USAID ENERGY PROGRAM FINAL REPORT

FINAL REPORT

USAID Energy Program

November 29, 2017 – December 3, 2020

USAID ENERGY PROGRAM FINAL REPORT i

USAID ENERGY PROGRAM

FINAL REPORT NOVEMBER 29, 2017 – DECEMBER 3, 2020

USAID ENERGY PROGRAM

CONTRACT NUMBER: AID-OAA-I-13-00018 /

72011418F00002

DELOITTE CONSULTING LLP

USAID | GEORGIA

USAID CONTRACTING OFFICER’S

REPRESENTATIVE: NICHOLAS OKRESHIDZE

AUTHOR(S): USAID ENERGY PROGRAM STAFF

LANGUAGE: ENGLISH

11 DECEMBER 2020

DISCLAIMER:

This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

USAID ENERGY PROGRAM FINAL REPORT ii

AUTHORS

Author Organization

Daniel Potash Deloitte Consulting LLP

Ivane Pirveli Deloitte & Touche LLC, Georgia

Gvantsa Pochkhua Deloitte Consulting Overseas Projects LLC

Sopo Kalabegishvili Deloitte Consulting Overseas Projects LLC

Augustin (Gus) Manke Deloitte Consulting LLP

Tamar Jaliashvili Deloitte & Touche LLC, Georgia

Eka Nadareishvili Deloitte & Touche LLC, Georgia

Tamar Murtskhvaladze Deloitte & Touche LLC, Georgia

Davit Mujirishvili Deloitte Consulting Overseas Projects LLC

Marina Kevanishvili Deloitte Consulting Overseas Projects LLC

ACRONYMS


ADB Asian Development Bank GNERC Georgian National Energy and Water Supply Regulatory Commission

ACER Agency for the Cooperation of Energy Regulators

GoG Government of Georgia

AYPEG Association of Young Professionals in Energy of Georgia

GOGC Georgian Oil and Gas Corporation

BoG Bank of Georgia GRAM Georgian Resource Adequacy Model

CBA Cost Benefit Analysis GREDA Georgian Renewable Energy Development Association

CEO Chief Executive Officer GRPC Georgian Renewable Power Company

CfD Contract for Difference GSE Georgian State Electrosystem

CoP Chief of Party GTU Georgian Technical University

COR Contracting Officer’s Representative GW Gigawatt

CPPA Corporate Power Purchase Agreement GWP Georgian Water & Power

CSO Civil Society Organizations HH Households

DAM Day-Ahead Market HPP Hydro Power Plant

DCoP Deputy Chief of Party IAG Investor Advisory Group

DEC Development Experience Clearinghouse IEA International Energy Agency

DFC U.S. International Development Finance Corporation

IFI International Financial Institution

DSO Distribution System Operators IRR Internal Rate of Return

DTU Technical University of Denmark ISET International School of Economics at Tbilisi State University

EBRD European Bank for Reconstruction and Development

ISO Independent System Operator

EE Energy Efficiency KfW German Government-Owned Development Bank

EIA Environmental Impact Assessment kV Kilovolt

EMCD Electricity Market Concept Design kWh Kilowatt Hour

EnC Energy Community LCCA Life-Cycle Cost Analysis

EnCT Energy Community Treaty LCR Local Content Regulations

ENTSO-E European Network of Transmission System Operators for Electricity

MEPA Ministry of Environmental Protection and Agriculture of Georgia

ENTSO-G European Network of Transmission System Operators for Gas

MLET Market Liberalizations & Electricity Trade Program (USAID/Armenia)

EPG Energo-Pro Georgia MO Market Operator

ESCO Electricity Market Operator MoF Ministry of Finance of Georgia

EU European Union MoU Memorandum of Understanding

FS Feasibility Study MRDI Ministry of Regional Development and Infrastructure of Georgia

G4G Governing for Growth in Georgia MW Megawatt

GCAP Generation / Consumption Scheduling Program

NCAR National Center for Atmospheric Research

GEDF Georgian Energy Development Fund NEA National Environmental Agency

GEG Gross Energy Group NECP National Energy and Climate Plan

GEL Georgian Lari NGO Non-Governmental Organization

GENEX Georgian Energy Exchange NIRAS Consortium of Danish Company

GGSC Georgian Gas Storage Company NPV Net Present Value

GGTC Georgian Gas Transportation Company NREAP National Renewable Energy Action Plan

GGU Georgian Global Utilities NTC New Technology Center

GHG Greenhouse Gases NVE Norwegian Water Resources and Energy Directorate

GIG Georgian Industrial Group O&M Operation and Maintenance

ACRONYMS


GIS Geographic Information System OTC Over-the-Counter

GNCOLD Georgian National Committee of Large Dams

OWASP Open Web Application Security Project

P2G Power-to-Gas SOCAR State Oil Company of Azerbaijan Republic

PFAN Private Financing Advisory Network SoLR Supplier of Last Resort

PLMS Parallel Market Software SoW Scope of Work

PMCG Policy and Management Consulting Group SPP Solar Power Plant

PMP Performance Monitoring Plan SWOT Strengths, Weaknesses, Opportunities, Threats

PP&E Property, Plant and Equipment ToR Terms of Reference

PPA Power Purchase Agreement ToU Time of Use

PPP Public-Private Partnership TSO Transmission System Operator

PR Public Relations TYNDP Ten-Year Network Development Plan

PURC Public Utility Research Center UNDP United Nations Development Programme

PV Photovoltaic USAID United States Agency for International Development

QWF Qartli Wind Farm USD United States Dollars

RA Resources Adequacy USG United States Government

RDO Reform Delivery Office USoA Uniform System of Accounts

RE Renewable Energy USS Universal Service Supplier

RES Renewable Energy Sources VRE Variable Renewable Energy

RFP Request for Proposal VREST Variable Renewable Energy Summit Tbilisi

RIA Regulatory Impact Assessments WB World Bank

SAOG State Agency of Oil and Gas WEG World Experience for Georgia

SCADA Supervisory Control and Data Acquisition WG Working Group

SEWRC Energy and Water Regulatory Commission of Bulgaria

WPP Wind Power Plant


CONTENTS

I EXECUTIVE SUMMARY .............................................................................................................. 3

II BACKGROUND AND CONTEXT ................................................................................................. 6

III KEY PROGRAM ACHIEVEMENTS ............................................................................................. 8

IV CHALLENGES ............................................................................................................................ 12

V. TASK 1 DETAIL ............................................................................................................................... 13

1.1. Energy Markets Development Action Plan for Electricity and Gas Sectors ......................... 13

1.2 Development Electricity and Gas Markets Transition Plans on Vulnerable Customers ....... 14

1.3 Regional Energy Cooperation ............................................................................................... 14

1.4 Public Outreach ..................................................................................................................... 15

1.5 Action Plan and Transition Plan Implementation .................................................................. 20

VI. TASK 2 DETAIL .......................................................................................................................... 28

2.1 Regulatory Impact Analysis Tools ........................................................................................ 28

2.2 Capacity Building ................................................................................................................... 32

VII. TASK 3 DETAIL .......................................................................................................................... 34

3.1 Investor Advisory Group Meetings ........................................................................................ 34

3.2 Renewable Energy Support Scheme .................................................................................... 38

3.3 Supporting Energy Investment Projects ................................................................................ 40

Off Grid Solar PV System Project for High Mountain Households .............................................. 47

Renewable Energy Investor Guidebook ...................................................................................... 49

VIII. TASK 4 DETAIL .......................................................................................................................... 51

Plan and Design For the National Variable Renewable Energy Forecasting System ................ 51

Forecasting System For Production and Availability of Variable Renewable Energy ................. 53

Establish Procedures for Generating and Sharing Forecasts ..................................................... 55

IX. TASK 5 DETAIL .......................................................................................................................... 57

Critical and Timely Issues for Georgia’s Energy Security ........................................................... 57

Resource Adequacy Study .......................................................................................................... 60

Enguri Hydro Power Plant Due Diligence and Assessment ........................................................ 61

Improving Cybersecurity: Upgrading Planning Software for GSE............................................... 62

Economic Analysis of Pipeline Gas and Alternative Systems for Remote Villages .................... 63

X CROSS-CUTTING ...................................................................................................................... 64

Gender ......................................................................................................................................... 64

Youth Skill Development and Civil Participation ......................................................................... 64


ANNEX 1: CUMULATIVE PMP INDICATOR RESULTS ..................................................................... 67

ANNEX 2: ENERGY PROGRAM RESULTS FRAMEWORK .............................................................. 73

ANNEX 3: DEVELOPMENT EXPERIENCE CLEARINGHOUSE (DEC) LIST .................................... 74

EXECUTIVE SUMMARY

USAID ENERGY PROGRAM FINAL REPORT 3

I EXECUTIVE SUMMARY Deloitte Consulting LLP presents this Final Report for the USAID Energy Program (the Program), Contract No. AID-OAA-I-13-00018 / 72011418F00002 (“Task Order”) which was implemented from November 29, 2017 to December 3, 2020 at a cost of $7.5 million.

Georgia is a precarious position geographically and economically. The energy sector is of course vital to the country’s stability and continued positive westward-oriented trajectory. Accordingly, the USAID Energy Program helped Government of Georgia and other key local and international stakeholders to significantly advance Georgia’s alignment with the European Union and progress towards a modern competitive power market.

The tasks of the USAID Energy Program were: (1) support Georgia in energy market development per Georgia’s obligations under the Energy Community Treaty, (2) build the capacity of GoG entities and staff members to evaluate the fiscal and long-term impacts of regulatory changes, (3) promote energy investments, primarily in variable renewable energy development, (4) support integration of non-hydro renewable energy into the power system, and (5) provide strategic advisory services to the GoG to increase Georgia’s energy security.

In each of the task areas, important progress was made, none more important than the passage, in December 2019, of the “Law on the Energy and Water Supply of Georgia” (the Law) that establishes a solid legal basis for EU alignment, creates the framework for a competitive power market, identifies renewable energy as a key strategic goal, protects vulnerable customers, and codifies the importance of energy security and energy interdependence. USAID Energy Program was instrumental in getting the Law drafted, passed and signed. Georgian political leaders, time and again, referred to the help from USAID Energy Program as critical, because of the Program’s capacity building measures, and for rendering the Regulatory Impact Assessment (RIA). The prerequisite RIA was crucial for the Parliament to first consider the law, to advance through the first, second, and third hearings, and to ultimately pass it.

The second important contribution of the program represents a major shift in the development of Georgia’s energy sector, from hydro-dominance towards using more variable renewable energy. Georgia has had about 85% of its power demand met from hydro resources, but recent demand growth necessitated more power imports and more gas-fired-generation, both of which degraded Georgia’s energy security. Building more indigenous renewable energy was the solution, and the private sector needed to develop and finance it. Accordingly, the program assisted private sector developers to advance 258 MW of wind power through the project development process and up to financial closing. Wind power is not entirely new to Georgia but hundreds of megawatts of wind power is a new and significant level. The Program helped private developers navigate the approval process, interconnect to the grid, negotiate a power purchase agreement, agree on a power price, and, working closely with Ministry of Economy and Sustainable Development of Georgia (MoESD), agree on imbalance charges.

Wind power, because of its variable nature, poses new, thorny, problems to grid operators. The Program helped Georgian grid operator, Georgian State Electrosystem (GSE) to anticipate and accommodate significant variable renewable energy, by setting up a state-of-the-art centralized wind forecasting system. Program engineers also made a Resource Adequacy Study that help GSE assess and plan for how to meet the growing electricity demand. This Study and other analysis done by the Program helped GSE and GoG more generally to set the amount of local generation needed for energy security and for a resilient energy sector.

The challenges of implementing variable renewable energy were not only technical and legal, but also financial. The Program helped developers mobilize $358 million of financing for wind projects, by organizing and supporting an Investor Advisory Group meeting that addressed barriers and helped formulate secondary legislation and simplified permitting requirements to expedite approvals. The Investor Advisory channeled two-way communication, from the private sector to the government to express the bottom-line requirements for mobilizing financing, and from the government to the private sector to express the range of possible support schemes that the government and rate-payers could afford. The Program provided research that benchmarked regional, relevant power purchase prices and support schemes that informed the ultimate terms and conditions arrived at. Government settled on a Feed-in-Premium format that mobilizes private sector investment while maintaining price formation according to market principles.

