The current year was very important for power sector. Like previous years, the current year was full of challenges.
Despite Ministry of Energy and Ministry of Economy merged in 2017, the Authorities prioritizes to develop the power sector. Consequently, the current year was special in the power sector in terms of development of generation and infrastructure.
It should be noted that Georgia’s hydro-potential is a strategic resource for power sector development. When talking about state resources, we should remember that there are 26 060 rivers in Georgia with a total length of 60 000 kilometers. Total reserves of spring water in Georgia, which consists of water resources of glaciers, lakes and water reservoirs, constitutes 96.5 cubic meters. From all rivers, about 300 ones fit for power generation with 50 billion kilowatt/hour annual generation on average. However, regretfully, today about 20% of total resources are employed that is about 3000 megawatts in total installed generation.
Electricity consumption analysis also confirms the necessity of maximal use of hydro power resources of the country and construction of new hydro power stations. Over the past 9 years (2007-2016), annual electricity generation rose by 38% from 8.346 million kilowatt/hours to 11.573 million kilowatt/hours. It should be also noted that in the mentioned period domestic consumption (2007-2015) rose by 60% from 7.815 million kilowatt/hours to 12.435 million kilowatt/hours, including by 31% on Georgia-controlled territory and by 43% in Russia-occupied Abkhazia. Electricity holds about one fifth of Georgia’s power consumption (20% in 2016).
Moreover, if we take into account electricity consumption forecast indicators due to the base scenario, electricity annual generation in Georgia will rise by 5% and the demand will hit about 17.51 billion kilowatt/hours in 10 years. It should be noted that the demand for 17.51 billion kilowatt/hour consumption may be satisfied from two various sources: imported power and steam power, which is generated of imported raw materials. The first variant, that is electricity imports, is very expensive, because electricity price permanently grows and prices reach the peak in winter period. Moreover, another important problem enhances dependence on the neighboring country and this is quite serious burden on Georgia’s power and political safety. As to the second variant, which implies a maximal charging of steam power stations, natura