Georgia to Join Four Party Unified Electricity Market

TBILISI - Georgia, Iran, Armenia and Russia have agreed to create a joint electricity market by 2019, according to reports from various Armenian news agencies.

The decision was made at a Thursday meeting in Yerevan , said Georgia’s Deputy Minister of Energy Ilia Eloshvili, who attended the meeting with his counterparts from the pact’s three other countries.

According to preliminary reports, the parties signed a road map agreement that outlines all the necessary legal agreements and terms for the North-South energy corridor in 2019.

Armenia’s Deputy Energy Minister, Areg Galustyan, said the joint electricity market could increase the electricity transmission capacity. It hopes to construct a 400 kW transmission line between Iran and Armenia, as well as an analogue between Armenia and Georgia, and a 500 kW transmission line between Georgia and Russia.

“The Georgian side will build 500 kW transmission line in Marneuli, where the substation capacity will be increased from 220 to 500. There are also plans to build a 500 kW line from the Ksani substation to Kazbegi. In the end, after the end of negotiations the Russian side will construct a line from Mozdok for its network,” Galustyan said.

Galustyan also noted that the realization of these projects would make it possible to launch a 1000 MW energy corridor and joint electricity market. Consumers will later be able to choose who to buy electricity from and help to stimulate competition in the national electricity producing companies.

“The market should be opened up for large-scale users who use high-voltage networks during the first stage of the project. If it is implemented successfully, we will be able to talk about the liberalization of networks for small and medium power users. Right now it is too early to talk such things before we create a regional market,” said Galustyan.

By Ana Akhalaia

Edited by Nicholas Waller

Source: eugeorgia.info