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GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia– status quo, challenges and future developments Georgi Shengelia Budapest, 2018

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Page 1: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

GEORGIAN NATIONAL ENERGY AND WATER SUPPLY

REGULATORY COMMISSION

Security of supply and solidarity in Georgia–

status quo, challenges and future developments

Georgi Shengelia Budapest, 2018

Page 2: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

• Legal Framework

• Emergency and solidarity mechanisms

• Diversifying supplier countries and routes

• Increasing energy efficiency

Content

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Page 3: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

• The Main Directions of the State Energy Policy of Georgia, 2015

• Law of Georgia on Electricity and Natural Gas

• A Ten-Year Network Development Plan – Electricity

• A Ten-Year Development Plan for Georgian Gas Transmission Network

• Draft Law on Energy

• Regulation on Security of Electricity Supply - Draft

• NEEAP & NREAP

• Monitoring Rules - Draft

Legal Framework

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Directive 2004/67/EC concerning measures to safeguard security of natural gas supply

By 31 December 2020

Directive 2005/89/EC concerning measures to safeguard security of electricity supply and infrastructure investment

By 31 December 2019

Page 4: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

BSTP-BSRI Black Sea Balancing Market Integration Study

Emergency and solidarity mechanisms – Electricity (1/3)

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Page 5: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

BSTP-BSRI Black Sea Balancing Market Integration Study

Regulators should work with TSOs:

• To develop/amend grid code: • To define ancillary services other than balancing • To define Balancing Responsible Parties (BRP)

• To develop a methodology for pricing balancing services separately

• To develop a methodology for allocation of transmission use costs.

• To harmonize grid codes at the sub-regional level

• Collect cost data of BRPs and calculate true-costs of balancing reserves

• A regulator should approve and publish: • Grid code • Methodology for choosing BRP • Methodology to calculate NTC • Methodology to allocate NTCs among interested market players • NTC allocation results

Emergency and solidarity mechanisms – Electricity (2/3)

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Page 6: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

BSTP-BSRI Black Sea Balancing Market Integration Study

A regulator should develop:

• A methodology and KPIs for monitoring performance of TSO in terms of network security and reliability.

• Define KPIs and necessary input data for monitoring investments in generation capacities in relation to security of supply.

Regulators should monitor:

• TSO's prequalification/certification/monitoring process for ancillary services • Level and effectiveness of market opening and competition based on KPIs. • Investments in generation and transmission capacities in relation to security

of supply. • Merit-order of the balancing suppliers

Emergency and solidarity mechanisms – Electricity (3/3)

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Page 7: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

Diversifying supplier countries and routes- Electricity

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Cross-Border Capacity of Georgia for 2016 and 2020 (MW)

Page 8: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

Draft of National Energy Efficiency Action Plan of Georgia is prepared and the following measures are envisaged regarding the electricity sector:

• Investments in renovating hydropower stations;

• Optimization of capacity reserves and seasonal modes;

• Expansion of transmission network and integration of new capacities into the network;

• Requirements by Rule of Calculation of the Electricity Normative Losses (ensuring investments).

Increasing energy efficiency – Electricity

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Page 9: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

JSC Georgian Oil and Gas Corporation (JSC GOGC) is planning to construct an underground gas storage facility (UGS).

• Increase of security of supply; • Increase operational flexibility; • Satisfy seasonal needs; • Contribution in competitive market development

Natural Gas Network Rules shall regulate emergency management:

• Obligation of the TSO to maintain adequate technical and human

resources to ensure safe and uninterrupted operation of the

system

• Description of the TSO’s responsibilities

Emergency and solidarity mechanisms – Natural Gas

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Page 10: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

Diversifying supplier countries and routes- Natural Gas

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Page 11: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

Draft of National Energy Efficiency Action Plan of Georgia is prepared and the following measures are envisaged regarding the natural gas sector:

• Natural gas savings through replacement of old Thermal Power

Plants with efficient Combined Cycle Gas Turbine technology;

• Requirements by Rule of Calculation of Normative Losses in Natural Gas Distribution Network (ensuring investments).

Increasing energy efficiency – Electricity

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Page 12: GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION · GEORGIAN NATIONAL ENERGY AND WATER SUPPLY REGULATORY COMMISSION Security of supply and solidarity in Georgia–

#whenbalanceisachieved

Georgi Shengelia Deputy Director of International

Relation Department, GNERC [email protected]