Georgian TSO-owned firm to sell Russian energy to Turkish PMUM – source

Karcal Enerji, a company owned by Georgian electricity grid operator GSE, is to import energy from Russia into Turkey via Georgia in December, selling it to the local Turkish day-ahead market PMUM, a source close to the deal told ICIS on Monday.

The Ankara-based company which had imported energy from Georgia before the 400kV line Borcka-Akhaltsikhe was launched this year, is expected to buy the energy from Russia at minimum $30.00/MWh (€24.00/MWh) plus a profit margin, the source said. The Turkish December ‘15 Baseload price was assessed by ICIS at TL192.00/MWh (€69.60/MWh) on Friday.

Karcal Enerji confirmed directly on Monday that it would buy from Georgia and sell to PMUM, although it would not comment on the price or any details regarding the Russian purchase.

A source at Turkish grid operator TEIAS said the regulator EPDK was due to approve the import early this week and added that TEIAS itself would have to give the green light.

TEIAS could not confirm the name of the Turkish counterparty.

GSE was unavailable to comment by publication time.

The deal comes at a time when the Russian rouble plunged 30% year-on-year against the US dollar at the beginning of November. Meanwhile, Turkish December Baseload prices have been soaring amid concerns over Russian gas supply cuts.

Last week Georgia allocated 300MW for transit to Global International Energy Corporation, the sole bidder in an auction held by GSE on Wednesday.

It was not clear who the Russian counterparty was, but several sources noted that one of the sellers may be the Russian state company InterRAO. The information could not be confirmed.

A source at the system operator said the transit from Russia, which would be the first on the new 400kV Borcka-Akhaltsikhe line since it was launched this year, was requested by a single company. He added it would have been possible for other companies to express an interest.

Turkish companies said the auction had been rushed through as the announcement was made on Friday 14 November, and interested parties were given until the following Monday to submit applications. By Monday afternoon only the initiating company had expressed an interest, the GSE source said.

Because there was only one bidder, the capacity was allocated for free.

A Turkish trader said auction rules had also been changed last week without offering clarification on what these involved.

The GSE source said the changes were necessary in order to allow the transit, export or re-export of energy through Georgia.

He added that an attractive opportunity was opening up for companies interested in transiting power, noting that neighbouring Azerbaijan may also be expected to export electricity to Turkey.

Georgia started exporting electricity from its own plants to Turkey in July and is looking to ramp up its volumes to as much as 700MW next year.

There will be no Georgian electricity exports to Turkey next month. Aura Sabadus