Elcomm Caucasus – International platform for the industry
3rd International Energy, Power and Telecommunications Exhibition combines entire sector into a single event, presenting products and services of energy and power, electrical engineering, distribution and control, telecommunication and information technology. The event will be held on November 9-11, 2016, at the exhibition center Expo Georgia fairground.
Energy sector in Georgia represents one of the most attractive investment opportunities in the country. New, more liberal laws made investment and project development in energy sector easier and in 2013 the government started a new stage of development, which aims to create a fully competitive market structure and synchronize regulations with EU standards. Also due to increased electricity consumption over past 5 years, additional resources became required to satisfy local demand and Georgia began reaching its goal to become a regional hub for electricity transit among its neighbors. The industry is growing rapidly and it’s poised to grow even further alongside country’s economic growth.
Hydro power dominates electricity generation in Georgia. 7 new hydro power stations were built with total turnover 696.4 KWH per year, it’s planned to build 82 new hydro power stations. 22 hydro plants are currently under construction and 72 small and medium hydro plants are already signed for construction, the ministry of energy has additional 80 HPP projects available for investment.
Current electricity production represents only 40% of Georgia’s estimated annual hydro power output potential, which gives a huge opportunity for growth and development, while the electricity prices are rising and the consumption is growing faster than the production, additional resources are needed and fast, throughout the last couple of years the government made the increase of production priority and numerous projects are planned for near future.
Since generation capacities are still falling short of growing consumption and the country increases import of electricity during the deficit in winter, new opportunities for renewable energy have been addressed to fill in the shortage and satisfy the demand with local production during the period of deficit. In winter besides of the import, Georgia depends of Thermal Power Plants, for the first time in 2015, the government began building a new Wind Power Plants.
Georgia’s output at HPPs is seasonal it peaks in summer and falls in winter, during the summer time Georgia exports the electricity to turkey, which experiences deficit in summer. With new projects in development and increased output in electricity, country’s exporting capabilities will increase and new markets may become available for the industry.
Georgia plans to become a regional hub for electricity transit, the country has the ability to transmit Russian and Azeri electricity to Turkey and Russian electricity to Iran through Armenia. Also Georgia is a transit corridor for Caspian oil to European markets. Under the framework of Black Sea Transmission Network (BSTN), two 350MW HVDC back-to-back links and new Meskheti line connecting Georgia and Turkey, were completed in 2013. Georgia is the first country to install such links, which guarantees a stable exchange of electricity and strengthens Georgia’s potential to become a hub for electricity transit from Russia and Azerbaijan to Turkey.
OTHER REGIONAL MARKETS
Georgia as a center of Caucasian region has the best geo-political location for becoming an international hub for the industry in the region with total population of more than 20 million people. Centered between Russia, Turkey, Azerbaijan and Armenia with Iranian border very close through Armenia, Georgia becomes the only country which can effectively provide a transit corridor for energy sector in Caucasus.