EXECUTIVE SUMMARY


The Feed-in-Premium support scheme was memorialized in the Resolution adopted in July 2020 by the GoG. Government is transitioning all power purchase agreements (PPAs) to this new design. During the transition period, Government and private sector investors negotiated PPAs that exposed private sector investor to more market risk but provided enough revenue certainty to mobilize financing. These interim PPAs were critically necessary to implement variable renewable energy, an issue which the Task Order anticipated.

The Program deployed international experts paired with local experts to review and comment on PPAs and interconnection agreements. The GoG approved concepts for the aforementioned 258 MW of wind farms, and after several meetings and GSE terms were settled with GSE. Though the projects were fundamentally sound, with the Program’s help in shaping the “teasers,” the developers were able to get in front of international debt and equity investors including US Government’s Development Finance Corporation. A high point of the Program was a wind financing conference held in Tbilisi that attracted 200 participants including global suppliers, investors, and developers.

For reasons of sustainable long-lasting impact, capacity building was a core component of the Program. The Program in each subject matter area quickly acquired a reputation for quality trainings and workshops that were consistently over-subscribed. Targets were set relatively low because the topics were highly technical and specialized, such as how to conduct a Regulatory Impact Assessments. USAID and the Program simply did not anticipate how many people would want to get such highly specialized training. For example, the target for number institutions with increased capacity to conduct RIA was only 2, consisting of MoESD and Parliament. The accomplished result for RIA training was 20, because local professionals all across GoG departments and Ministries and as well local NGOs wanted to get this high-quality training. Similarly, capacity building as counted by members of working groups trained in clean energy was overachieved at 220 to 40. Training in energy security, energy markets, and energy forecasting was overachieved by 996 to 40, mainly as a result of very popular energy trading training with 100 participants per session.

To achieve these successes in legislation, financing, and capacity building, USAID Energy Program always followed a collaborative approach. The Program staff worked closely with staff the members of the Ministry of Economy and Sustainable Development of Georgia (MoESD), Georgian National Energy and Water Supply Regulatory Commission (GNERC), Electricity System Commercial Operator (ESCO), Georgia State Electrosystem (GSE), Georgian Gas Transportation Company (GGTC), Georgian Energy Exchange (GENEX), Georgian Energy Development Fund (GEDF), Georgian Oil and Gas Cooperation (GOGC) and other key Georgian entities responsible for managing and regulating the energy sector.

The Program also successfully coordinated and worked flexibly with the donors aimed at aligning the diverse group in the common development goal to help the GoG and its key energy stakeholders to meet the EU Energy Community - Acquis requirements. The Energy Community Acquis is the overall framework of laws and regulations of core EU Energy Legislation, inter alia, to improve energy security and to establish competitive energy markets. For example, the contract called for the Program to be the main advisor to the GoG on Day-Ahead Markets, but Energy Community also was assuming this role. Meanwhile long-term OTC power markets had not planned to be developed by any donor – it was a gap. After some discussion in the aforementioned Donor Coordination process, the Program took up OTC training, while the Energy Community and its consultants maintained focus on the Day-Ahead Market. Each maintained close cooperation and mutual support. As a result, GoG has been very satisfied with the totality of support from donors and the competitive power market is on-track for go-live, on schedule in July, 2021.

Naturally the Program was affected by COVID. The Program in March 2020 immediately shifted to remote operation, offering webinars and trainings online. The entire planned program was delivered though some experimental innovation was attenuated. Remote delivery was completely effective for training that was of a more traditional nature. Even for the hands-on OTC energy trading, with 100 participants, it was effective and highly sought-after. However, one more experimental intervention (the “Fast-Forward Scenarios Planning”) was only moderately successful because the in-person interaction was really critical. But contrast, the CYPRESS training for institutional reform and development, at GGTC, was also a non-traditional intervention; it was delivered in-person, and despite its frank self-assessment and self-criticism, GGTC was highly appreciative, and they requested additional USAID service.

Although COVID has not had very dramatic effect on electricity and gas demand (down about 7% in 2020 year-on-year), the marginal reduction in energy sector revenue has had a straining impact on

EXECUTIVE SUMMARY


cash flow and finances through the supply chain. While no disruptions in supply occurred, the transmission system operating staff has only five people with total knowledge of system operations – they had to be quarantined and they slept at GSE company premises for several weeks.

Overall, the Program achieved its targets and significantly over-achieved on many targets. Of the 18 Program targets, 2 were underachieved and 16 were significantly overachieved. The main reason for overachievement was the high quality of training offered, the great reputation for training that was built, the resulting oversubscription of training when offered, and additional training programs offered. The underachievement was due to delayed close of financing of projects.

Indicator Program Target

Program Actual

Actual / Target %

1.EG.12-5 - Generation capacity supported by United States Government (USG) assistance that has achieved financial closure 50 0.3 1%

2. Energy generation capacity installed or rehabilitated as a result of USG assistance 50 258 516%

3. EG.12-7 - Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by USG assistance 190,000 2,684,860 1413%

4. EG.12-6 - GHG emissions, estimated in metric tons of CO2 equivalent reduced, sequestered, or avoided through clean energy activities supported by USG assistance 3,100 71 2%

5. EG.12-4 - Amount of investment mobilized (in USD) for clean energy as supported by USG assistance 80,000,000 358,750,000 448%

6. Number of individuals reached through outreach campaigns 10,000 534,679 5347%

7. EG.7.3-2 - Number of people receiving USG supported training in technical energy fields 40 1093 2733%

8. Number of promotional plans, campaigns and materials developed and implemented to electricity and gas sectors reforms, and optimize energy investments 24 43 179%

9. Number of institutions with increased capacity to implement regulatory impact assessments and/or other analysis 2 15 750%

10. Number of laws, policies, regulations, or standards addressing clean energy formally proposed, adopted, or implemented as supported by USG assistance 10 17 170%

11. Number of financial institutions, investment companies and/or private investors exposed to non-hydro RE opportunities as supported by USG assistance 10 40 400%

12. Number of research, analytical and white papers conducted including modern modelling and planning tools, among others 10 22 220%

13. Number of critical energy security issues identified and addressed 5 11 220%

14. Percentage of energy traded on the competitive market by 2020 10% 20% 200%

15. Number of people trained in clean energy supported by USG assistance 40 200 500%

16. Number of institutions with improved capacity to address clean energy issues as supported by USG assistance 6 14 233%

17. Number of laws, policies, regulations, or standards to enhance energy sector 24 28 117%

18. STIR-10 - Number of innovations supported through USG assistance 0 1 N/A

Average 791%

In 2021 and beyond, Georgia will face significant challenges to continue energy reform, including operationalizing the competitive market go-live, resurrection from COVID -19 impact, complications raising tariffs, updating Georgia’s energy mix to accommodate renewables, and grid resiliency issues (especially in cybersecurity). Donor cooperation will be pivotal in these efforts.

BACKGROUND AND CONTEXT


II BACKGROUND AND CONTEXT Georgia’s energy sector was thrown into disarray when the Soviet Union collapsed in 1991 and Georgia became an independent country. All of the former republics at that time faced challenges because of old equipment, non-commercial business practices, lack of regulation, customer non-payment, and many other common problems.

What was uncommon, in the case of former republics in the Caucuses, was that Armenia, Azerbaijan, and Georgia were all tied together in a common grid – the trans-Caucasian grid. The three countries shared electricity and gas resources, shared hydropower reserves, shared generating power plants resources and gas supplies, and shared operational dispatch control of the overall grid. The breakup and national alignment of resources was devastating in different ways. In Georgia, the dependency on Russian gas and electricity led to blackouts and political pressure in the early 2000s. In this dark time, native hydroelectric resources were, quite literally, a life-saver.

Georgia has made remarkable progress since the early 2000s when the energy systems were fragile, both technically and economically. Based in part on those harrowing experiences, Georgian policy-makers made decisions, and took significant steps, to adopt a modern and westward-oriented approach in its energy sector. These steps were unbundling, privatization, establishing a strong regulatory commission, and many other steps that put Georgia relatively at the head the class in energy reform amongst former Soviet republics.

The energy sector has been one component of an overall development journey predicated upon a framework set forth in the Association Agreement signed in 2014 between the European Union (EU) and Georgia, the country hoping to ultimately join the EU. The energy sector in the EU functions according to a framework of directives and rules, and has, in its structure, some common institutions such as the European Parliament, and, specifically in the energy sector, the Directorate-General for Energy, the European Union Agency for the Cooperation of Energy Regulators (ACER), the European Network of Transmission System Operators for Electricity (ENTSO-E), the European Network of Transmission System Operators for Gas (ENTSO-G). For creating pan-European energy market, an international organization, the Energy Community, integrates neighboring countries with the EU.

The Member StaNCPtes of EU and the nine contracting parties, including Georgia, form the European Energy Community with the key objective to create common legal framework for “extended” EU internal energy market.

Georgia became the member of the Energy Community in 2017. The protocol concerning the accession of Georgia to the treaty establishing the Energy Community provides the list of the EU directives and regulations and defines timetable for their implementation. Doing so, Georgia took obligation to gradually implement those set of legal acts (acquis communautaire) in its own legislation - a process called harmonization.

A key pillar of the USAID Energy Program revolved around this harmonization process. The Program provided technical assistance to the key Georgian stakeholders and private sector investors through a wide range of technical assistance, such as document review, advice on international leading practices, development of contract templates, support in legislative and regulatory development, and support to Renewable Energy (RE) project developers to reach financial closure of wind and solar power generation projects. The Program also provided guidance and technical expertise essential for Georgia’s key energy sector representatives to harmonize with the EU energy sector regulatory framework.

In Figure 1, the harmonization process is diagrammed, it starts with Association Agreement signed in 2014, between Georgia and all EU member states. The Association Agreement is a treaty that covers economic sectors and other matters such as free press, democracy, culture, security and many other topics. Energy is treated in the Association Agreement at a high level, and so was further detailed in the Accession Protocol signed in 2016 and ratified by the parliament of Georgia in 2017. The Accession Protocol, an agreement between Georgia and the Energy Community lists, 27 EU directives and orders that need to be established so that Georgia can be said to be in compliance with EU energy framework, videlicet, the Third Energy Package.

The process of Georgia Legislation harmonizing to EU directives, and mainly the Law of Energy being passed shows how those activities and milestones are driving towards the EU Legislation acquis communautaire.

BACKGROUND AND CONTEXT


Figure 1: Diagram showing the Acquis Communautaire that governed Georgia's path towards EU compatibility in the Energy Sector

Source: USAID Energy Program

Final Report

This Final Report, as per the Task order, presents a summary of the accomplishments and results achieved; an overall description of the activities and accomplishments; a summary of problems / obstacles encountered during implementation; success stories; an assessment of the performance in accomplishing the project’s objectives; significance of these activities; findings; comments and recommendations; other pertinent information.

The report is organized as follows: Executive Summary, Background and Context, Key Project Achievements, and Major Challenges Faced. Further chapters provide the detailed achievements according to task:

Task 1 Energy Market Development,

Task 2 Institutional Strengthening and Capacity Building,

Task 3 Energy Investment Optimization,

Task 4 Grid Integration of Variable Renewable Energy (VRE),

Task 5 Strategic Advisory Assistance to the Government of Georgia (GoG)

Cross Cutting The Annexes provide information on: Performance Monitoring Plan (PMP) results and the list of the Program’s deliverables available on USAID’s Development Experience Clearinghouse (DEC).

KEY PROGRAM ACHIEVEMENTS


III KEY PROGRAM ACHIEVEMENTS

TASK 1 - ENERGY MARKET DEVELOPMENT KEY ACHIEVEMENTS

The USAID Energy Program work was vital in the steps taken by the GoG to advance competitive energy markets, specifically, the adoption of the “Law on the Energy and Water Supply of Georgia” and the “Law on Promoting the Production and Use of Energy from Renewable Energy Sources.” The Program facilitated the passage of the Law on Energy and Water Supply of Georgia in part by commenting on drafts and centrally by rendering the prerequisite Regulatory Impact Assessments (RIA) of Proposed Energy Law on Electricity Prices and RIA of Proposed Energy Law on Natural Gas Prices. The Program also enhanced the adoption of the “Law on Promoting the Production and Use of Energy from Renewable Energy Sources” by administering RIA on Support Schemes for Renewable Energy and by commenting on the drafts which were incorporated in the final Law.

The USAID Energy Program delivered technical support to the GoG’s counterparts through extensive capacity building and knowledge sharing about competitive energy markets. Targeted interventions facilitated the adoption of the Electricity Market Concept Design, which is one of the indispensable documents for electricity market reform. The Concept Design sets the guiding principles for organizing and functioning of electricity wholesale market, as well as sets the mechanism for fulfilling commitment assigned under agreements concluded with the energy entities, special requirements of electricity supply of the occupied territories of Georgia, and public service organization. The Program’s experts rendered advice at each revision, and comments were duly incorporated into the finally adopted Design.

