Will clean energy pollute Georgian prosperity?
02 October, 2014
Will clean energy pollute Georgian prosperity?
Georgia must tailor its energy policy to the refreshed international focus on cleaner energy policy. This trend took a new and bigger start at the recent UN Summit gathering leaders of 125 countries this past week to find a solution on the impeding climate change puzzle. Leading businesses have approved the Summit initiative to reduce carbon emissions and even leading gas and oil companies made their pledges to sell off their fossil energy assets and reinvest the raised money in
clean renewable energy resources.


Georgia as a country of highlands offering ample hydro resources for Hydro Power Plant [HPP] construction sites hopes to attract more investments in hydro as well as in alternative energy sources based on wind and solar. The points is that developed European and American countries like Norway, Switzerland, Brazil famous for rich hydro potential have already utilized their potential by almost 100 percent while Georgian potential is largely untouched.
According to Revaz Arveladze, President of the Georgian Energy Academy, hypothetically the hydro potential of Georgia is estimated at 200 billion kilowatt/hour, but just 80 billion kilowatt/hour is technically available and only 40-45 billion is economically feasible. Officially, only 20 percent of this potential is used at the moment, which makes the hydro sector attractive to new investments.
The potential wind resources account for 4 trillion kilowatt/hour exceeding the hydro potential by 100 times. But only 3-4 billion kilowatt/hour is technically available at the moment, which is quite a significant volume if we take into account that Georgia consumes just 8 billion kilowatt/hour per year. And if we utilize even one billion out of wind energy it will be quite a relief.
On the other hand, Georgia is an important geopolitical chain in international energy projects like Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum [largely known as Shah-Deniz] pipelines transporting oil and gas to European markets bypassing Russia. Georgia as a transit country has big expectations from both geopolitical and economic points of view.
The Shah Deniz Stage 2 project is set to bring gas directly from Azerbaijan to Europe starting 2018 tentatively for the first time, opening up the Southern Gas Corridor. This corridor is projected to neutralize the 35-year gas supply monopoly of Russian Gazprom to Europe particularly to its South-Eastern countries and enhance the geopolitical importance of transit countries.
On the economic side, the Georgian government expects 400-700 USD million investments in the country from implementation of the Shah-Deniz second phase that will add further 16 billion cubic meters of gas (bcm) per year to approximately 6-7 bcm of the currently operational first phase. Europe has already contracted 10 bcm per year through 25-year contracts and Turkey takes 6 bcm. The project also entails the construction of the Trans Anatolian Gas Pipeline (TANAP) across Turkey and construction of the Trans Adriatic Pipeline (TAP) across Greece, Albania and into Italy.
The contract on transit also allows Georgia to buy 5 percent of gas transported through the pipeline at a preferential price. According to energy sector researchers, if the pipeline will be loaded with the expected 16 bcm, then Georgia will get a cheap 800 million cubic meters of gas. If the first stage capacity varying around 6 bcm is also maintained, in total Georgia may take 1.1 bcm of cheap gas. Implementation of Shah-Deniz 2 requires around 45-48 billion USD and attracting that much money has already staggered the project launch. Now the shift in focus on cleaner energy may complicate the situation even further and put the Shah-Deniz 2 at risk. But Georgian analysts expect no problems to this end. They believe that carbon-based gas and oil energy will be irreplaceable for the near 20-30 years as long as solar and wind are not stable sources: they need back-ups that are normally balanced by hydro and gas power stations while the hydro potential is almost 100 percent utilized in the developed world. Although Georgia has larger room for hydro plants they frequently face fundamental environmental problems.
Liana Jervalidze, an energy analyst, believes that renewable energy can be an alternative to gas and oil only of there is a breakthrough in technology that allows the storage of solar and wind generated energy. Therefore she believes that the Shah-deniz project will not lose importance and Georgian geopolitical position remains as important as ever. Jervalidze indicates the increasing risks of forest devastation in Georgia that poses problems to hydro resources.
“Hydro power is very important to Georgian energy security for the country cannot depend on gas and oil import completely, but hydro includes certain risks. The recent research of Deloitte sends alarming signals that the amount of forest cut down in Georgia is five-times higher than was officially reported. The point is that people in highlands cannot afford gas for heating and still rely on firewood. If forests are devastated, the hydro resources will also shrink,” She elaborated.
Jervalidze believes that Georgia must keep its focus on gas and oil exploration works too as the EU Association Membership unfolds new prospects for the country to become an outer gate of the EU energy community from the Black Sea side. Georgian territory especially its Black Sea shelf is believed to include significant gas and oil deposits. Based on the latest research of American-based Anadarko [aiming to explore oil deposits in the Black Sea territory of Georgia] carried out in the late 1990s, the estimated prognosis available in Georgia equals 2.4 billion tons of oil and 180 billion cubic meters of gas. About 1.2 billion tons of oil is commercially available out of that figure.

Print
Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
12.11.2018
13.11.2018
USD
1
USD
2.7146
2.7166
EUR
1
EUR
3.0800
3.0602
GBP
1
GBP
3.5325
3.4900
RUB
100
RUB
4.0430
4.0131
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30