Armenia, Georgia have great potential in energy cooperation
The energy sector is not one of the most developed avenues of cooperation between Armenia and Georgia, but the parties started to secure cooperation in this field last year. Like Armenia, Georgia has few fossil fuel resources and is mainly dependent on imports. Most of Georgia’s domestic energy production comes from hydro and biofuels
.By Hasmik Meliksetyan
Expert on Georgian affairs
The local production of electricity in Georgia has increased by 42% in 2022. Up to 75% of its total produced electricity is produced by HPPs, 24% by thermal plants, and 1% by wind power plants. However, Georgia continues to import and export electricity. In September 2023, the Deputy Minister of Economy of Georgia announced that the ongoing year was seeing “record figures” in the production and exports of electricity. According to the official data of the Electricity Market Operator of Georgia, Georgia exported a small amount of electricity to Russia, while the volumes of electricity exports to Armenia (78 million kW/h), Azerbaijan (86 million kW/h), and Turkey (1.1 billion kW/h) were significantly large.
For the first 8 months of 2023, Georgia did not import electricity from Armenia and Turkey. It is worth noting that from 2019 to 2021, Georgia did not buy electricity from Armenia. It purchased 8 million kW/h from Armenia in 2018 and 127 million kW/h in 2017. Deputy Minister of Territorial Administration of Armenia Hakob Vardanyan announced that in 2022, Armenia exported 365 million kW/h of energy to Georgia, and from 2012 to 2021, exported 242 million kW/h. In 2023, however, according to the Georgian official data, Georgia has not yet purchased electricity from Armenia.
It should be noted that Armenia’s electricity production is distributed as follows: thermal plants (43.5%), nuclear plants (32%), hydroelectric plants (21.8%), and solar plants (2.7%). According to the Armenian Hetq media, Armenia provides 20–30% of its energy demand with internal resources, and the rest is
dependent on imports, mainly from Russia. Increasing energy trade with neighboring Georgia and Iran as well as alternative options for electricity have been discussed in recent years.
Infrastructure works, unfortunately, are being implemented slowly. Currently, there are three power transmission lines between Armenia and Georgia: one with a capacity of 220 kW and two with a capacity of 110 kW. In 2023, the construction of a line with a capacity of 400 kW will begin, with a loan received from the German bank KfW. The construction of a new infrastructure connecting Georgia and Armenia is important for strengthening the energy systems of the two countries.
Moreover, in 2022, Armenia and Georgia signed an agreement on mutual electricity aid in emergency situations. The framework agreement of Russia-Georgia-Armenia-Iran continues to operate as well. The construction of a 400 kW line from Iran to Armenia is also underway, which will be completed by the end of this year. It should be noted that after the construction of these 2 lines, the above-mentioned countries will be able to trade electricity more easily.
The implementation of the North-South energy corridor project between Russia, Georgia, Armenia, and Iran will enable these countries to secure regional cooperation in the energy sector. It is important for all parties to implement the construction and operation of the infrastructure as quickly as possible in accordance with the highest standards. Especially after the recent change in the balance of power in the South Caucasus region, regional cooperation in the energy sector can be an impetus for stability.