ERRA Regulatory Story of the Month – GNERC, Georgia
In order to facilitate exchange of information and share of best practices, ERRA monitors regulatory developments in its member base with the purpose to highlight top regulatory stories that could be presented to other members as a highlighted policy.
The first issue of ERRA Regulatory Story of the Month features new wholesale market rules approved recently by the Georgian National Energy Regulatory Commission (GNERC).
Since becoming a Signatory Party to the Energy Community Treaty in 2017, Georgia has undertaken concrete measures to transpose EU Acquis Communautaire in its national legislation, most recently through the approval of a new Law of Georgia on Energy and Water Supply. The Law was approved by the Parliament at the end of last year, paving the way a competitive electricity market.
In August 2020 GNERC, the Georgian Regulator, approved Wholesale Market Rules based on a market design concept approved by the Government. According to the newly adopted Market Rules, the wholesale market will comprise of a day-ahead market, intraday market, balancing and ancillary services market. The Electricity day-ahead and the intraday markets shall be operated by the Georgian Energy Exchange, whereas the balancing and ancillary services markets will be under the responsibility of the Transmission System Operator.
The Market Rules approved by GNERC will promote entry of new participants into the market, facilitating competition and leading to stable and transparent electricity price formations produced through the EUPHEMIA algorithm. Apart from promoting competition, market liquidity, fair price setting and efficient management of the local resources, Georgians expect that the implementation of such a trading mechanism will facilitate cheap energy resources in the long-term perspective that will ensure affordability of the electricity for the customers.
The rules will become effective July 2021 while the platform is currently undergoing dry-run testing.
For more information please contact Nino Bukhnikashvili at .