Why do we care about competitiveness in energy markets? And, what are the benefits of increased competition from the supply side of the electricity market?
The main reason for the additional social surplus derives from increased energy consumption at lower prices. Increased competition in the electricity market is expected to translate into fewer market distortions – be they simply due to the abuse of market power or to the survival of inefficient firms – and, therefore, increased efficiency.
Increasing the level of competitiveness in the electricity mar...
ISET Economist Blog
A blog about economics in the South Caucasus.
Dec
28
Nov
30
After the generation deficit of September, the decreasing trend in generation continues, while the gap between consumption and generation keeps widening. Chiefly, compared to September, total electricity generation has decreased by 8% in October 2018, while in contrast with the previous October, 2017, electricity generation has decreased by 5%. This reduction in generation on a yearly basis is specifically due to the decrease in hydropower (-1%) and thermal power generation (-17%), which more than offsets the increase in WPP generation (+4%). Wher...
Nov
05
After a generation deficit of August, Georgia continues to exhibit a decreasing trend in power generation; compared to August, total electricity generation has decreased by 14% in September 2018. Georgian power plants generated 849 mln. kWh of electricity, while consumption of electricity on the local market was 955 mln. kWh. It should be noted that compared to August, electricity consumption has decreased by 9%.Even though consumption decreased substantially during the month of September, Georgia had to import electricity from foreign power markets.
Ove...
Oct
29
Have you ever thought how Tbilisi would look if the existing old Soviet Union era multi-story buildings were renovated and equipped with rooftop solar panels? There are several good reasons why this might be happening in the future, and why the government of Georgia might want to encourage this development.
On average, over the last year 84% of Georgia’s electricity generation was provided by hydropower plants. However, hydro resources depend crucially on weather patterns. In our previous blog we documented how a change in weather patterns led to a recor...
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