Preparing Ground for Effective Cross-Border Electricity Trading


PMCG as a partner of the USAID Governing for Growth (G4G) program contributes to the introduction of the Electricity Trading Mechanism (ETM) in Georgia.

G4G is preparing to enable competitive electricity trading in domestic and export markets and the ETM will enable simultaneous foreign trade of electricity as opposed to the current one-directional transactions.

To implement changes successfully, the existing customs regime needs to be adjusted, as today this is tailored to single-directional electricity trade.

On May 31, Serbian consultants invited by PMCG- Zoran Vujasinović and Dejan Stojčevski, introduced customs and electricity trading details, and shared Serbian experiences of electricity market development in the framework of the Cross-Border Electricity Trading Summit. The event was organized by G4G, at Technology Park, Tbilisi, Georgia.

The event aimed to introduce the ETM as a tool to enable competitive electricity trading in the domestic and export (primarily Turkish and European) markets. The summit was divided into three panels: Development of Competitive Electricity Market in Georgia; Turkish Electricity Market and Cross-Border Electricity Trading; and Hydropower Investments in Georgia.

Further, PMCG will assess the existing customs regime to identify gaps in regulations and issue recommendations regarding necessary modifications for accurate accounting of imported and exported electricity and proper collection of customs duties.

The changes will deliver streamlined energy trading procedures that support existing market players and, at the same time, promote the domestic market for new entrants. This adjusted legislation will also support the wider process of approximation with EU regulations.

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