At the request of the MoESD, the Program developed the “Energy Policy Concept”, which is aligned with the requirements provided in Article 7 on State Energy Policy of the Law of Georgia on Energy and Water Supply. The document provides a solid base for further in-depth analysis and elaboration of the National Energy Policy Document and aims to foster the initiating of the scoping procedure of the draft National Energy Policy Document including the National Energy and Climate Plan (NECP).

Energy Law, Renewable Energy Law, and critically important secondary legislation

The USAID Energy Program supported and guided GNERC in the development of the United System of Accounts (USoA), which is a widely recognized practice aimed at enhancing transparency through the elimination of corruption and timely identification of irregularities. After a series of targeted trainings and discussions, the Program officially transferred to GNERC the USoA for Regulated Gas Sector.

Uniform System of Accounts

The USAID Energy Program facilitated the establishment of GENEX and complimented the effort with targeted set of trainings to mobilize essential resources across Georgia’s energy sector to enable future competitive market participants and service providers to effectively engage in energy trading.

Day-Ahead Market (DAM) Operator



TASK 2 - INSTITUTIONAL STRENGTHENING & CAPACITY BUILDING KEY ACHIEVEMENTS

The USAID Energy Program, working mainly through local subcontractors, rendered 12 RIAs in priority areas for the GoG. These RIAs were, inter alia, critical to passing the new Energy Law and Renewable Energy Law. The RIAs contributed to the development of meaningful legislative strategies through the improved legal and regulatory framework and increased resilience in the energy sector. Six (6) local firms were subcontracted and cultivated to produce ten RIAs of international quality level. RIA results were presented to stakeholders in multi-donor and multi-stakeholder workshops, to ensure all views were collected and reflected in the RIAs. Mainly, the Energy Law would not have been passed and signed without the USAID Energy Program’s RIAs.

In addition to producing RIAs, RIA training was deep and broad, to leave behind increased capacity of local Georgian experts to conduct RIAs. This created a more supportive policy, legal, and regulatory environments for private sector deployment and investment in advanced energy systems. The Program outstripped contractual obligation and delivered 19 RIA trainings, channeling technical expertise that empowered participants with better analytical skills to drive new policies and regulations and ensure policy coherence, quality, and consistency to support evidence-based decision-making.

Regulatory Impact Assessments

More than any other international donor, the USAID consistently offered a high volume of trainings and study tours on how to establish a competitive, transparent, well-regulated energy sector. Many of the energy sector’s senior decision makers participated in the study tour to the US and Europe coordinated by the USAID Energy Program. The Program outstripped the target and conducted eight (8) international study tours in pre-selected countries. The participants visited Romania, Lithuania, Austria, the Netherlands, Czech Republic and the U.S. Through these tours, the Program brought needed intervention for strengthening the capacity among the energy stakeholders. Mobilizing required skills set across the energy sector facilitated the adoption of the best practices for advanced energy system implementation.

Capacity building, training, study tours

The USAID Energy Program’s success may also be measured by the commitment towards youth development in line with the evolving Georgia’s energy market needs. The Program put intensive effort into workforce development programs to prepare young people for meaningful work opportunities through access to coaching, tailored trainings and workshops. As a result, three former Program’s interns today are full-time employees of GSE and Black Sea Energy, and another three were hired by the Program as full-time staff members.

Internship Program for Youth

To prepare the GoG and the energy sector for a competitive energy market, the USAID Energy Program administered tailored training on forthcoming DAM and Balancing Market and Over-The-Counter (OTC) Forward Market. MTX Commodities Ltd was subcontracted to deliver this training using its demo version of OTC trading platform. More than 100 energy experts obtained knowledge on energy trading which is an essential part of a competitive and transparent energy market. The created knowledge pool will enable the institutions to be effective central actors in the transition process and reshape approaches to advance development goals in line with the EU regulations.

Energy Trading Training for 100 participants



TASK 3 - ENERGY INVESTMENT OPTIMIZATION KEY ACHIEVEMENTS

Private sector investors committed financing and made significant progress towards 258 MW of new generation capacity. With the assistance of the USAID Energy Program, four wind projects were successfully shifted up to the final development stage of financial closing. As a result of the Program interventions and technical support provided, the four projects totaling $358 million of private sector investment are at this advanced level. The GoG approved the Concept Notes and they are pending signing the Memorandum of Understanding (MoU). COVID -19 and presidential elections affected the final Power Purchase Agreement (PPA) signing process. Equity investors have committed financing and pre-construction late-stage development activities are on-going.

258 MW of wind projects worth $358 million of private sector investment

To help Georgia strengthen its energy security and to ensure a stable supply of electricity to all citizens, the Program provided technical assistance to the MoESD and the Ministry of Regional Development and Infrastructure (MRDI) to implement cost-effective technology for the electrification of off-grid households by helping MRDI to procure and install Solar Photovoltaic (PV) Systems. To implement this result, the GoG allocated Georgian Lari (GEL) 2 million from the state budget to install Solar PV systems for 207 permanent residents in off-grid villages of Georgia. To ensure the long-term sustainability of the solar installations, the Program delivered system maintenance trainings to the residents on the most effective use of the Solar PV Systems.

Off-grid solar in 207 homes in 95 villages

The Program developed an innovative, web-based Interactive Renewable Energy Investor Guidebook, that helped mobilize private sector investment in clean energy. This was the first publicly available document that provided details on how to navigate the project development process consistent with all of the legal requirements for the successful implementation in Georgia, since adoption of Law on Public Private Partnership (PPP). The Interactive Renewable Energy Investor Guidebook captures and explains all of the requirements set forth in the new Law on PPP that was passed in 2018. The Program transferred stewardship of the web-based ‘Interactive Renewable Energy Investor Guidebook’ to the GEDF in 2020.

Interactive Renewable Energy Investor Guidebook

TASK 4 - GRID INTEGRATION OF VARIABLE ENERGY RESOURCES KEY ACHIEVEMENTS

To enhance the VRE utilization and grid integration, the USAID Energy Program developed a pilot system to make accurate VRE forecasting, indispensable not only for grid integration but also for aligning with the EU market. This successful cooperation was facilitated amongst technology providers UL Services Group LLC (formerly AWS TruePower LLC), ENFOR, and with the GSE. GSE got access to forecasting services for the existing 20 MW Qartli Wind Farm, and with six potential new wind farm locations under development by three private developers. GSE now can use the system to plan and schedule the expected wind power input, ensuring that wind power resource becomes a reliable and important part of Georgia’s overall energy mix. Advanced wind forecasting, now demonstrated, aligns with European standards. This will greatly improve the enabling environment for potential investors and new developers of wind power and contribute to Georgia’s energy security.

State-of-the-Art Wind Forecasting



TASK 5 - STRATEGIC ADVISORY ASSISTANCE TO GOG TO INCREASE ENERGY SECURITY KEY ACHIEVEMENTS

The USAID Energy Program created Energy Security Working Groups for Electricity and Natural Gas. The members of the Working Groups were the MoESD, GNERC, electricity and natural gas Transmission System Operators (TSOs), distribution system operators, state-owned energy enterprises, Civil Society Organizations (CSOs) and Academia. Working Group members developed and prioritized a list of Critical and Timely Energy Security Issues. This helped direct technical assistance to the most critical issues needing urgent attention. The Working Groups was a platform for discussing security of supply and related issues, sharing knowledge and establishing common understanding amongst its members. The act of meeting and open discussion enabled a clear consensus to develop, wherein the Enguri Hydro Power Plant was seen by members as the most critical element that could impact Georgia’s Energy Security.

Energy Security Working Group

The sustainable operation of the Enguri Hydro Power Plant (HPP) was established by Working Group members as the predominant priority for the energy security of Georgia. Members sought to know the condition of Enguri, its vulnerabilities, and its technical sustainability. To answer this, the Program deployed international energy expert Mr. Phil Hoover’s visit to Enguri HPP, to identify problems, and to identify the most reliable and cost-effective solutions. Mr. Hoover together with Program’s international and local technical experts analyzed the current state of the Enguri HPP and developed a report with a prioritized list of maintenance works. The report incorporates valuable recommendations based on the international expertise including, the significance of meeting the safety criteria and their long-term implications on the financially rational cost estimations for necessary continued rehabilitation. This report was shared with GoG and relevant Donors, and also was input to the Resource Adequacy Study.

Enguri Dam Study

At the request of the GEDF, the USAID Energy Program prepared a Resource Adequacy Study that identifies the amount of domestic generation capacity for the security of supply in Georgia. The Resource Adequacy Study is based on modeling developed by the Program, the Georgia Resource Adequacy Model, a tool enabling GSE and other interested parties to run scenarios, adapt assumptions and observe sensitivity of different variables. Most importantly, the international expert confirmed GSE’s Ten-Year Network Development Plan that called for more domestic power generation. GSE appreciated the Program’s “stamp of approval,” since in reaction to GSE, the MoESD and Ministry of Finance debate the need for additional capital expenditure which cost is ultimately gets borne by ratepayers.

Resource Adequacy Study

At the request of the MoESD, the Program developed a “Cost Estimation Study of Gas Pipeline Network and Alternative Systems for High-Mountainous Settlements of Georgia”. The Program developed technical pre-feasibility study on pipeline gas networks for 1,178 villages across Georgia. The study covered 37 municipalities containing 71,966 households. The Program made a Cost-Benefit Analysis (CBA) to evaluate the economic viability of gasification and Life-Cycle Cost Analysis (LCCA) to compare gas pipeline networks to alternative options. The delivered report enabled MoESD to develop a strategy for future gasification of all high mountain regions, a fundamental goal for the energy sector of Georgia, and one that is required under EU acquis communitaire.

Gas Supply Feasibility Study for 1,178 Remote Villages

CHALLENGES


IV CHALLENGES Government Reorganization and Personnel Changes

The Minister of the MoESD first changed in March 2018. The key counterpart at the MoESD was shifted to GEDF in September 2018. In May 2019, the Minister of the MoESD was changed again and a new head of energy group within the MoESD was changed. The Chief Executive Officer (CEO) of GSE was changed in May 2019. Each change required educating the new ministers and new CEO about the USAID Energy Program. Each time the Program successfully restored relations and understanding but it did delay Program implementation.

Georgian Stakeholders Not Aligned on the Market Framework

Different entities had different visions about roles and responsibilities in the post-reform market environment. Some entities were going in different directions in ways that were incompatible, such as claiming which entity should be the power market operator. While the Energy Program helped manage these issues, and helped getting to workable decisions, some ideas were fundamentally in conflict and took a lot of time and spirited discussion to resolve.

Turkey-Georgia Working Group Meeting

Throughout the life of the project, the Program faced problems in organizing the Turkey-Georgian Working Group (WG) meeting in Turkey. To some extent this was because of changes in the Georgian government that affected the organization of the WG meeting. Also, an issue was Turkey’s geopolitical views in relation to the U.S. and the GoG’s attitude to avoid involving the USAID funded subcontractor in organizing Turkey-Georgia energy WG meeting.

Delayed Procurement of Wind Forecasting Service

GSE was unfamiliar with the latest practices in wind forecasting and was insisting on terms that the offerors could not meet. Also, the offerors were somewhat impatient with a novice client. It was challenging to maintain comparability amongst offerors and consistency with the Request for Proposal (RFP). All problems were settled including the challenge relating to confidentiality for data exchange amongst GSE and the vendor.

COVID-19 Global Pandemic

The spread of the Coronavirus Disease (COVID -19) in March 2020 required significant changes in the work format to contain the spread of disease. The Contractor strictly made Program Staff work safely home while continuing to remain productive and meeting the assigned contractual obligations. The Program adjusted to fully online work and staff continue to deliver tasks are executed in compliance with the Program.

Power Purchase Agreements (PPA) on Electricity Off-Take Tariff

Wind projects successfully reached the final development stage before the close of financing. The projects were promised an electricity off-take tariff of $0.065 USD/ Kilowatt Hour (kWh), however, the pandemic, reduced demand, and subsequent credit squeeze caused the GoG to change its negotiated conditions. As of this writing, a new tariff rate was negotiated but financial closing was delayed until after elections.

