Electricity consumption was down 3.9% y/y in October 2015, mainly due to a 42.2% y/y drop in consumption by direct consumers (users with consumption of over 7gWh/year). The major contributor to the drop was Georgian Manganese; its electricity consumption declined 52.6% y/y in October 2015 and its share in total consumption fell from 11.3% in October 2014 to 6.2% in October 2015. Even though direct consumers accounted for only 9.6% of total consumption, the decrease could not be offset by the 4.6% y/y increase in retail and commercial consumption via distribution license holders. 10M15 consumption figures are on the rise, with a 1.3% y/y increase in total domestic consumption and a 26.7% y/y increase in exports.
Electricity generation increased 2.5% y/y on the back of expanded TPP output, up 23.4% y/y, while HPP-generated electricity declined 4.9% y/y in October 2015 due to low precipitation. TPP-generated electricity represented 29% of the country’s energy balance, up from 23% in October 2014. Gardabani TPP accounted for nearly 1/3 of total TPP generation, while Mtkvari TPP provided the rest. Imports were down 44.2% y/y, with TPP-generated electricity displacing imports. 2/3 of the imported electricity came from Russia, with the rest coming from Armenia.
Electricity exports increased 26.7% y/y in October 2015 and accounted for 3.1% of total electricity generation. 100% of exports were directed to Turkey. In 10M15, exports to Turkey increased 48.4% y/y to 311gWh, while total exports increased 26.6% y/y to 655.7gWh, generating export revenue of US$ 24.6mn. Total export revenue in October 2015 decreased 18.2% y/y in US$ terms, as average export price was down 35.4% y/y in US$ terms to USc 4.19 as a result of the currency depreciation.
Electricity prices in Georgia declined 17.8% y/y in US$ terms in October 2015, while prices increased 12.2% in GEL terms, largely due to the 36.4% y/y appreciation of US$ against GEL in October 2015. This caused a corresponding decline in average electricity export price to Turkey in US$ terms. Electricity prices in Turkey declined 10.8% in TRY terms; a 31.3% y/y decline in US$ terms was also largely attributable to the national currency depreciation.
