Donor organization: Open Society Georgia Foundation
Budget: 7720 USD
Duration: 26.12.2022 – 26.02.2023
Project goal: The main goal of the project is
to increase students’ awareness of international
standards relating to the right to adequate housing, challenges
existing in Georgia, mechanisms for
defending the rights, and accountability of the government. The project also
aims to contribute to the development of the analytical
and critical thinking skills of students.
დონორი ორგანიზაცია: ღია საზოგადოების ფონდი
ბიუჯეტი: 7720 დოლარი
ხანგრძლივობა: 26.12.2022 – 26.02.2023
მიზანი: პროექტის ძირითადი მიზანია სტუდენტების ცნობიერების
ამაღლება სათანადო საცხოვრისის უფლებასთან დაკავშირებული საერთაშორისო სტანდარტების, საქართველოში
არსებული გამოწვევების, უფლების დაცვის მექანიზმებისა და ამ კუთხით ხელისუფლების ანგარიშვალდებულების შესახებ. პროექტი ასევე მიზნად
ისახავს სტუდენტების ანალიტიკური და კრიტიკული აზროვნების განვითარების ხელშეწყობას.
Author: Mariam Kukava
On 7th of December, 2022, the Energy Community Secretariat published its Annual Implementation Report which tracks the Contracting Parties’ progress in implementing the Energy Community acquis. The report is highlighting the challenges that the energy sector has faced in the past 12 months and the progress made by the Contracting Parties in reforming their energy sectors. The 2022 report covers electricity, gas, energy regulators, oil, renewable energy, energy efficiency, environment, climate, infrastructure, competition, statistics and cyber security.
Although Russia’s war against Ukraine made the reporting year by far the most challenging in the history of the Energy Community, the Contracting Parties have made significant progress in reforming their energy and climate sectors.
Electricity Sector
The annual implementation report 2022 revealed Georgia’s modest progress in reforming the electricity sector. Georgia now faces the challenge of certification of the transmission system operator. After two unsuccessful attempts, JSC Georgian State Electrosystem (GSE) is still not certified. The reason behind the negative decision on the certification issued by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) is the lack of separation of control between state authorities over energy companies. This is a significant obstacle to future reforms in the energy sector; therefore, the Energy Community Secretariat recommends putting more effort to complete the certification of TSO. On the other hand, the effective unbundling of two distribution system operators, Energo Pro and Telasi, is an important step forward.
As part of ongoing energy reforms in Georgia, in May
2022, the Georgian Energy Exchange was granted a license from GNERC to operate
the day-ahead and intraday markets, and GSE was licensed to operate the
balancing and ancillary services markets.
Although a dry-run of the day-ahead and balancing markets
is ongoing and GNERC has already approved the Rules for the Bilateral Contract
Market and revised the Rules for Balancing and Ancillary Services Market to
address shortcomings and gaps identified, the opening of the day-ahead,
balancing and ancillary services markets was postponed by the decision of Government
for the fourth time until 31 March 2023. The key to preventing further delays Energy
Community Secretariat sees the adoption of a roadmap by the Ministry reflecting
the most relevant measures to be undertaken until 31 March 2023.
Regarding regional cooperation, the Annual Implementation Report emphasizes that Georgia has not transposed the TEN-E
Regulation. The adoption of the TEN-E Regulation would potentially accelerate
the realization of the Black Sea submarine cable project aiming to connect the
South Caucasus region directly to South-East Europe via a submarine cable
crossing the Black Sea.
The project application is on the list of projects to be
potentially included in the ENTSO-E TYNDP 2022[2].
Renewable Energy
Improving Georgia’s regulatory and administrative environment for renewable energies is vital as no substantial progress was evidenced in Georgia in the reporting period.
Georgia adopted the NREAP only at the end of 2019. The
document contains measures to promote renewable energy, however, with no 2020
target.
Energy Community Secretariat emphasizes the importance of
ensuring the simplification of administrative procedures and establishment of a
one-stop shop is important. Although Georgia joined the Energy Community
initiative to establish a regional system for guarantees of origin and the
national electronic registry for guarantees of origin was created, it should be
utilized as soon as Georgian State Electrosystem (GSE), as the designated
issuing body, signs a direct agreement with the service provider.
At this stage, provisions related to the sustainability
of biofuels are not transposed and the legal framework remains completely
non-compliant with EnC aquis. Based on the recommendations provided by the
Energy Community Secretariat, permitting procedures need to be simplified and
streamlined to enable faster deployment and boost of renewables.
Energy Efficiency
According to the Annual Implementation Report, Georgia needs to be focused on the adoption of a large number of drafted by-laws to ensure proper implementation of the Energy Efficiency Law, the Energy Efficiency in Buildings Law and the Labelling Regulation. In this regard, strengthening of institutional capacities and expertise for energy efficiency is vital, including launching new training programmes for energy performance certification of buildings, energy audits, and energy management.
In order to ensure adequate engagement of the private
sector, the Energy Community Secretariat recommends further development of the
market for energy services, including the finalisation and adoption of the
enabling by-laws and model contracts for energy performance contracting. The
establishment of support programmes for individual households and buildings is
deemed beneficial to increase efficiency in heating and cooling in Georgia.
Climate
The development of Georgia's Long-Term Low Emissions Development Strategy continued in 2021 and 2022, with the end of 2022 as the target date for adoption. Georgia is encouraged to finalize its Long-Term Low Emissions Development Strategy and submit it to the Secretariat as outlined in the Governance Regulation.
Georgia started working on the preparation of the Climate
Change Law. Energy Community Secretariat requires the transposition of climate-related
parts of the Governance Regulation in the Climate Change Law of Georgia.
Georgia extensively discussed its draft NECPs in a series
of working group meetings including with representatives of civil society in
2021 and early 2022. The text of the draft NECP is also being updated to ensure
consistency with the Energy Community 2030 targets for Georgia. It is planned
to be subject to public consultation at the end of 2022 and adopted in the
first half of 2023.
Context:
The Energy
Community is an
international organization, which brings together the European Union and its
neighbors to create an integrated pan-European energy market. The organization
was founded by the Treaty establishing the
Energy Community signed in
October 2005 in Athens, Greece, in force since July 2006. The key objective of
the Energy Community is to extend the EU internal energy market rules and
principles to countries in South East Europe, the Black Sea region and beyond
on the basis of a legally binding framework.
In 2016,
Georgia signed the Protocol concerning the accession of Georgia to the Treaty
establishing the Energy Community and became the Contracting Party to the Energy
Community.
[1] This paper covers the progress in
electricity, renewable energy, energy efficiency and climate.
[2]
Georgia is not interconnected with
other Contracting Parties or EU Member States. Thus, no regional integration at
the Energy Community level is taking place at present. Until Georgia has a
physical interconnection with the EU or the Energy Community electricity
markets, a derogation from cross-border cooperation rules applies. At this
stage, there is no coordinated capacity allocation of cross-border capacities
with neighboring countries, except for bilateral cross-border capacity allocation
on the interconnectors with Turkey.