Task 1 Detail


V. TASK 1 DETAIL

The USAID Energy Program supported the GoG and the key energy stakeholders in meeting the Georgian Government’s commitments made under the Energy Community Treaty. Those commitments concerned many elements, of which three critical ones were: 1) establishing a competitive power market, 2) increasing the amount of renewable energy in the system, and 3) protecting vulnerable customers. To drive progress towards those commitments, the Program developed 84 deliverables for the MoESD, for the Parliament and for the key energy stakeholders.

One of the central issues in carrying out the Program was that the three critical elements (power market, renewable energy, and vulnerable customers) were not only mutually exclusive but that any one of them could be used to thwart the other two. Georgia has a free press and dynamic political environment; for example, public opinion could be harnessed to stop the new competitive power market. Program staff had to develop solutions and approaches that would maintain progress across all three elements, without vitiating any one of the individual elements.

To maintain overall positive progress, the subtasks under this Task 1 and certain subtasks in Task 3 were critical to articulate together carefully with GoG and other donors. Particularly Task 1.2 concerning Vulnerable Customers was vital to achieving passage of the Energy Law under Task 1.5. In developing support schemes as delineated in Task 3, it was critical to accurately convey the tariff impact in the outreach activities in Task 1.4, in order to counter potential “fake news” messages that tariffs would shoot up if variable renewable energy were to be significantly increased. More generally, the Program worked closely with GoG on public outreach related to all aspects of market development, including modeling and analysis that depicted the impact of market development on all customer classes.

What follows is a description of activities in each subtask in Task 1.

1.1. ENERGY MARKETS DEVELOPMENT ACTION PLAN FOR ELECTRICITY AND GAS SECTORS

The USAID Energy Program developed Action Plans for the Georgian Electricity and Gas Markets to track the tasks and implementation timeframe, across the government and all donors, aimed at facilitating the compliance with the commitments under the Energy Community Treaty (EnCT).

1. The Program developed and updated the Electricity Market Development Action Plan annually. The donors and stakeholders used the document as guidance for their activities within the frame of the overall reform implementation process.

2. The Program developed and updated the Natural Gas Market Development Action Plan. The donors and stakeholders used the document as guidance for their activities within the frame of the overall reform implementation process.

One of the “Journey to Self-Reliance” outcomes of the Program’s engagement was that during the life of the Program the MoESD accepted the role of a supervisor in charge of monitoring the Action Plans. By the end of the Program, the MoESD took on the responsibility to call for a donors’ meeting, set an agenda, collect progress updates, design a plan to fill the existing gaps to avoid work duplications, and to facilitate communication across donors.

Donor Coordination Meeting on April 1, 2019 to detect the overlaps and gaps within the activities of different donor organizations and International Financial Institutions (IFI’s) that support Georgia in energy reforms.

Task 1 Detail


1.2 DEVELOPMENT ELECTRICITY AND GAS MARKETS TRANSITION PLANS ON VULNERABLE CUSTOMERS

The Program developed Transition Plans for Gas and Electricity sectors. The plans were meant to minimize the impacts on socially vulnerable ratepayers and small businesses due to increased cost of the energy systems and market development. The transition plans reflected the leading practices and promoted the adoption of cost-reflective tariffs.

The issue of vulnerable customers is very much linked with other Tasks, because of the political sensitivity. The Program had to be sensitive to opponents to market reform hijacking the issue of vulnerable customers and to use disinformation / misinformation to thwart market reform such as passing the Energy Law. Accordingly it was important to develop Transitions Plans addressing, most importantly, the level of tariffs.

Under this Task 1.2, the activities were:

1. The Program developed the Electricity Market Transition Plan on Vulnerable Customers, which emerged as the baseline for the other donor companies looping in the same topic by the Ministry and used for debates on subsidies and decisions made by competent authorities

2. The Program developed the Natural Gas Market Transition Plan on Vulnerable Customers. This document was complimented with a gas study on remote villages to enable the Government to develop sensible policy.

1.3 REGIONAL ENERGY COOPERATION

One of the main tenets of the EU energy sector framework – indeed, one of the main tenets of the EU

overall economic framework in a “single market” approach. EU member states are required to, or

encouraged to, depending on the sector, open their borders to free trade. Most sectors and most

countries have many conditions and caveats, and the energy sector is no exception. Still, however,

the ideal of free trade and inter-dependency in energy is the goal. The Energy Program sought to

increase free trade and inter-dependency in the energy sector, between Georgia and its neighbors.

Georgia-Armenia Working Group Meeting – the USAID Energy Program in collaboration with the USAID/Armenia Project MLET organized three Georgia-Armenia Joint Working Group meetings during the life of the project. The meetings advanced the progress on the regional energy trade, fostering the agreement on necessary steps to finish a transmission interconnection and allowing Armenians freely participate in Georgia’s competitive power market. Armenia’s power market

Georgia-Armenia Joint Working Group Meeting, Yerevan, September 2018

Workshop on Transitional Plan for the Protection of Vulnerable Customers - Ms. Tamar Jaliashvili, Mr. Daniel Potash, Mr. Nicholas Okreshidze, Mr. Gocha Shonia and Mr. Zaza Chikhradze

Task 1 Detail


liberalization was moving at a slower pace compared to Georgia. In the final year of the Program, the COVID outbreak and the war in Nagorno-Karabakh suspended the future progress.

The result of these meetings was greater clarity on technical matters on cross-border transmission operation, and potential cross-border market participation, with concomitant economic benefits. Some of the benefits of the Trans-Caucasus Grid will get re-established.

1.4 PUBLIC OUTREACH

DONOR AND PROGRAM COORDINATION MEETINGS

Donor coordination was vital because more than 10 international donors were active in energy sector interventions during the life of the Program. The Program kicked off the series of donor coordination meetings with an inception meeting upon the commencement of the Program, and then held Donor Coordination meetings approximately quarterly thereafter. Collaborating closely with donors, the Program ensured an influx of international experts to prepare the local energy sector stakeholders for a competitive and transparent energy market. The international experts helped decision-makers to reach the development goals and make Georgia’s energy more secure and resilient.

The last meeting of the Program was replaced by an online meeting and a summarizing video due to the global pandemic and imposed restrictions. The Program team, together with the guests, marked the end of the project, effective between 2017-2020, which aimed at supporting Georgia to become self-reliant and capable of leading its own development journeys towards the EU.

During the final event, the Program showed a video that summarized the achievements of the Program and support to the GoG to meet the commitments assigned under the EnCT and address the Energy Security challenges. With the focus on the diverse perspectives of stakeholders, the professional video took the viewers through the accomplishments attained by the Program in close collaboration with the key energy stakeholders and emphasized its contribution in terms of Georgia’s energy sector enhancement, which was acknowledged by all interviewees. The video triggered massive interest among the stakeholders, and hence upon their request was disseminated.

Georgia - Armenia Joint Working Group Meeting, Tbilisi, September 2019

https://youtu.be/i9LviLqTqrE

Task 1 Detail


The USAID Energy Program organized in total 12 donor and Program coordination meetings including with the market participants, the GoG, International Financial Institutions (IFIs), donors and other relevant parties, on all matters and especially to gain consensus on the Action and Transition Plans and the next steps for their implementation.

A catalog of meetings is presented below:

Meetings listing

1. Steering Committee Meeting March 15, 2018 Discussed topics: the Program’s presentation on Electricity Market Concept; Near-term Electricity Market Opening WG Action Plan; Feedback from Energy Community representatives on Electricity Market Road Map; Update on initial market opening plans and communication plan for market opening; Information on scopes of WGs. Decisions: the Program to finalize the draft Electricity Market Concept and planned activities, despite the market opening delay.

2. Electricity Market Development Working Group Meeting May 11, 2018 Discussed topics: transitional issues in the Georgian electricity market and various scenario options per issue. Decision: WG members agreed to provide written comments on Transitional Issues in the Georgian Electricity Market, prepared by the Program and agreed to participate in the following meeting.

3. Donor Coordination Meeting September 27, 2018 Discussed topics: Electricity and Natural Gas Action Plans and Support the GoG in the implementation of the project of PV systems in Off-Grid households in Mounting villages. The outcome: the parties acknowledged the importance of PV systems in remote areas and disseminated of Action Plans among the participants for further comments and recommendations.

4. Roundtable for Energy Reforms Action Plan February 25, 2019 Topics discussed: updated Electricity and Natural Gas Action Plans, based on the intensive consultation with stakeholders and suggestion to fill up the gaps. The outcome: the Action Plans were disseminated among the stakeholders, donors and interested parties; the MoESD expressed readiness to coordinate donors’ meetings to maintain competitiveness between them.

5. Donor Coordination Meeting April 1, 2019 Discussed topics: GSE corporatization / rehabilitation project; Protection of Vulnerable Customers and support schemes for RE. The outcome: continuation of started projects and definition of the donor companies’ roles (EU4Energy, French Development Agency (AFD), USAID Energy Program and World Bank (WB)) working on the topic of Vulnerable Customers.

6. Workshop on Transition Plan for Vulnerable Customers May 17, 2019 Discussed topics: Transitional Plan for the Protection of Vulnerable Customers developed by the Program and report on the Consumers Rights in the Energy Sector of Georgia by Public Defender. The

Graphic used in Donor Coordination Meeting, September 2019, Regarding Vulnerable Customers

Steering Committee Meeting, March 15, 2018

Task 1 Detail


outcome: engage the respective state institutions, donor organizations and interested parties in the development of an effective strategy in support of vulnerable customers.

7. Donor Coordination Meeting June 19, 2019 Discussed topics: progress update for ongoing projects by the MoESD; presentation on Transition Plan for Vulnerable Customers for electricity and natural gas sectors, overviewing existing social support policy in Georgia and EU practice, by the Program. The outcome: identifying gaps, and assistance in the following areas: the development of Communication Strategy and the Energy Strategy of Georgia and the Establishment of Energy Research Center.

8. Workshop on Proposed Law on Energy and Water Supply July 15-16, 2019 Discussed topics: the Program presented the RIA results on the new Energy Law. The outcome: the RIA results provided sound basis for facilitating the adoption of the Law on the Energy and Water Supply.

9. Donor Roundtable Meeting September 27, 2019 Discussed topics: situation analysis, EnCT objectives, Georgia’s energy sector SWOT analysis, gap analysis and capacity building action plan of Georgian electricity market participants and Gas and Electricity action plans. The outcome: attendees collectively supported the idea of pushing the GoG to enhance the achievement of goals.

10. Donor Coordination Meeting December 18, 2019 Discussed topics: summarizing presentation on the main activities of 2019 of the MoESD; Electricity Market Reform: Review of First Year Priority Actions provided by the Program and presentations of other Donor companies. The outcome: continue intensive cooperation with the donor companies to advance progress in the energy sector reform.

11. Donor Consultation Meeting May 15, 2020 Discussed topics: upgraded topic of vulnerable customers and efforts from donor companies (EU4Energy, AFD and European Bank for Reconstruction and Development (EBRD)) in the post COVID environment. The outcome: further collaboration with the stakeholders in addressing any specific issues that might be triggered as a result of the created conditions.

RIA Results presentation for the Parliamentarians of Georgia, July 15-16, 2019

Donor and Stakeholder Meeting, October 22, 2020

Task 1 Detail


12. Donor and Stakeholder Meeting October 22, 2020 Discussed topics: comparative overview of electricity and natural gas action plans by the Program, Energy Sector Reform process by the MoESD, Legislation Development by GNERC, development of intraday and day-ahead markets by GENEX and Market Monitoring Business process model and financial settlement by Crissy Godfrey. The outcome: common effort to accelerate the energy reform process.

MEDIA TOUR

In support of the GoG, to ensure the timely and effective public outreach in anticipation of changes in Georgia’s energy market, the USAID Energy Program organized a Media Tour to raise awareness of the anticipated changes among the media representatives and developed the following documents for the GoG:

1. Concept Note on Electricity Market Strategy, used by the GoG to design effective communication strategy and public outreach

2. Electricity Market Reform Communication Plan, used by the GoG as an overall framework for communication with the various target audiences in order to foster awareness and trigger behavioral change.

