Looking at annual consumption and generation trends, from 2012-2016, it is clear that generation typically exceeded consumption. Consequently, the generation-consumption gap remained positive. However, in 2017 this trend reverted, and the electricity generated by local resources on the Georgian market was no longer enough to supply the local demand. As shown in Figure 1, the gap widened even further in 2018; with the negative gap increasing by 30% (from 344 mln. kWh in 2017 to 447 mln. kWh in 2018).
This significant reversal has motivated us to explore ...
ISET Economist Blog
A blog about economics in the South Caucasus.
Feb
01
Jan
25
“At least we have a lot of water - why should I pay for it?” One can frequently hear this phrase in Georgia. This popular saying is based on the relative abundance of water resources the country has: roughly 15,597 cubic meters of renewable freshwater resources per capita a year, well above the 2,961 cubic meters per capita in the European Union (World Bank 2014). However, having a resource does not mean being able to use it, nor being able to do so in a sustainable manner. Georgia lacks infrastructure both for water supply and sanitation, providing drin...
Dec
28
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...
Dec
03
This year has plagued a number of countries with tremendous natural disasters and extreme weather events. Greece was challenged with extensive fires and South Africa with a shortage of water. As late as November this year, the US was still struggling to tame forest fires. Something is certainly happening with the climate. These problems arise from society only been concerned with growth. The issue is that for far too long we have been assuming that economic growth has no impact on the climate and, more generally, on nature. It is especially concerning th...
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...
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