Page 49 - GEORptMar20

According to Tvalabeishvili, 350 MW is the maximum power that the Georgian electricity system could receive from wind farms at this time.
"We conducted a study with German experts and found that by 2021, with the reserve capacities we have in the system, we could build about 350 MW of wind power stations and about 130 MW of solar power. If we build more, we could face blackouts since we do not have enough backup capacity," he was cited as saying.
The government has developed incentives to support the development of wind farms. It will pay 6.5 US cents per kWh over the first 10 years of operations.
9.1.10 ​Utilities sector news
Georgia is now the world’s third largest Bitcoin miner, behind China and Venezuela. The scale of the mining pursued by the small country’s cryptocurrency farms is such that it is “sucking the power grid dry” as the enterprises account for some 10% of the country’s electricity consumption some estimates contend,​ according to a BBC ​Business Daily podcast “A hydro-powered Bitcoin boom in Georgia”.
The problem is reportedly particularly acute in Svaneti region, where consumers are exempt from paying for electricity because of harsh living conditions—the situation fostered the development of grey economy Bitcoin mining businesses “patronised by high-ranking officials” according to locals quoted by ​Kommersant​ daily. Frequent power outages are apparently endured by locals.
David Chapashvili from Green Energy, an environmental pressure group, was cited in the podcast as criticising the cryptocurrency mining practice for how much electricity it consumes.
A BitFury-owned Bitcoin mining farm is “guzzling” up 4% of the country’s electricity, or 389.7 million kWh in absolute terms, alone, according to documents presented by the Green Energy representative.
Chapashvili said the country actually has no understanding of the total impact cryptocurrency mining is having on its energy consumption.
“There are lots of micro-miners,” he said. “If you ask a very simple question to the ministry like which sector is consuming [energy] Georgia doesn’t have this kind of analysis.”
“Actually, in reality we don’t know what’s going on or how many consumers are [mining Bitcoin],” Chapashvili added.
The environmental pressure organisation is one of the groups that estimate that Bitcoin mining is using more than 10% of Georgia’s energy supplies. Georgia is a net electricity importer and experiences a deep seasonal power production deficit during the winter when its hydroelectric production capacities cannot cover demand.
9.2 ​Major corporate news 9.2.1 ​Oil & gas corporate news
First-half net profit at Georgian Oil and Gas Corporation (GOGC) plummeted by 68.5% y/y to $11.9mn, despite robust Ebitda, dragged down by foreign exchange effects, according to unaudited results. Revenue was up 17.8% y/y to $160.4mn in the period, mostly due to a 19.8% y/y ($106.7mn) increase in the sale of gas. Revenue from electricity generation, the second largest revenue category for the company, was up
49​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com