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
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after 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.
PHOTO OF THE DAY

Exchange Rates
GEL Exchange Rate
Convertor
19.01.2019
20.01.2019
USD
1
USD
2.6629
2.6629
EUR
1
EUR
3.0368
3.0368
GBP
1
GBP
3.4463
3.4463
RUB
100
RUB
4.0103
4.0103
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
2.6629
EUR
1
EUR
3.0368
GBP
1
GBP
3.4463
RUB
100
RUB
4.0103
January 2019
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 31