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Donor Conference

Donor Conference. Ministry of Energy of Georgia. Current situation. Technical problems Power sector of Georgia – not build to operate independently Economic problems Collection rate Not metered High Indebt ness Not rehabilitated properly for 10 years

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Donor Conference

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  1. Donor Conference Ministry of Energy of Georgia

  2. Current situation • Technical problems • Power sector of Georgia – not build to operate independently • Economic problems • Collection rate • Not metered • High Indebt ness • Not rehabilitated properly for 10 years • Financial aid needed for transition period and basic rehabilitation

  3. Objectives • Self-Sustainability – profitability • Independently operational • Without additional subsidies from donors and / or government • Attractive for private investment • Energy Security • Utilization of transit opportunities • Multiple sources for import • Differentiated markets for export • Otherwise politically and economically dependent • No prospect for economic development • Social tension

  4. Policy • Collection rate • Main problem • 40% collection rate • Investment in metering • Legislation against theft of electricity • Public awareness campaign • Rehabilitation and construction of new grid and high voltage lines • Turkey, Azerbaijan, Russia, Armenia • Rehabilitation of Existing Hydropower Plants • 40-45 % of installed capacity • Spend less on imports

  5. Energy System of Georgia 500KW Ministry of Energy

  6. Hydro Power Plants of Georgia Planned: Hudon HPP 600MW Enguri HPP 1300MW – 700MW Vardnili HPP 210MW – 60MW Shaori HPP 38MW – 18MW Lajanuri HPP 111MW – 30MW Jinvali HPP 130MW – 90MW Dzevrula HPP 80MW – 54MW Gumati I,II HPP 66MW – 39MW Rioni HPP 48MW – 45MW Vartsikhe Cascade HPP 184MW – 132MW Khrami II HPP 110MW – 0MW Khrami I HPP 112MW – 60MW Ministry of Energy

  7. Current achievementsWithout additional investments • Decreasing of electricity looses in high voltage grid • 17% in Winter of 2003 – 9.6% in Winter of 2004 • Relatively improved supply of electricity – up by 16% • Installation of meters at borders with neighbor countries • State budget investment - 2,5 mln USD per month • Enguri HPP rehabilitation project co-financing • Wholesale & commercial metering • Urgent maintenance • Rehabilitation of the 1st unit of Vardnili HPP (70 MW) • Detailed business plan for 2004-2005 • Improved legislation for financial rehabilitation

  8. Projects • Metering • Improved collections • Decreased consumption • Rustavi example • Rehabilitation of HPP • 40 - 50% of installed capacity • “Quick Hit” program • Rehabilitation of Gardabani TPP • Electricity for base load • Problem – Funds for natural gas supply • Rehabilitation of the network • Increased system stability • Winter Heat Program • Improved supply and help vulnerable

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