Georgia's energy consumption (Nation)
Georgia's energy consumption and production landscape has evolved significantly since the country gained independence in 1991. Historically, energy generation in Georgia began with traditional biomass and coal, transitioning to electricity through the establishment of its first generation facilities in the late 19th century. The country boasts abundant hydropower resources, most notably exemplified by the Enguri Hydro Power Plant, one of the largest in the region. While the post-Soviet era saw a decline in energy consumption and infrastructure challenges, political stabilization in the late 1990s facilitated a restructuring of the energy sector and attracted foreign investment.
Natural gas plays a crucial role in Georgia's energy mix, primarily sourced from Azerbaijan, especially following disputes with Russia. The nation’s total energy consumption includes approximately 4.9 billion cubic feet of natural gas and 7 terawatt-hours of electricity annually, alongside oil consumption of 13,000 barrels per day. Key energy projects, such as major oil and gas pipelines, have positioned Georgia as a significant transit route for energy resources in the region. The current energy system comprises both state-owned and private entities, with ongoing efforts to modernize and expand infrastructure to improve resilience and efficiency.
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Georgia's energy consumption (Nation)
Official Name: Georgia.
Summary: The country of Georgia imports almost all of its oil and natural gas and relies on domestic hydropower for electricity generation.
Georgia became an independent state in 1991, the year that saw the dissolution of the Soviet Union. Before, the country was first part of the Russian Empire and later of the Soviet Union. Georgia’s energy history can accordingly be divided into the preindependence and postindependence periods. The country possesses small domestic sources of coal, abundant hydropower, and almost no gas or oil. The introduction of the modern forms of energy, such as electricity and natural gas, is related to the preindependence period. Before the end of the 19th century, the main sources of energy were traditional biomass and some coal. The first electricity generation facility was installed in the capital, Tbilisi, in 1887. This was a small thermal engine that powered the drama theater. The first hydropower plant came online in 1898, near the popular tourist city of Borjomi. By 1913, there were 7 hydropower plants and a number of smaller thermal engines with the total installed capacity of 9 megawatts. Electricity generation rapidly expanded with the industrialization policy of the Soviet Union. More new plants came online each decade. By far one of the biggest energy-generating facilities in Georgia is the Enguri Hydro Power Plant, which has an installed capacity of 1,020 megawatts; it became operational in 1978.
Along with developing hydropower, Georgia has increased its generation of electricity from local coal resources, and imported gas has also increased. The two largest coal-fired facilities are located in Tkvarcheli and Tbilisi. With the introduction of natural gas, a large gas-fired power plant was constructed in Gardabani, close to Tbilisi, in 1960. The plant consists of several units of different ages with a total capacity of 1,250 megawatts. As gas and hydropower have expanded, use of coal has declined. With the growth of electricity generation, transmission and distribution networks were extensively developed. By the time of the collapse of the Soviet Union, electricity penetration was almost universal.
The introduction of natural gas in Georgia had begun by the late 1950s. Gas was first supplied from neighboring Azerbaijan. In the 1960s, the local transmission grid was connected to the Russian system in the north. At different times, gas has been delivered from Azerbaijan, Russia, Iran, and Turkmenistan. The local transmission grid consists of pipelines of various diameters, and Georgia also transits gas south to Armenia. By the mid-1990s, the Georgian gas grid was 1,205 miles (1,940 kilometers) long, with distribution networks in many major cities, including Tbilisi.
Local sources of oil in Georgia are quite limited. Although oil usage in the region is documented in ancient Greek historical sources, the sources of oil consisted mainly of natural seeps in the eastern part of the country. These were exploited by locals for fuel, lighting, medicinal uses, and export. Industrial exploration started in the 19th century, but it was very sporadic and did not employ geological surveys. The process became more centralized in the twentieth century during the Soviet period, when several new fields were discovered. Production peaked in 1982–83, when it reached 3.2–3.3 million tons per year. The current figures are 40,000 to 160,000 tons per year.
During the early years of the postindependence period, Georgian energy was characterized by a rapid decline in consumption, a deterioration of the technical condition of the system, and severe shortages. The disappearance of the Soviet commodity exchange system, often heavily subsidized, and the transition to the market economy brought many energy companies to the brink of default. Importation of energy resources, especially oil and gas, became a substantial problem: the country’s economy was on the decline, prices were rising, and the purchasing power of Georgia’s people was declining. The nation’s political instability and the inflexible structure of the energy system prevented rapid reform. Investment in maintenance of the existing facilities and construction of the new ones decreased substantially. Terrorism and sabotage also emerged as a new problem, which threatened the physical security of the system. Explosions that destroyed pipelines, transmission lines, and other energy infrastructure were frequent in the early 1990s.
The situation started to normalize by the late 1990s. The main cause of this normalization was a return of political stability with the end of civil war and military confrontations. Legislative and structural reforms and privatization of the previously state-owned utility companies improved the resilience of the system. Most electricity and gas distributors are currently regulated private utilities. Transmission of both gas and electricity is still under state ownership. The assistance of international donor organizations has also greatly contributed to the crisis resolution.
The most important international energy projects implemented in Georgia after independence include the construction of the Baku-Supsa and Baku-Tbilisi-Ceyhan oil pipelines and the South Caucasus gas pipeline. The first became operational in 1999, and the other two were inaugurated in 2006. These pipelines deliver Caspian oil and gas to Turkey via Georgia and have a potential to play a bigger role in the development of Europe’s southern energy corridor. Along with these pipeline developments, two oil terminals have been put into place in Supsa and Kulevi.
The majority of the new developments in the energy sector are concentrated around international transit projects, hydro facilities, and the extension of the domestic transportation and distribution gas grid. Private companies have started investing in generation. A new 110-megawatt gas-powered power plant in Gardabani and a 24-megawatt hydropower plant in Khadorhesi in the northeastern part of the country became operational in 2006. The government is practicing a very liberal policy to attract private investment in hydropower development. Another important project is the construction of a 500-kilovolt transmission line that will connect the Georgian electricity grid to Turkey and facilitate electricity transit and export.
Prospective energy projects in Georgia include a liquefied gas facility in the port city of Poti, gas pipelines to Romania and Ukraine (the White Stream), and the Baku-Tbilisi-Odessa-Plock-Gdansk oil pipeline.
The country on average consumes 4.9 billion cubic feet (1.5 billion cubic meters) of natural gas and 7 terawatt-hours of electricity annually. Oil consumption is 13,000 barrels per day. Gas and oil are mainly imported from Azerbaijan. Before 2008, gas was delivered from Russia, but due to price disputes and political tensions, the government switched to the alternative source. The most important energy companies and institutions include the Ministry of Energy, the Georgian National Energy and Water Regulatory Commission, the Georgian Oil and Gas Corporation Limited, the Georgian State Electrosystem Limited, the Electricity System Commercial Operator Limited, JSC Telasi, Kaztransgaz Limited, Energy-Pro Georgia, Socar Georgia, BP, and several oil exploration companies.
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