MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Under the leadership of the First Vice Prime Minister, Minister of Economy and Sustainable Development Levan Davitashvili, a working meeting was held regarding the gradual opening of the wholesale electricity exchange, which was attended by public and private sector representatives.

The First Vice Prime Minister spoke about the importance of electricity market liberalization. As he stated, the selection of the gradual opening model was also dictated by the circumstances to prevent damage to the economy and significant fluctuations in the energy sector, which will ultimately have a negative impact on all sectors. According to Levan Davitashvili, within the framework of the reform, a number of working meetings were held with the parties involved in the process, the preparation of both suppliers and consumers began, and a lot of work was done in connection with the opening of the electricity market.

"Within a year of the launch of the exchange, we will closely monitor how trading on the exchange will proceed, how competencies will be accumulated and we will be more ready to take the next step. The mentioned reform is complex and directly related to the country's security, including energy security issues. Thus, we will be careful when taking each next step, so that the final result contributes to the development of Georgia, increases the well-being of our population and ensures the sustainable development of the country's energy sector" - Levan Davitashvili said.

Irakli Galdava, Director of the Georgian Electricity Exchange, offered a presentation on the transition model of the market to the audience, where he focused on new opportunities and explained the main principles of trading in the transition model.

It was noted that following the decision of the Government of Georgia, the transition model of the electricity market will be implemented in the country from July 1, 2024. It will provide the implementation of a day-ahead and a daily markets in a limited and voluntary mode, and the delay of the obligation of hourly balancing, as well as the deadline for the implementation of the balancing and auxiliary services market until July 1st, 2025. Therefore, as mentioned at the meeting, within the framework of the transition model, the price and quantity of balancing electricity will be calculated every month.

Starting July 1, 2024, market participants will be given the opportunity to trade electricity on additional platforms, and in turn, this process will contribute to the transition to the "target model".

After the presentation, representatives of the private sector participating in the meeting presented their visions regarding the improvement of the transition model of the exchange. The participants emphasized the importance of introducing such mechanisms that would increase the motivation of trading on the exchange. The Minister expressed readiness, if necessary, to gradually consider the possibilities of changes in the transitional model of the market.