PRESS RELEASES

Throughout the life of the Program, the USAID Energy Program produced 15 Press Releases:

1. Open House

2. Launch of the Project

3. Women Empowerment Week

4. Renewable Energy Guidebook Transfer Ceremony

5. Bilateral OTC Energy Trading Training

6. Official Transfer Ceremony of USoA to GNERC

7. Media Tour in Gudauri

Aragvi HPP Power House Dariali HPP Derivation Tunnel

Media Tour – “Blue is Green” - Dariali HPP, Entrance to the Tunnel

Dariali HPP Derivation Tunnel

Task 1 Detail


8. Nepal Exchange Visit

9. VREST Summit

10. Public Utility Research Center (PURC) Training

11. OTC Matrix Trading Training simulation kick-off meeting at GNERC

12. Opening of the Training Sessions on the Competitive Over-The-Counter (OTC Power Market Trading Platform Simulations)

13. High-Level Visit to the Off-Grid Village of Zemo Nichbisi

14. Wind Power Forecasting Results Sharing Event at Gori Wind Farm

15. Energy Security Conference

To help private sector developers and planners, and policy-makers, the Program produced the Georgia Energy Map showing all pre-feasibility sites, completed or in-progress hydro power and non-hydropower plant sites, high voltage transmission and selected electricity distribution lines, oil and gas pipelines and other major energy sector infrastructure. The energy map was updated twice to show new pipelines, transmission lines, power projects.

The Program observed that since the development and construction period of power sector assets is relatively slow (2-5 years for development and 2-3 years for construction), as compared to a 3-year program, the annual update of the map consisted more of updating and refining the useful power statistical tables.

The updated Georgia’s Energy Map provides valuable information on potential power project sites and existing power plants, including locations of transmission lines and key substations. Also, it includes key natural gas infrastructure and oil transit pipelines. The updated information will aid energy sector stakeholders and potential investors to plan more efficiently by evaluating the potential sites and interconnection points in Georgia.

Energy Sector Map, Updated in October 2020

Task 1 Detail


1.5 ACTION PLAN AND TRANSITION PLAN IMPLEMENTATION

After close cooperation with the USAID, the Program, identified in the Action Plans and Transition Plans as indicated in Sub-Tasks 1.1 and 1.2 above, the Task Order required that the Program provide advisory services and support for drafting appropriate primary and secondary legislation as well as the associated rules and procedures for electricity and gas markets relevant institutions. This included advice and formulating drafts of primary and secondary legislation including laws, amendments to laws, rules, and regulations.

The adoption of the Law on the Energy and Water Supply in December 2019 was a watershed event in the energy market development in Georgia. It made a strong legal foundation (as compared with as GoG decree) of the matters in the EnCT. Prior to the adoption of the Law, the USAID Energy Program delivered technical assistance to the GoG and provided targeted comments to the draft Law on Energy and Water Supply, which have been incorporated in the final Law; the Program also Conducted RIAs of Proposed Energy Law on Electricity and Natural Gas Prices and RIA of Proposed Energy Law on Vulnerable Customers in Georgia; organized workshop for the parliamentarians and other interested parties in order to create awareness of the benefits of the draft Law and anticipated impact. The created platform triggered a positive attitude towards the draft Law which finally saw approval in the Parliament and signing by the President.

Though not identified in the Task Order, GNERC requested assistance in the development of the Natural Gas Uniform System of Accounts (USoA). Accordingly the Program engaged a highly specialized international consultant to accommodate GNERC’s request. GNERC Chairperson Ms. Irina Milorava said in several venues that the USoA serves as a critical input in terms of enhancing the approximation to the EU regulations.

In summary, the USAID Energy Program produced the following 20 Electricity Sector deliverables and 27 Natural Gas Sector deliverables:

Primary and Secondary Legislation in the Electricity Sector (20 Deliverables):

1. White Paper on Electricity Market Concept Design - Beneficiary: the GoG, aim: to describe the process for the electricity market reform towards the target model;

2. Comments on the Energy law – Beneficiary: the GoG, aim: provide recommendations for the main law on Energy to meet the EU Directives committed under EnC Treaty and Accession Protocol;

3. Comparative Analysis of the Developed Concepts for the New Electricity Market in Georgia - Beneficiary: the GoG, aim: to provide comparative analyses of the Electricity Market Concept Design developed by the Program in July 2018 and the Electricity Market Concept adopted by

Transfer of Uniform System of Accounts to GNERC May 2019, –Mr. Gagik Hovhannisyan, Mr. Peter Wiebler, Ms. Irina Milorava, Mr. Daniel Potash and Mr. Nicholas Okreshidze

Presentation on Law Adoption Procedure and Timeframe

Task 1 Detail


the MoESD, in December 2018;

4. High Voltage Connection Fee Methodology - Beneficiary: GNERC, aim: to establish a standardized approach to dealing with power network connections and associated connection charges for customers and producers;

5. Low Voltage Connection Fee Methodology - Beneficiary: GNERC. aim: to establish a standardized approach to dealing with power network connections and associated connection charges for customers and producers;

6. Draft Universal Service Supplier Tariff Methodology - Beneficiary: GNERC, aim: to create the Methodology for calculation of electricity tariffs from the Universal Service Supplier (USS) and calculating corresponding remuneration for the Service Provider for the electricity market in Georgia;

7. Electricity Market Operator Service tariff methodology - Beneficiary: GNERC. aim: to develop a Methodology for calculation of service tariffs from the Electricity Market Operator;

8. Outline on Third-party Open Access Report - Beneficiary: GNERC, aim: to create Non-discriminatory third-party access to transportation infrastructures in electricity - transmission and distribution networks – as an essential right for open and effective competition in wholesale and retail electricity markets;

9. Supplier of Last Resort Tariff Methodology - Beneficiary: GNERC, aim: to create the Methodology for calculation of electricity tariffs from the Supplier of Last Resort (SoLR) and calculating corresponding remuneration for the SoLR Provider for the electricity market in Georgia;

10. Market Monitoring (How to monitor Electricity Market Financial Settlements) - Beneficiary: GNERC, aim: to ensure effective markets and eliminate potential anticompetitive behavior by market participants, evaluating and identifying ineffective market rules and tariff provisions, and providing a comprehensive analysis and reporting;

11. Comments on Draft Law on Safety of Hydraulic Facilities - Beneficiary: the Georgian National Committee on Large Dams (GNCOLD) and the Parliament of Georgia, aim: to accelerate the adoption process of the law on the possible short-term conditions, due to its high importance to the energy sector development;

12. Comments on Energy Strategy of Georgia 2020-2030 - Beneficiary: the GoG, aim: to provide comments on the main directions of the state policy in the energy sector, set the key priorities in view of the principles of sustainable development;

13. Review of Electricity Market Design Concept - Beneficiary: GoG, aim: to overview and assess the Electricity Market Concept Design II adopted by the MoESD and identify gaps and challenges faced to the energy market of Georgia;

14. Memo on How to Handle Imbalance Costs for VRE Generators, Consensus Building amongst VRE Developers and GoG - Beneficiary: the GoG, GSE, RE Developers. Aim: to keep the reserves by the power system operator to maintain the balance of demanded/consumed electricity;

Memo on How to Handle Imbalance Costs for VRE

Generators

Task 1 Detail


15. White Paper on Electricity Bilateral Trading - Beneficiary: GENEX, aim: to focus on bilateral physical market in which a bilateral arrangement will result in an injection of electricity into the network and an extraction of electricity from the network;

16. Concept of Energy Policy - Beneficiary: GoG, aim: to form a long-term vision for the development of the energy sector, taking into account national needs and international cooperation commitments, and to define the main priorities for development;

17. Memo on How to implement Rooftop solar programs - Beneficiary: GNERC, aim: to provide principal elements to implementing a successful rooftop solar program to promote distributed solar while complementing the development of a competitive market design;

18. The Authorization Checklists for Variable Renewable Energy - Beneficiary: the MoESD, Public-Private Partnership Agency (PPP Agency), VRE developers, aim: The Authorization checklists are proposed to project developers seeking advice on vital information to apply for permits and licenses appropriate to their projects;

19. Reform delivery office recommendation to the GoG - Beneficiary: the GoG, aim: suggestion on Reform Delivery Office (RDO) to increase human capacity to reach the effective and timely completion of energy reform;

20. Diagnosis of Adopted Electricity Market Concept Design (EMCD III) - Beneficiary: the GoG, aim: to underline challenges of the MoESD in terms of the technologies required to support the necessary systems and processes, and the people in the market who will be operating and trading in the new environment.

Primary and Secondary Legislation in the Natural Gas Sector (27 Deliverables):

1. White Paper on the Natural Gas Market Concept Design - Beneficiary: the GoG, aim: to develop steps for the gas market concept to create a favorable environment for infrastructure development through various funding initiatives, deliver secure and affordable gas to all consumers of Georgia, and establish a competitive gas market;

2. Comments on the Natural Gas Market Concept Design - Beneficiary: the GoG. GOGC, GGTC, aim: to reveal deficiencies of the concept design, which should be adopted by the GoG in accordance with the law on the Energy and Water Supply of Georgia;

3. Transitory Natural Gas Market Rules for Georgia - Beneficiary: GNERC, aim: to describe organization and operation of the natural gas market in Georgia, regulate relations between market participants and final customers, determine commercial procedures for, sale and transmission of natural gas, and provide information to network users;

4. Natural Gas Storage for Georgia: Access Regime and Remuneration Services - Beneficiary: GOGC, aim: to tackle the highly seasonal natural gas consumption profile of Georgia; high

Report on White Paper on Electricity Bilateral Trading

Graphic “Natural Gas Target Model Structure” used in the Report on White Paper on the Natural Gas Market Concept Design

Task 1 Detail


dependence on a single supplier; and contracts flexibility to satisfy commercial needs, secure and uninterrupted supply of gas;

5. Natural Gas Market Operator Service Tariff Methodology - Beneficiary: GNERC, aim: to develop a methodology for setting service tariffs for Natural Gas Market Operator for the Natural Gas Market in Georgia, for the determination of Maximum Allowed Revenues that may be earned by the Natural Gas Market Operator in any relevant year of operation in order to allow it recover the reasonable costs of operating and maintaining the electricity market in accordance with the Law of Georgia on Energy;

6. Supplier of Last Resort Tariff Methodology for Gas - Beneficiary: GNERC, aim: to create the Methodology for the calculation of Natural Gas selling tariffs from the SoLR;

7. Natural Gas Transportation Connection Tariff Methodology - Beneficiary: GNERC, aim: to define the rules and principles for calculating the connection evaluation, connection installation, the disconnection / reconnection and connection termination tariffs for transportation;

8. Natural gas Distribution Connection Fee Methodology. Beneficiary: GNERC, aim: to define the rules and principles for calculating the connection evaluation, connection installation, the disconnection/reconnection and connection termination for a distribution company;

9. Natural Gas Market Rules for An Organized Market (DAM Rules) - Beneficiary: GNERC, aim: to develop necessary rules for establishing a competitive market as per EU legislation;

10. Concept and Principles General Accounting Policy and Procedures for Georgian Regulated Gas Sector Companies USoA;

11. Contribution and Grants Accounting Guidelines for Georgian Regulated Gas Market Companies USoA;

12. Lease Accounting Guidelines for Georgian Regulated Gas Market Companies USoA;

13. USoA, Accounting Guidelines for Georgian Gas Market Rate Regulated Companies;

14. Revenues, Cost Centers and Expenses Accounting Guidelines for Georgian Gas Market Companies USoA;

15. Current Asset Accounts 1000 – 1999 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

16. Property, Plant and Equipment (PP&E) Account 2100 – 2199 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

17. Accumulated Depreciation 2200 – 2299 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

18. Long Term Receivables, Long Term Investments, Intangible assets, Accumulated Amortization Accounts2300 – 2699 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies Accounts 2000 USoA;

19. ST & LT Liabilities, Equity, Operating Income Accounts 3000 – 6999 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

20. Cost of Products & Goods Sold, Sales Expenses Accounts7000-7399 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

21. General and Administrative Expenses Accounts7400-7499 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

22. Operating Expenses, Expenses and Expenditures on Non-Current Assets Accounts 7500-7999 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

23. Non-Operating Income and Expense 8000-9999 Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies USoA;

24. Instructions on USoA Reporting Forms;

25. Support on developing the Gas Ten Year Network Development Plan (TYNDP) - Beneficiary:

Task 1 Detail


GOGC, aim: to analyze the TYNDP 2019 -2028 for Georgia and offer recommendations for developing a comprehensive TYNDP concept in compliance with the EU recommendations;

26. Methodology on Economic Appraisal of Gas Investment Projects - Beneficiary: GNERC, GGTC, aim: to guide the GGTC in the appraisal of gas transmission projects prior to sending documentation for project approval to the GNERC;

27. Gap Analysis between Draft Energy Law and Grid Code for Gas Market Rules - Beneficiary: GNERC, Natural Gas TSO, aim: gap analyses outline the main Market Rules areas as outlined in the Draft Energy Law and the provisions within the Network Code.

