Page 62 - GEORptApr21

the form of a grant, while the remainder will be paid with a loan from the European Bank for Reconstruction and Development (EBRD).
Enguri HPP plays a vital role in securing Georgia’s country's energy independence and security. Some 40% of the country’s power demand is met by this plant.
All five generators at the plant were shut down on January 20 for necessary. Urgent work is partly focused on damaged sections of the drainage tunnel. Large volumes of water have been leaking from the sections.
In order to begin repairing the tunnel, it was necessary to entirely empty it. Abkhazia is receiving electricity from Russia to substitute for the power not presently available from the HPP.
9.1.13 Utilities sector news
Power use shows activity of Georgia’s cryptocurrency miners down significantly in 2020
Georgia’s electricity consumption down 5.5% in 2020
Georgia's Minister of Economy Natia Turnava has told a parliamentary hearing that 2% of the electricity consumed in the country in 2020 was consumed by companies engaged in cryptocurrency mining.
However, the level of activity of the cryptocurrency miners as seen in electricity use contracted significantly to 232mn kWh last year from 786mn kWh in 2019. The economic entities officially registered to conduct cryptocurrency mining last year used 132mn kWh (1.08% of total consumption). The rest of the electricity use was attributed to unregistered bitcoin miners.
Several large data centres are registered in Georgia as "direct purchasers of electricity" for the purchase of relatively affordable electricity.
Among the cryptocurrency mining companies in 2020, BFDC Georgia (previously Bitfury) bought the most electricity. Official figures show that other large data centres, including blockchain owned by billionaire Igor Kolomoisky, as well as the companies Aiti Lab and Geo Services, did not actually purchase electricity on the direct market.
In addition to the large data centres, small mining companies are also involved in cryptocurrency production. They are not registered as direct consumers on the power market.
In 2019, the volume of electricity consumed by the large data centres was several times higher than in 2020. Miners registered as direct buyers purchased a total of 786mn kWh of electricity in that year.
The biggest of them was Bitfury, which bought 534mn kWh of electricity; Igor Kolomoisky's Blockfower (122mn kWh); Aiti Lab (73.5mn kWh) and Geo Services (55.8mn kWh). The total consumption of these four companies in 2019 amounted to 6.15% of electricity consumption in Georgia.
Including the consumption of the small miners, it turns out that in 2019 the total consumption of mining companies in Georgia was more than 7% of electricity consumption.
In addition to registered companies, individuals are also engaged in bitcoin mining. The activity is especially prevalent in Svaneti region, as the population living here does not pay for electricity. In conditions with "free electricity" a number of local miners are active in Mestia district.
The losses of the distribution company Energo Pro Georgia grows every year against a background of rising electricity consumption in Svaneti. According to estimates, the company suffers a loss of Georgian lari (GEL) 13-14mn (more than $4mn) per year.
Electricity generation and consumption in Georgia dropped by 5.8% and 5.5%, respectively, in 2020, in line with lower economic activity. According to the Georgian electricity market operator "Esco", total generation
62 GEORGIA Country Report April 2021 www.intellinews.com