Georgia Energy Profile 2O12

The Ministry of Energy has elaborated "Main Directions of State Policy in Georgian Power Sector" on the basis of the Resolution of the Parliament of Georgia 25/37 of 27 December of 2005

Parliament of Georgia approved the document prepared in the Ministry of Energy on 7 June of 2006 and determined main directions of energy policy.

The main goal of the "Main Directions of State Policy in Georgian Power Sector" is the full satisfaction of the demand of industrial and domestic-communal sector on energy resources on the basis of full utilization of energy resources existing in the country and diversification of imported energy carriers. As well as, achievement of economic independence and sustainability of the sector, provision of energy security (technical, economic and political factors).

It is determined under the "Main Directions of State Policy in the Power Sector of Georgia" that great attention in the utilization of local energy resources shall be attributed to the application of main natural resources of the country. At the same time the long term goal of energy policy is to satisfy demand on electric energy by the power generated at local hydro power plants.

Khudoni HPP

Hydro energy resources of the river Enguri is estimated to reach about 3530 MW capacity with the power production potential amounting to 10, 3 bln KWh. Out of the given amount 5,5 bln KWh has already been realized through the operation of Enguri and Vardnili HPPs Cascade.

In order to utilize the remaining part of economically feasible hydro energy potential, it is proposed to construct Khudoni HPP and Tobari HPP in the upper bank of the river Enguri at the elevations of 510m and 1060 m.

Swiss Joint Venture Colenco/Stucky, the winner of tender announced by the World Bank will elaborate feasibility study for Khudoni project and the French-Italian Company BRL/ARS will provide environmental impact assessment in relation to the project.. The World bank has earmarked USD 3,3 mln for the execution of the project. Strategic assessment of Khudoni HPP development has been provided by the Serbian company SEEC. Panel of Experts composed of five members has been designated by the World Bank to work within the frames of the project. Three specialists are engaged in the elaboration of feasibility study of the project and the rest two ones carry on the environmental and social impact assessment. It is planned to construct Khudoni HPP on the river Enguri at the distance of 75 km from Zugdidi and at the distance of 35 km from Enguri dam. HPP construction commenced in 1979 and stopped 1989. Khudoni HPP rated installed capacity is to be about 750 MW, annual power generation reaching 1,455 bln KWh. The proposed project involves the construction of arch-gravitational dam. The elevation of the plant lower pool is estimated to be 515 m and that of upper pool-700m. Dam foundation is planned to be 501 m and the dam crest to be arranged at an elevation of 702 m. The length of the dam ridge will be 530 m.

Basic characteristics over Khudoni HPP projected on the river Enguri include the following:

Enguri river catchment area in the Khudoni dam section -2 780 km2, mean water flow-130 m3/s, mean water inflow per year- 4,1 bln m3. Khudoni Reservoir total capacity-364 mln m3, reservoir placing volume-252 mln. m3, reservoir surface area-521 hec. reservoir length-10 km, reservoir flooding level-700 m.

Maximal water flow for the period of 10 000 years is considered to be about 2, 500 m3/s on the basis of the preliminary assessment of hydrological conditions.

Khudoni HPP rated water flow will be 510 m3/s.

400 KV Electricity Transmission Line project between Georgia and Armenia

The construction of 400 KV Electricity Transmission Line between Georgia and Armenia is a significant project in terms of regional cooperation between the two regional countries. The length of 500 KV electricity transmission line - “Mukhrani” on Georgian territory is 87 km out of which 74 km will be used for the construction of “Georgia-Armenia” 400 KV Electricity Transmission Line.

After constructing of another 18 km power transmission line between Georgia and Armenia, Georgia will be able to exchange up to 600 MW electricity with Armenia and Iran. The length of the line up to “Razdan” thermal power plant (TPP) substation is 210 km. Using the line Georgia through the “Qsani-500” will be connected with Armenia and Iran. For this purpose it is necessary to install 500/400 KV 800 of autotransfortmer system with relevant cubicles/cells in the “Qsani” substation.

In case of necessity the line will be used as a transit line between Russia, Armenia and Iran or between the Turkish and Iranian energy systems.Currently the designing works over the Georgia-Armenia 400 KV Electricity Transmission Line have been completed and the works on the construction of the line is underway.

Due to the operation of Khudoni HPP the annual consumption of standard fuel will be reduced on average by 600 000 t .

New Applied Technology efficiency and Lighting Initiative

The New Applied Technology Efficiency and Lighting Initiative (NATELI) is a USAID-supported activity designed to promote energy efficiency application in Georgia. NATELI is an extension of the Rural Energy Program, successfully implemented by Winrock International from 2005 -2009.

The two-year NATELI project began in October 2009.NATELI targets Georgia’s large energy consumers—hospitals and condominium associations and helps them implement energy efficient measures and decrease their energy bills. In its scope, NATELI also will implement environmental and public outreach activities.

The main directions of the NATELI project are:

· Help large institutions reduce their energy consumption, with a special focus on helping hospitals. NATELI partners will perform energy audits; examine financial costs and benefits of various energy efficiency improvements; assist with their implementation on a limited basis; and teach local stakeholders how to manage their energy consumption, evaluate the financial viability of energy efficiency improvements, access financing, and to promote these achievements to the public.

· Support pilot projects that promote residential energy efficiency. Project partners will include Tbilisi Municipality and condominium associations. Additionally, NATELI will work with the Georgian State Technical University to introduce energy efficiency (EE) issues into the curriculum, as well as improvements to the GTU building.

· In conjunction with BP Georgia, NATELI will provide support for the USAID/BP Global Development Alliance-funded “Energy Bus.” Now touring Georgian communities for its second year, the Energy Bus, teaches people about renewable energy and energy efficiency, right in their own communities

Georgia has an important wind energy potential, which is estimated to be able to annually generate 4 billion kilowatt-hours.

By the natural energetic potential, the territory of Georgia is divided into four zones:

1. A high speed zone - mountainous regions of Southern Georgia, Kakhaberi Vake and the central region of Kolkheti Valley. The working duration period is more than 5000 hours per year.

2. A partly high speed and low speed zone - the Mtkvari gorge from Mtskheta to Rustavi, Southern part of Javakheti, Black Sea line from Poti to Kakhaber Vake. The working duration is 4500-5000 hours per year.

3. A low speed mountain range effective exploitation zone - Gagra mountain range, Kolkheti Valley and Eastern Georgian lowlands.

4. And a low speed mountain range limited exploitation zone - Iori Zegani and Sioni water reservoir.

The rest of the mountain ranges on the territory of Georgia can not be used for exploitation by wind power stations.

The researches conducted on the territory of Georgia showed some suitable areas for the construction of wind power stations.

Wind power engineering now has the most competitive energetic technology. According to scientists, the share of the wind power stations in the world power engineering will be 10% by the year 2025.

In 2007 the MOU was signed between the Government of Georgia and the Georgian American company “Karidani” on the construction of 24 MW wind plant in the suburbs of Tbilisi Sea. The cost of the project is around 24 million dollars.