Additionally, the USAID Energy Program conducted 27 trainings under Task 1, as follows:

1. Training on Calculation of Market Operator Service Fees. Aim: to ensure the timely implementation of the methodology for calculation of Market Operator service fee. The audience: GNERC;

2. Training on Electricity Connection Fee Methodology #1. Aim: to ensure the timely implementation of a methodology for calculation of the transmission and distribution network connection fees. The audience: GNERC;

3. Training on the Electricity Connection Fee Methodologies #2. Aim: to ensure the timely implementation of a methodology for calculation of the transmission and distribution network connection fees. The audience: GNERC;

4. Training on the Energy Trading Strategy: Aim: to create awareness of the energy trading strategy development. The audience: Georgian Renewable Energy Development Association (GREDA) management, owners of power plants, renewable energy project developers, Georgian Water and Power (GWP) and MoESD;

5. Training on the Importance of Strategic Communication. Aim: to create awareness of the importance of strategic communication in light of the opened electricity market, which obligates the MoESD and GNERC to ensure timely communication with households on the benefits of a competitive energy market. The audience: the MoESD, GNERC;

6. Training on the Gas Market Concept Design for Georgia. Aim: to create awareness of the Gas Market Concept Design outlined in the draft Energy Law; gas market structure; gas supply options in Georgia and market scenarios. The audience: GNERC;

7. Training on the Development of the Gas Storage Regulation Scenarios. Aim: to create awareness of the Gas Storage regulation scenario and values, the experience of Bulgaria regarding the underground gas storage regulation and its impact on market transactions. The audience: GNERC;

Seminar on “Electricity Market Reform Communication Plan”, January 17, 2020

Seminar on “Electricity Market Reform Communication Plan”, January 24, 2020

Task 1 Detail


8. Training on Electricity Connection Fee Methodology #3. Aim: to ensure the timely implementation of a methodology for calculation of the transmission and distribution network connection fees. The audience: GNERC;

9. CYPRESS Maturity Model Benchmarking Workshop / Training. Aim: 2-day Benchmarking workshop captured the current behavioral capacity of the company and identified the required actions to meet the new market requirements of the EU. The audience: GGTC representatives;

10. Training on Electricity Supplier of Last Resort Tariff Methodology. Aim: to ensure the timely implementation of the methodology for calculation of Supplier of Last Resort service fee. The audience: GNERC;

11. Training on Electricity Universal Service Supplier Tariff Methodology. Aim: to ensure the timely implementation of the methodology for Universal Service Supplier service fee. The audience: GNERC;

12. Training on Market Operator Tariff Methodology. Aim: to ensure the timely implementation of the methodology for calculation of Market Operator service fee. The audience: GNERC;

13. Training on Third-Party Open Access. Aim: to ensure the timely implementation of the third-party access rules and procedures according to the requirements of the draft new legislation in Georgia in order to facilitate the administration and operation of the electricity market. The audience: GNERC;

14. Bilateral Over-the Counter Energy Trading Training. Aim: to create awareness of OTC contract, OTC versus Exchange, energy broker, and examples of the OTC Energy and what is OTC clearing. The audience: GREDA management, owners of power plants, renewable energy project developers, GWP and MoESD;

15. Training on The Energy Market Trading & Risk Management for The Energy Sector Stakeholders (Three Days Training). Aim of the advanced course: to create awareness of the processes and technology of energy trading, including modeling energy trades with varied outcomes. The audience: GNERC, GOGC, EPG, GIG, GWP, MoESD, World Experience for Georgia (WEG), State Oil Company of Azerbaijan Republic (SOCAR);

16. Training on Natural Gas Market Trading. Aim: to create awareness of the spot market, balancing and physical markets. The audience: GGTC, GOGC;

CYPRESS Maturity Model Benchmarking Workshop / Training, July 2018

Training on Electricity Universal Service Supplier Tariff Methodology, January 2019

Task 1 Detail


17. The Market Monitoring Training Sessions I-II. Aim: to enhance the state of GNERC and boost capacity to monitor Georgia’s new anticipated transparent and competitive market model. The audience: GNERC, GENEX, GSE;

18. The Market Monitoring Training Sessions - III (Final). Aim: to create awareness of the Day Ahead, Intra Day and Balancing market monitoring topic including economic and physical withholding and the market monitoring reporting. The audience: GNERC, GENEX, GSE;

19. Training on USoA For Gas Companies (three-day training). Aim: to create awareness of the "Introduction of the Uniform System of Accounts (USoA) for the Gas Regulated Sector" - Revenue, Cost & Expenses, Grands & Contribution. The audience: GNERC;

20. Training on Demo OTC Trading Platform (Simulation). Aim: to create awareness of the basic concepts of markets, supply and demand;

21. Introductory Training on Demo OTC Trading Platform. Aim: to create awareness of the trading system and its application;

22. Training on DAM Testing Regime Simulation. Aim: to create awareness of how to trade energy supply or energy demand, and particularly how OTC trading would interact with other markets: day-ahead market, intraday market, and balancing market;

23. OTC Trading Training Sessions #1. Aim: to create awareness of trading for profit, or minimizing loss, under projected market scenarios, maintaining a balanced book;

The Market Monitoring Training Sessions I, September 15, 2020 The Market Monitoring Training Sessions II, September 16, 2020

The Launch Ceremony of the Training Sessions on a Competitive OTC Power Market Trading Platform Simulation – Dr. Ivane Pirveli, Mr. Davit Narmania and Mr. David Hoffman, September 2020

Training on Uniform System of Accounts (USoA) for Gas Companies (three-day training)

Task 1 Detail


24. OTC Trading Training Session #2. Aim: market simulation with more simulated disruptive events under which participants had to manage - heatwave, plant outage, etc.;

25. OTC Trading Training Simulation Sessions #3. Aim: simulation with more external market events affecting supply and demand, and more focusing on profitability and minimizing teams that had out-of-balance portfolios;

26. The final OTC and Day-Ahead Trading Session #4. Aim: wrapped-up training. Some progress was on greater conceptual mastery, but a significant amount of progress was due to getting used to the routine mechanical operations;

27. Training on OTC Broker. Aim: to create awareness of trading for correct balance of risk and return, other responsibilities such as compliance, collateral, and reporting.

Training on the “Bilateral OTC Energy Trading”, March 26-28, 2019 and Training on the “Energy Market Trading and Risk Management”, February 4-6, 2020

Task 2 Detail


VI. TASK 2 DETAIL USAID Energy Program approached institutional strengthening and capacity building in the energy sector with a deep and practical approach, and as a result attracted significant enthusiasm and participation from GoG professionals and other stakeholders. “Deep and practical” means that the Program fielded subject matter experts with hands-on experience in the issues faced now by Georgian policy-makers and professional staff. In a 3-year program, of course it was not possible to provide, for example, post-graduate level education, but also it was not useful to too lightly touch on topics at a high level. Therefore the Program offered a series of trainings with multiple sessions, learning checks, classroom hands-on exercises, and certifications. The subject matter experts which were fielded aligned with the challenges and objectives in the other Tasks, viz., competitive energy markets, variable renewable energy, and energy security.

The Program reinforced learning by linking material conveyed in classroom exercises with information gained in study tours, workshops, and guidebooks. Also the Program offered a variety of examples from different countries: countries recently going through the harmonization process, countries very far along the reform continuum, and countries with different approaches to support schemes. While “best practices” were offered, the Program sought to offer tools and methodologies to develop Georgian solutions and approaches to Georgian issues and goals in the energy sector.

2.1 REGULATORY IMPACT ANALYSIS TOOLS

Regulatory Impact Assessment is globally an increasingly important tool for making good new regulations and for unwinding excessive or poorly-working regulation. All countries in Europe now require a RIA prior to enacting new major legislation. Hence, in order to uprate Georgian professionals’ skills and understanding of RIA with respect to the energy sector, the Program launched trainings and capacity building. Importantly the Program subcontracted most of the RIA production to local consulting firms and NGOs.

CONDUCTED 19 RIA TRAININGS

The USAID Energy Program outstripped the contractual obligation of 15 RIA trainings by delivering 19 RIA trainings for the following selected institutions: MoESD, the Parliament of Georgia, GNERC, ESCO, GSE, GENEX, GGTC, Georgian Oil and GOGC, State Agency of Oil and Gas (SAOG), ISET, Association of Young Professionals in Energy of Georgia (AYPEG), Energy Ombudsman, WEG, EU4Energy, Energy Academy and Georgian Technical University.

RIA Training on New Draft Law on Energy and Market Opening on Vulnerable Customer, September 2019

Pre-RIA training for the MoESD, October 19, 2018

Energy RIA Training for the MoESD, October 22, 2018 RIA training on analyzing the links among the new Draft Law on Energy of Georgian, Market Opening and Vulnerable Customers, October 24, 2018

Task 2 Detail


The Program placed a strong emphasis on in-depth capacity building to advance the development of the Regulatory Impact Analysis discipline essential for evaluating the potential impact of proposed new laws and regulations. The Program supported an evidence-based approach under the new Law to facilitate compliance with new requirements of Georgian Law on Normative Acts and equip various energy institutions with essential technical skills to independently perform RIAs that will foster more supportive policy, legal, and regulatory environments.

For the RIA topic alone, the Program conducted the following trainings:

1. Pre - RIA Training; 2. Energy RIA Training; 3. Assessing the Influence of a New Draft Law on Energy and Market Opening on Vulnerable

Customer; 4. RIA Training – a general review; 5. Six Weeks Regulatory Impact Assessment Training by PURC on the basics of conducting RIA; 6. Introduction to Regulatory Impact Assessment; 7. Georgian Legal Framework of RIA; 8. Setting Up and Implementing the Stakeholder Consultation Framework; 9. Problem Definition in RIA; 10. Defining the Baseline Scenario; 11. Setting Policy Objectives and Selecting Policy Options; 12. Identification of The Impacts and Analysis Required for A Standard RIA; 13. Identification of Social and Environmental Impacts in The Energy Sector; 14. Comparing Options with Multi-Criteria Analysis; 15. Quantitative Impact Assessment; 16. Financial Analysis; 17. Monitoring and Evaluation; 18. Impact Evaluation in Practice; 19. Concluding RIA Session.

Across all of the trainings, the USAID Energy Program applied the full range of RIA methodologies to harness the most resourceful ideas available in RIA practice that captured both process and outcomes of RIA methods.

To ensure the sustainability of the system, the USAID Energy Program leveraged the local expertise by subcontracting International School of Economics at Tbilisi State University (ISET), which has conducted many RIA trainings, undertook RIA studies and was offered additional RIA trainings by PURC. This was a targeted intervention to enhance the performance of local actor which will be responsible for providing on-going training to the GoG in energy analysis while conducting independent analysis available for public consumption / discussion.

More than 50 people had some RIA and 19 got advanced training. Still, however, one of the requirements of the Task Order was to establish a sustainable platform to carry out such RIA training

Award Ceremony for the Graduates of PURC RIA Training

Task 2 Detail


long after the Program completes. Accordingly ISET delivered a Business Plan for a Sustainable System, which explained the strategy for the development and delivery of certified professional development courses for individuals aspiring to become RIA analysts / experts and/or RIA trainers.

DEVELOPED SUSTAINABILITY OF THE SYSTEM

To ensure the sustainability of RIA training after the completion of the Program, the Program leveraged the local expertise by subcontracting ISET for RIA production and for RIA trainings.

Also the Program offered additional RIA trainings by the famous Public Utilities Research Center at University of Florida. PURC is a global leader in utilities and regulation, which has long attracted executive and policy-makers from emerging market countries. PURC developed a new on line training course for RIA which the Program availed. This was a targeted intervention to enhance the performance of local actor which will be responsible for providing on-going training to the GoG in energy ana lysis while conducting independent analysis available for public consumption / discussion.

ISET’s RIA business plan (shown on the left) explains the strategy for development and certification of individuals aspiring to become RIA analysts / experts and/or RIA trainers.

ADMINISTERED 12 RIAS

The USAID Energy Program finished 12 RIAs in priority areas of interest of the GoG, as prescribed in the Task Order. The RIA results have already contributed and will continue to foster the development of meaningful legislative strategies through improved legal and regulatory framework and increased resilience in the energy sector. For example the RIA on Support Schemes, which covered Feed-in Premiums, helped inform the GoG order on Feed-in Premiums made in August 2019.

