T he energy sector is not one of the most developed directions of cooperation between Armenia and Georgia, but the parties started to activate 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. The local production of electricity in Georgia has increased by 42% in 2022, up to 75% of the produced electricity is produced by HPPs, 24% by thermal plants, and 1% by wind power plants.

Enguri HPP produces 26% of Georgia's electricity. Although in recent years Georgia has started to increase the volumes of produced electricity, it continues to import and export for certain months. In September 2023, the Deputy Minister of Economy of Georgia announced that the ongoing year was seeing “record figures' ' in generation 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 exports to Armenia (78 million KW/h), Azerbaijan (86 million KW/h) and Turkey (1.1 billion KW/h) are significantly large. For the first 8 months of 2023 Georgia did not import electricity from Armenia and Turkey.

Until 2013 the import from Russia reached up to 95%, then in recent years it was largely replaced by import from Azerbaijan with 66% in 2017-2021. The import from Azerbaijan was 20% in 2022. The volume of electricity imports from Armenia increased in 2022, reaching 22%. Must be mentioned that according to the 2023 data, Russia is again the leader in terms of import indicators, the volumes of imports from Azerbaijan are insignificant. However, the picture may change in the autumn and winter months.

It is worth noting that in 2019-2021 Georgia did not buy electricity from Armenia. In 2018 it purchased 8 million kW/h from Armenia, in 2017 - 127 million kW/h. Deputy Minister of Territorial Administration of Armenia Hakob Vardanyan announced that in 2022 Armenia exported 365 million kilowatt hours of energy to Georgia, and from 2012 to 2021, 242 million. 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%), solar plants (2.7%). According to the information of the Armenian Hetq media, Armenia provides 20-30% of its energy demand with internal resources, the rest is dependent on imports, mainly from Russia. Increasing energy trade with neighboring Georgia and Iran and 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 the 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 at 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 (Russia-Georgia-Armenia-Iran) project will enable these countries to activate 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 and in accordance with the highest standards. Especially after the change of the balance of power in the South Caucasus region, regional cooperation in the energy sector can be a certain impetus for stability.

Hasmik Meliksetyan, Expert on Georgian issues