Big hydro-electric stations are essential for tariff stabilization

“The Association of Young Financiers and Businessmen - AYFB” comments on the tariff correction resolution adopted by the Government and makes some references regarding the issue.

Georgian National Energy and Water Supply Regulatory Commission adopted resolution increasing tariff fees for thermal power plants.  Such increase in tariff was completely due to GEL exchange rate stabilization against Dollar, and this has naturally raised the purchase  price of plural row material of thermal power plants – natural gas.(90% of expenses paid by thermal power plans goes on natural oil). Naturally, these adjustments affect consumers’ tariffs as well and accordingly electricity tariff in regions have increased by 3,95 GEL.

Andria Gvidiani, an analyst with AYFB on energy issues, states, that it is absolutely realistic  to achieve energy sector independence through complete exploration  of the water resources of the country. 

“It is very important for Georgian energy system development to start exploring all hydro resources evaluable  in the country. As you all know, Georgia is a very rich country in record of water resources. Georgia has hydro-power potential of about 80 billion KW/H and utilization of 40 billion KW/H will be economically well-justified and cost-effective. Unfortunately, only 18% of total hydro resources is being explored for now” - states Mr. Gvidiani.   

He also notes, that regardless unpopularity of such decisions, it is important that the Government intensified constructing new hydro electric stations, including big ones.  „Construction of big regulatory hydro electric stations like Khudonhess, Nenskrahess and Namaxvani is vital for the energy security of the country. As you know, Georgia is dependent on imports during winter period, in addition, thermal power plants generate only 20% of the total energy and main row material for generation  is natural gas, which we have to buy from neighboring countries. Therefore, it would be relevant,  in spite of unpopularity of such steps, if the Government would strengthen its work in order to explore more hydro resources existing in the country”, - States Mr. Gvidiani.