel. At the regional scale the natural riches outlined above will allow us to reduce the utilization of fossil fuel and accordingly the greenhouse gas emissions in the air: - CO2 – by 9 mln. tones, CO – by 5000 tones, NO2 – by 44 000 tones.

Nowadays little amount of the potential of existing renewable energy sources is utilized. By the attraction of investments it is possible to utilize electricity produced through renewable energy sources at regional level in order to reduce greenhouse gas emissions.

This will alsol benefit Georgia in terms of the development of environmentally clean projects under the Kyoto Protocol.

Electric Power Market Rules

According to the electric power marker rules, the license carriers of electric power sector make short term (one year) or long term (5 years) direct contracts on sale and purchase. The contracts are made between the customer and the producer, while the contract on the balance capacity purchase is made with the commercial operator.

The purchaser is obliged to have reserve power amounted to 10% of its utilized power (minimum 5% of this amount should be supplied by local sources. ) for ensuring energy security of the country. It is possible to supply the reserve power by direct contract, private sources or commercial operator. 10% quota of the years 2013-2015 is to be completely supplied by local sources. 2016-2019 required reserve quota will be raised to 15%, which will have to be fully supplied by local sources.

The balanced electric power trade is carried out by the commercial operator. The commercial operator balances the difference between the actual consumption and the amount of the electric power specified by the direct contract between customers and producers.

The electric power trading is carried out by the commercial operator in two ways. First way is either the unplanned over consumption or when the direct contract is not made. In this case the customer automatically purchases the electric power from the commercial operator. According to the second variant the commercial operator and the customer make a contract, which doesn't specify either the amount or the price of the required electric power. After each concrete request the sides offer the prices acceptable for them, in this case the trading is carried out in the so-called electric power exchange format, which doesn't affect the consumer tariff. The system's commercial operator renders services according to the tariffs established by GNERC (Georgian National Electricity Regulatory Commission). Note, that the customer is able to purchase the balanced electric power not just from the commercial operator but also by the direct contract.

The limitations are set for the direct consumers. The direct consumers' statuse shall be accepted only by the organizations, which consume 7 million kilowatt-hours per year.

According to the paragraph 493 of the law about `Electroenergy and Natural Gas`, since August 2008 there was fully deregulation of the hydro electrical stations built after August 1, 2008. They have a right to trade the electric power with free (deregulated) tariffs.

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