To help the long-term sustainability of RIA expertise on the local environment, the Program subcontracted with five Georgian companies (ISET, AYPEG, Policy and Management Consulting Group (PMCG), PMO, WEG and the GREDA to accomplish 8 RIAs. USAID Energy Policy staff developed the other four RIA out of 12 RIAs. This local contracting was targeted to enhance the performance of local actors in achieving and sustaining demonstrable results that would alleviate the energy leadership, foster capabilities and mobilize resources across the competitive energy market. The Program administered in total the following RIAs:

1. RIA of Proposed New Energy Law on Electricity Prices. The study facilitated the adoption of the Law on Energy and Water Supply of Georgia by evaluating the impact of the draft Law on the electricity prices.

RIA Training by ISET on Impact Quantification

Business Plan Developed by ISET

Task 2 Detail


2. RIA of Proposed New Energy Law on Natural Gas Prices. The study facilitated the adoption of the Law on Energy and Water Supply of Georgia by evaluating the impact of the draft Law on the natural gas prices.

3. RIA of a New Energy Law Effect on Vulnerable Consumers. The study examines the effects of expected market reform following the adoption of the new Energy Law, as well as the effect of a potential increase in energy tariffs on vulnerable customers.

4. RIA on Managing Backlogs of PPA and MoU Signed by The GoG. The study addresses the potential causes behind the existing backlog for PPAs and reveals how the situation could potentially worsen in absence of new Governmental interventions.

5. RIA on The Standards for Community Engagement for New Development Projects. The document describes the importance of meaningful engagement with the parties affected by the energy projects or innovations in the energy sector to minimize the resistance and consequent delays of respective projects’ implementation.

6. RIA on Choosing New Power Projects for Energy Security or Interconnection”. The study elaborates on how to choose new power projects for energy security and sovereignty, including general impact analyses from economic, environmental, and social points of view.

7. RIA on Opportunities in Unbundling the Gas Sector. The study offers the evaluation of Unbundling options for both, transmission and distribution systems of Georgia, which will be essential under the new Energy Law.

8. RIA on The National Energy Strategy. The study evaluates the effective and optimal ways for developing the strategic planning of the country's energy sector, as well as an in-depth energy policy and relevant strategies, in order to identify the existing barriers and offer decision-makers possible measures for overcoming them.

9. RIA on Support Mechanism for Renewable Energy Activity. The study explores four policy options of support schemes for Renewable Energy Sources (RES), including the mechanism of green certificates for facilitating investment in renewable energy sources.

10. RIA on The Local Content Requirement (LCR). The study reveals the Optional LCR as the best alternative for Georgia, which can boost the development of Variable Renewable Energy Sources VRES.

11. RIA on High Mountainous Region Designation of Energy Development and Access. The study examines different policy options to help the Government solve the challenge in mountainous regions with no access to natural gas. Various alternative energy sources are suggested for Households (HH), alongside various support schemes.

12. RIA on Time of Use (ToU) Pricing for Households, Businesses and Industry. The study evaluates the costs and benefits of the ToU tariff scheme for household and commercial customers under Mandatory and Voluntary policy alternatives as well as captures

With this effort, the Program fostered evidence-based to support sustainable development and help Georgia align incentives around the goals of greater self-reliance. The results of each rendered RIA

Report - RIA on Time of Use Pricing for Households, Businesses and Industry

Graphic “Electricity Market Structure under New Energy Law” used in the report on “RIA of

Proposed New Energy Law on Electricity Prices”

Task 2 Detail


will support the GoG in transforming the suggested theoretical concepts of a competitive energy market into practical adoption in line with appropriate international leading practices. With the targeted intervention, the Program built the capacity of the GoG and the energy institutions to analyze the impact of the new laws and regulations. Improving the legal and regulatory environment and increasing resilience of the energy supply will help Georgia to achieve broad-based, resilient economic development as a means to sustain its democracy.

2.2 CAPACITY BUILDING

Capacity building emerged as a sought-after offering, with almost all offering being oversubscribed. Georgians were eager to learn new skills and especially to gain the perspective from EU and US energy sector analysts and policy-makers. Capacity building consisted of Trainings and Study Tours, which worked together to reinforce learning.

CONDUCTED 37 VARIOUS TRAININGS

Throughout the life of the project, the USAID Energy Program outstripped the contractual obligation and delivered 37 trainings for the following selected institutions and organizations: the MoESD, GEDF, the Parliament of Georgia, GNERC, ESCO, GSE, GGTC, GOGC, SAOG, AYPEG, Energy Ombudsman, WEG, GWP, Infinite Energy LLC, Georgian International Energy Corporation (GIEC), Georgian Industrial Group (GIG), Sun House LTD, Green Energy, LTD Maksania 2014, Engurhesi LTD, Cerberusfrontier, SilkRoad Energy Bakhvi Hydro Power, Energo-pro, Energo-Pro Georgia (EPG), ADB, Eastern Power Corporation, Georgian Global Utilities (GGU), Gas Trading Company, Energo Aragvi Ltd, Telasi, Galt and Taggart, GREDA, TV Imedi, M2B, Prime Time, First Channel, Studio Monitor, Maestro, Radio Freedom, Georgia Today and Komersanti, Ilia State University, AGL Shuakhevi, Shekvetili HPP, SOCAR, Parvus Group, Georgian Renewable Power Company (GRPC), GEG, Phasizi Energy, Enterprize Georgia, Algroup.

Table 1: Total Trainings Facilitated

Task Task Name Trainings

1 Energy Market Development 27

2 Institutional Strengthening and Capacity Building 3

3 Energy Investment Optimization 4

Training on Tariff Methodology, October 2019 Training on Connection into the Grid New VRE Generation, June 2019

Training on the Financing of VRE and PPP in VRE, September 2018 Training on USoA, March 2019

Task 2 Detail


Task Task Name Trainings

4 Grid Integration of VRE 3

5 Strategic Advisory Assistance to the GoG to Increase Energy Security 0

TOTAL 37

FACILITATED 8 STUDY TOURS

Though the life of the project, the USAID Energy Program exceeded the target of six study tours by conducting eight international study tours. These study tours were specifically tailored to provide Georgian energy sector stakeholders the opportunity to familiarize with the leading international practices in the area of their immediate interest, exchange views with their European and American colleagues and hear advice from regulators and the industry experts. Among the participants were the representatives from the key Georgian institutions operating in the energy sector: the MoESD, GEDF, GSE, GGTC, GOGC, SAOG, GNERC, and Georgian Gas Storage Company (GGSC).

1. Study Tour to the United States, to create awareness on energy security, dam safety, and power sector planning.

2. Study Tour to Romania (Electricity) to create awareness on the requirements for the EU alignment, wind power integration and competitive power market

3. Study Tour to Romania (Gas) to create awareness on the natural gas value chain, production of natural gas, its transportation and power generation.

4. Study Tour to Lithuania, to create awareness on the applied standards, and transition from the Soviet standards to new regulations

5. Study Tour to Austria, to create awareness on the functioning of a competitive gas market 6. Study Tour to the Netherlands, to create awareness on the undersea power transmission

cables, anticipating Georgia linking to Romania by power cable underneath the Black Sea 7. Study Tour to the Czech Republic, to create awareness on the electricity distribution and power

trading. 8. Study Tour to California, to create awareness on the competitive power markets, new power

technology and new business models, how to increase resiliency

Georgian group visited Grand Coulee Dam to explore the massive concrete facility that harnesses the power of the Columbia River and learn about the best practices at Grand Coulee

Study tour to Deloitte’s San Francisco office, where the group met with Andrew Byrnes, Director, Venture Capital Artificial Intelligence, Micron Technology, Inc., respectively dedicated to renewable energy start-up financing and to the overall investment process

Study tour to the Fântânele-Cogealac wind farm, which is the largest onshore wind farm in Romania and in Europe - Mr. Zaal Gergaia, Head of Trade Organization and Electricity Market Development, ESCO, September 2018

GGTC personnel visited Vilnius metering and regulation station operated by Lithuanian TSO Amber Grid. Parties discussed critical gas infrastructure, SCADA system, information sharing and operational issues. Study tour in Lithuania (Gas), December 2018

Georgian delegation visited dispatch room of TRANSGAZ, where the company’s representatives explained SCADA system, information exchange, linepack regulation, metering data, etc. Study tour in Romania (Gas), November 2018

Task 3 Detail


VII. TASK 3 DETAIL

While Task 1 and Task 2 were primarily oriented to the government, Task 3 was oriented to both the government and to the private sector. The USAID Energy Program Task Order outlined support for the GoG in the appraisal and implementation of procedures designed to improve the investment climate for new electricity generation. The Task Order outlined support to Private Sector developers and investors to make projects ready and eligible for financing. Through working with the GoG and with private sector developers, the Program identified measures that government stakeholders can take to advance the enabling environment for new electricity generation. And the Program identified measures and approaches that private sector developers and investors can take to comply with government frameworks to improve their projects’ financing readiness.

3.1 INVESTOR ADVISORY GROUP MEETINGS

INITIATED THE IAG

During Year 1, the USAID Energy Program initiated the establishment of the Investor Advisory Group (IAG) under the MoESD. Throughout the life of the project, the IAG was actively engaged in the regular quarterly meetings. The events brought together the Georgian energy sector stakeholders, renewable energy developers, donors, and financial organizations to debate the existing challenges of VRE project development in Georgia.

CONDUCTED 12 INVESTOR ADVISORY GROUP (IAG) MEETINGS

Overall, the Program conducted 12 IAG meetings aimed at forging discussions to unlock the key inhibiting factors for new projects in the energy sector. One of twelve meetings turned into a two-day event titled “Variable Renewable Energy Summit Tbilisi” (VREST). The event hosted up to 200 participants, more than 10 financial institutions, renewable Energy equipment vendors (including GE, Vestas and First Solar), renewable energy investors and developers.

Below is the complete list of IAG meetings held within the frame of the Program:

1. Investor Advisory Group Meeting - May 29, 2018, on Renewable Energy Support Schemes highlighted the value of non-hydro renewable energy development to respond to challenges of a new energy market needs in terms of optimal utilization and support mechanisms for the development of renewable energy resources. Discussed topics: the trend of increasing electricity consumption in Georgia; the potential of renewable energy resources of the country; support mechanism for developing renewable energy; types of incentives mechanisms and the leading international practices. The audience: electricity sector stakeholders, renewable energy investors, GREDA and the MoESD.

2. Investor Advisory Group Meeting - July 9, 2018, on Renewable Energy Support Schemes offered a presentation on Renewable Energy Support Mechanisms. The audience: the MoESD, GNERC and Consortium of Danish Company (NIRAS). The parties agreed on introducing the supporting schemes to developers and/or investors.

3. Investor Advisory Group Meeting - September 6, 2018. Discussed topics: the importance of various incentive mechanisms for renewable energy which is pivotal under the assigned commitment of Georgia to meet the target by 30% of renewable energy in mixed energy balance for 2020; international experience in net metering, the EU policy and net metering technology and challenges / solutions for VRE grid integration and innovative approaches;

The IAG Concerning the Support Mechanisms and Local Content Requirements at MoESD on February 13, 2019 - Mr. Valeriy Vlatchkov, Mr. Daniel Potash, Mr.

Nicholas Okreshidze, Mr. Giorgi Chikovani, Mr. Ivane Pirveli and Mr. Levan

Vepkhvadze.

Task 3 Detail


recent global trends of renewable energy pricing and financing structures.

4. Investor Advisory Group Meeting - Sept 14, 2018, on Financing of VRE and PPP in VRE. The Program Chief of Party (CoP) Mr. Daniel Potash and Senior Renewable Energy Expert Mr. Ankit Patel elaborated on the following topics: standard project structure of PPA and Contract for Difference (CfD) supported with the examples of international practice, steps incorporated in project financing and risks associated with various steps including mitigation measures. The audience: GEDF, GSE, ESCO, Infinity Energy, GIG, GNERC, Sun House Ltd, Green Energy and New Technology center.

5. Investor Advisory Group Meeting - December 28, 2018. Discussed topics: the new Law of Georgia on PPP and related secondary legislation; Demand of Local Component, as a Possible Precondition for Promoting Renewable Energy Sources in Georgia; and survey of the participants on Renewable Energy Support Schemes. The audience: the MoESD, GEDF, GSE, ESCO, GNERC.

6. Investor Advisory Group Meeting - February 13, 2019, on the Local Content Requirement in Georgia as a Possible Prerequisite for the RES’s State Support”; the ‘Investors Opinion” and Survey Results on Renewable Energy Support Schemes; and the financial, fiscal and economic issues for VRE. The audience: the MoESD, GEDF, GSE, ESCO, GNERC.

