Georgia to begin commercial electricity flows to Turkey at month-end

Commercial flows from Turkey to Georgia are expected to start after 24 January, with companies asked to register their interest in capacity to the Georgian grid operator by Friday, 10 January, ICIS has learnt.

Companies interested in electricity exports to Turkey have been asked to submit their applications to the Georgian grid operator by 10 January.

The contracting and final decisions on allocation on the 400kV Borcka-Akhaltsikhe line are expected to be made on 24 January, following the successful completion of the tests and the allocation of net transfer capacities on the line.

The net transfer capacity (NTC) will equal the available transfer capacity (ATC) and has been allocated from Georgia to Turkey this year. Flows will start with a minimum 250MW in January 2014. The maximum amount will vary between 100-350MW in spring, ramping up to 700MW from July to the end of the year.

If there are surplus volumes after the ATC is allocated to registered applicants – also considered as priority groups – the grid operator will organise an auction. Allocation results will be published by the Georgian grid operator GSE on their website www.gse.com.ge within two days after the allocation day.

Exporter requirements

Exporters, as well as companies interested in transiting electricity to Turkey via Georgia, will have to submit a document certifying their registration as a wholesaler. Exporters will also have to submit letters of guarantee proving their solvency.

Only registered applications will take part in the allocation, which will be performed within five working days after the application registration deadline.

Companies expecting to submit applications should e-mail their documents to GSE at atc@gse.com.ge

Exporting parties would be required to provide hourly scheduling for each day of the calendar month one week before the beginning of every calendar month based on the results of allocation of capacity.

The importing party would have to confirm the supply of the quantity/quantities to the other party before the beginning of the calendar month, with changes agreed between counterparties up to a day before delivery.

Border flow benefits

The export directions for each month of the year would hinge on the market requirements and system operation conditions.

But the interconnection is expected to bring considerable benefits to both Turkey and Georgia. On the one hand, Turkey expects to take advantage of Georgia’s abundant and comparatively cheap hydro generation at a time when its electricity consumption is expected to grow at an annual rate of 7% through to 2023. On the other hand, Georgia hopes to sell at attractive prices in Turkey.

Turkey and Georgia started tests on the 400kV line in November, with 350MW capacity on the line ( see EDEM 4 November 2013 ).

Tests relied on transit flows from Azerbaijan and Russia as Georgia did not have enough volume to meet demand at that time of the year. Aura Sabadus