Welcome to ESCO's web-site

Georgian Energy System has begun its independent functioning in the 1990-ies. It was quite a difficult period, when existing economic cooperation system had failed along with the political system, connections and structures, active for the decades.

In parallel with the development of sovereign state of Georgia, the independent power system has evolved, aimed at achieving the uninterrupted supply of energy for the Country. However, the energy sector remained the subject of great dissatisfaction of Georgian population quite a long time. Under the circumstances, the Wholesale Electricity Market was performing the functions of electricity supply, distribution and sale.

After about 15 years of growth and development, replacement of old with new radically modernized wholesale electricity trade market has become necessary, as a result of upgraded commercial structure, given the domestic and international experience, accumulated at the power systems, along with the established and renewed energy connection, rehabilitation of energy units and overall development strategy of energy system. Aim of this structure was to be profit oriented in parallel with the establishment of stable energy and financial environment at the power system, along with retaining the electricity pricing, sufficient for the interest of the Country and participating in the process of solving other strategic tasks. From 2006, the Wholesale Market has been replaced by the Ltd Electricity System Commercial Operator (ESCO).

On September 1, 2006, the ESCO has commenced its operation based on the amendments introduced to the Law of Georgia on Electricity and Natural Gas. According to this Law and the Electricity (Capacity) Market Rules, the Market Operator undertakes special functions and responsibilities at the power system. Stability of Georgian Energy Sector, uninterrupted electricity supply, protection of trade principles of electricity and Guaranteed Capacity (under the active legislation) as well as development of new modern model of trade largely depend on fulfilling the functions above.

It is on these principles, for years, ESCO is exclusively pursuing the trade of Balancing Electricity and Guaranteed Capacity, representing the party to the contracts signed with the partner companies of neighboring countries on mutual assistance in emergency situations. The ESCO is also actively fulfilling the seasonal need for import, based on the signed contracts; to cover the energy deficit occurred in the country’s energy system.

Totally in 2007-2015, the ESCO sold 12. 676 billion kWh of Balancing Electricity, exported 2,199 billion kWh and imported 3,828 billion kWh of electricity. At the same time, the Guaranteed Capacity Sources have received GEL 404.492 million through the ESCO, which insures their presence as a reliable reserve.

The registration procedure conducted by the ESCO for Eligible Enterprises to access the wholesale trade has become faultless, easy and efficient. 

During the operation of the enterprise, it is accompanied by the transparency and disclosure, as indicated in the data and information published by the ESCO, quite interesting and useful for both local and foreign entities involved.

The ESCO’s structure has been improving over the years. Herewith, it should be noted that in spite of serious and most important functional load, only 75 people are employed at the Company. 

In order to participate in the task of regulating the electricity metering, the ESCO systematically pursues inspection of wholesale metering nodes, according to the approved plan or upon request. Up to 1200 metering nodes are being checked periodically for proper operation. 

Positive results of the ESCO’s performance largely depend on the stable financial position of the enterprise. Average annual turnover of the enterprise exceeds USD 200 million. Proper system of settlement with the Eligible Enterprises and foreign partners has been developed. Average indicator of payment for Balancing Electricity (except for the bankruptcy of companies) exceeds 99%. The obligations to the State Budget are implemented smoothly. In 2007-2015, the total Tax payment to the Budget had been GEL 87.5 million, whereas paid dividends have exceeded GEL 10 million. It should be noted that no violations have been discovered as a result of the audit of financial and economic performance conducted by the supervisory authorities and international audit companies.

Due to the increase of investments in the energy system and construction of new power stations, the ESCO has acquired another very important function - guaranteed purchase of electricity from newly built hydropower plants. 21 such contracts were signed until September 1, 2016.

With the support of the Ministry of Energy and foreign partners, “a day ahead” planning and trade process has started. It is being implemented through the Electricity Market Operator and requires big effort considering the expected economical results, as well as social security conditions and current real situation in Georgia. Successful implementation of this process will create the basis for the next stage - hourly trade, ensure the nation’s interests and compatibility of the European practice and experience, guarantee the independence of Georgian Energy System, as well as form an energy trade model for the internal market and for trading with other countries, which would comply with the European standards.

Modern challenges have raised the issue of ESCO’s cooperation with the organizations that unite the electricity trade participant entities worldwide. Since 2014, the Electricity Market Operator (ESCO) is the member of APEx (Association of Power Exchange), which unites the energy companies of over 40 leading countries. From 2015, ESCO is the member of “Europex” (European Association of Power Exchanges). Totally, 24 power companies are members of Europex. Since the establishment of ESCO, the government has been the owner of the 100% of company’s shares, in the form of the Enterprise Management Agency under the Ministry of Economy. In August 2011, the enterprise has been transformed into the JSC. The JSC Partnership Fund is the 100% shareholder. The Ministry of Energy of Georgia is pursuing the company's management throughout its entire existence.

Since 2006, General Director Bidzina Chkhonia was in charge of the Company, whereas from May 2009, Irina Milorava was the Director General. Vakhtang Ambokadze is the General Director since September 2013.