7. Investor Advisory Group Meeting - April 19, 2019. Discussed topics: the existing

challenges in the transposition of “EU Network Code on Establishing a Network Code on Requirements for Grid Connection” in Georgia; Renewable Energy integration into the Georgian system and the Guidebook for VRE projects development.

8. Investor Advisory Group Meeting - September 12, 2019. on the Renewable Energy Investors Guidebook and Pricing to Support the Development of the VRE in Georgia. In support of the MoESD, PPP Agency and GEDF.

Program’s Expert Panel – Ms. Ana Jejelava, Ms. Tamar Jaliashvili, Ms. Nino Gvazava and Ms. Tamar Murtskhvaladze

Ms. Natalia Motsonelidze, Acting Chairperson at PPP Agency of Georgia - Investor Advisory Group Meeting - September 12, 2019

Mr. Giorgi Chikovani, GEDF CEO and Dr. Ivane Pirveli, USAID Energy Program DCoP, at MoESD, on IAG Meeting, December 28, 2018

Task 3 Detail


9. Investor Advisory Group Meeting on VREST - Nov 25, 26, 2019

“Variable Renewable Energy Summit Tbilisi” (VREST), 2 days event brought together the Georgian Government officials, more than 10 international financial institutions, leading renewable energy equipment vendors, including GE, Vestas and First Solar, local and international developers / investors, donors, energy sector stakeholders, CSOs and academia to share their respective views and forge discussions on the opportunities and the existing challenges of wind and solar energy development in Georgia. An essential part of the forum included networking among the interested parties. The Developers took a chance to present and promote their ongoing wind and solar projects.

10. Investor Advisory Group Meeting, March 6, 2020. Discussed topics: the potential advancement of the Net Metering regulation; 1 000 Solar Roof Initiative - offering additional support to the expansion of Micro Generation Development in Georgia; the U.S. best practices on net metering regulations, relevant program implementation, and financing; and U.S. vast experience in the solar roof projects - “One million solar roofs in California: lessons learned for Georgia” and experience of California.

11. Investor Advisory Group Meeting, Zoom Webinar - June 10, 2020. on the VRE financing. Discussed topics: the results of the study on “Identification of Financial Sources for Variable Renewable Energy Projects in Georgia. In addition, the Vice Precedent of the Starwood Energy Group Global LLC in the US. Ms. Lela Jgerenaia shared the US experience of the renewable market landscape that can serve as a valuable lesson for Georgia in terms of adopting the new practices.

12. Investor Advisory Group Meeting, Zoom Webinar- September 30, 2020. Discussed topics: Georgia’s Investment Climate for

“Variable Renewable Energy Summit Tbilisi” – Mr. Nicholas Okreshidze, Mr. Davit Sharikadze, Mr. David Hoffman, Mr. Davit

Narmania, Mr. Ucha Uchaneishvili, Mr. Mikheil Tavberidze

“Variable Renewable Energy Summit Tbilisi” November 25 and 26, 2019

Ms. Lela Jgerenaia, Vice President at Starwood Energy Group Global LLC, New York, and former analyst at previous USAID program in Georgia.

Task 3 Detail


Renewable Energy: A 3-Year Retrospective; draft Corporate Guaranteed Power Purchase Agreement Standard; and the Authorization Checklists for VRE Projects.

During the life of the project, the USAID Energy Program assisted the GoG in drafting secondary legislation, clear and transparent rules and regulations, administrative and licensing procedures, and simplified permitting requirements to expedite approvals from the multiple institutions involved in energy project development.

ASSISTED ADMINISTRATIVE AND LICENSING PROCEDURES

The Program assisted the GoG in administrative and licensing procedures designed for signing the MoUs and acquiring the power generation site development rights by the investors. The Program wrote a report “Report on Administrative and Licensing Procedures Developed for Signing the MoUs.”

PROPOSED INFRASTRUCTURE PERMITTING RULES

The USAID Energy Program proposed revised power generation infrastructure construction permitting rules. On that note, the Program developed the Report on Recommendations on Power Generation Infrastructure Construction Permitting Rules.

NEW ENERGY GENERATION QUEUING TRAININGS

Throughout the life of the project, the USAID Energy Program conducted four in-country trainings aimed at creating awareness on the evaluation and development of quotas and methodologies for “queuing” new energy generation projects.

The trainings aimed at targeted capacity building for transmission and distribution system operators in the process of obtaining the grid access.

In Year 2, International VRE Integration Expert, Senior Regulatory Advisor, former Commissioner at Energy and Water Regulatory Commission (SEWRC) of Bulgaria Mr. Valeriy Vlatchkov offered 2 Queuing trainings to share the international expertise and discussed the existing challenges of VRE grid integration with the key energy stakeholders.

1. Queuing on Workshop on VRE integration into the Grid - May 22, 2019

The analysis focused on the General Rules and Procedures for Connection to the Transmission Network; Recommendations for TSO in the process of grid access of new VRE generation; Best Approaches of Grid Connection; Development of VRE projects in compliance with Environmental Legislation.

2. Queuing Training on Improving Renewable Energy quota system and methodologies for connection into the Grid of VRE Generation - June 26, 2019

Georgian electricity sector stakeholders, the representatives of GSE, GNERC and renewable energy developers discussed the challenges of connection methodologies into the grid new VRE Generation. The training aimed at advancing the skills of regulators to evaluate and develop quotas and methodologies for connection into the grid new VRE generation.

Queuing Training at MoESD, May 5, 2019

Task 3 Detail


In Year 3, International Energy Expert, Lead Technical Consultant, Energy Policy and Solution Specialist, Renewable Energy and Storage Resource's Integration, Principal at Pacific Gas and Electric Company of California, Mr. Nivad Navid administered training for the local energy stakeholders. Discussed topics: the emerging changes in planning power transmission systems, challenges in system planning and operation, renewables resource impacts, new technology Impacts, a sample of generation queuing process – steps and outcome and corresponding case studies from US Independent System Operators (ISOs).

1. Training on Queuing New Energy Generation Projects for Transmission System Operator (TSO) - July 21, 2020. The event aimed at addressing the skills gap in evaluating / developing quotas and methodologies for “queuing” new energy generation projects and advancing the capability of transmission system operators in the process for grid access. The audience: Georgian energy sector stakeholders, the MoESD, GNERC and GSE.

2. Training on Queuing New Energy Generation Projects for Distribution System Operator (DSO) - July 30, 2020. The event aimed at creating knowledge on queuing methodology at the distribution level. Discussed topics: emerging changes in planning power transmission systems, challenges in system planning and operation, renewables resource impacts, new technology Impacts, a sample of generation queuing process – steps and outcome, corresponding case studies from US ISOs etc. The audience: EPG, Telasi, GNERC, and the MoESD.

PPAS AND ICAS

The Program also provided one power purchase standard agreement and an updated interconnection agreement contract (Agreement on Grid Interconnection Standards for Generation Distribution Companies).

1. Agreement on Grid Interconnection for Generation and Distribution Companies The document is intended to assist the GoG and key energy stakeholders to improve investment climate through the creation of a stable, clear, and non-discriminatory legal basis for generation and distribution companies. The draft includes general provisions, rights and obligations of parties, connection procedures, metering and billing, operational requirements and other procedures in accordance with the effective Georgian legislation and the leading international practices.

2. Corporate Guaranteed Power Purchase Agreement The document is intended to support the GoG and the key energy stakeholders, in the development of a PPA consistent with an attractive investment climate through a stable, clear, and non-discriminatory legal basis in place. The impact of the Corporate Power Purchase Agreement (CPPA) standard is the formation of standards that create a known and reliable framework, acceptable to international investors, and for scaling of cost-effective renewable energy generation.

3.2 RENEWABLE ENERGY SUPPORT SCHEME

The Program helped the MoESD in developing a support scheme designed to create investment opportunities in renewable energy which would, inter alia, promote the development of energy generation from diversified indigenous resources.

Training for Local Energy Stakeholders Conducted by Mr. Nivad Navid, July 21, 2020

Task 3 Detail


COMPARATIVE ANALYSIS OF SUPPORT SCHEMES

To establish a workable support scheme for Georgia, the USAID Energy Program first surveyed and rendered a comparative analysis of renewable energy support schemes in the developed countries and transition economies with the focus on the benefits and drawbacks of the support schemes in terms of consumer pricing and renewable energy penetration. The Program developed two reports:

1. Report on Renewable Energy Support Scheme Aims to incentivize the development of non-hydro renewable projects and respond to challenges of a new energy market.

2. International Best Practices on Support for Renewable Energy Support Schemes Offers the diverse examples and practices of different countries, also incorporates the worldwide applied incentives and their impact on the adoption of support mechanisms.

SUPPORT SCHEME RECOMMENDATIONS

The USAID Energy Program recommended a suitable renewable energy support scheme for Georgia, based on the above analysis and in view of the local energy sectors’ capacity to implement the scheme. The Program held two meetings with the stakeholders on this topic: the first meeting aimed to solicit stakeholders input and the second meeting to present the recommended renewable energy support schemes for Georgia. Besides those meetings and reports, the Program contracted a local firm to produce a RIA on support schemes.

The consultative engagements and RIA on support schemes rendered were:

1. Training Meeting on Renewable Energy Support Scheme - May 29, 2018 The training emphasized several significant aspects such as the importance of non-hydro renewable energy development to address the challenges of a new energy market, the need of its optimal utilization and the value of support mechanisms for the development of renewable energy resources. Discussed topics: the trend of increasing electricity consumption in Georgia; the potential of renewable energy resources of the country; support mechanism for developing renewable energy; types of incentives mechanisms and the best international practices. The audience: the MoESD, GNERC, GEDF and NIRAS.

2. Working Group Meeting on Renewable Energy Support Schemes - July 9, 2018 The Program consultants presented the Renewable Energy Support Mechanisms to the representatives of the MoESD, GNERC and NIRAS. The parties agreed on introducing the supporting schemes to developers and/or investors and continue further cooperation on the subject.

3. RIA Workshop on Renewable Energy Support Schemes – December 11, 2019 The Program administered RIA on Support Mechanism for Renewable Energy Activity. The study explored four policy options of support schemes for RES, including the mechanism of green certificates for facilitating investment in renewable energy sources.

Discussions on Renewable Energy Support Mechanisms with representatives of MoESD, GNERC, GEDF and NIRAS at MoESD, May 28, 2018

RIA Workshop on Renewable Energy Support Schemes – December 11, 2019

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SUPPORT SCHEME TECHNICAL ASSISTANCE OUTLINE

The Program developed two reports to design, plan, and implement the technical assistance to the MoESD and/or GNERC for the chosen scheme.

1. Survey Results and Consensus on Selected Support Schemes for Renewable Energy To select the top support mechanisms, the USAID Energy Program surveyed renewable energy developers and other energy stakeholders to reveal the most effective potential support mechanism from the investors’ perspective. The survey identified the utmost critical incentives from the developers’ viewpoint.

2. Report on Recommendation on Renewable Energy Support Schemes The Program analyzed the incentive mechanisms and provided respective recommendations. The paper described the various renewable energy support mechanisms, complemented with the justification for each recommended option.

SUPPORT SCHEME LEGISLATIVE DEVELOPMENT

The Task Order required drafting and/or advising on as minimum, four primary and/or secondary legislation including laws, amendments to laws, rules and/or regulations to be identified as part of the renewable energy support scheme for Georgia. The suggested support scheme was to attract and leverage significant investment in electricity generation infrastructure and promote the development of energy generation from a diversified source of native resources. On that note, Program consultants developed the following documents:

1. Comments on Draft Law of Georgia on Promoting the Production and Use of Energy from Renewable Sources. The Program delivered valuable comments that supported the MoESD in the adoption of the Law, which promotes the use of energy from renewable energy sources.

2. Comments on the draft National Renewable Energy Action Plan (NREAP)

The Program delivered valuable comments on NREAP to the MoESD which supported the GoG in the adoption of NREAP, also facilitated the implementation of the draft Law on Renewable Energy.

3. Legal Procedures Applied to Projects Not Related to PPP Legislation

This document is designed to aid the developers to navigate the GoG processes quickly and transparently through providing appropriate legal recommendations and guidance to transverse the development process.

4. National Environmental Requirements for VRE Projects

The document overviews the steps required at the initial stage of VRE projects’ implementation. The offered guidance will aid any developer to have a clear understanding of environmental regulations for the projects having an environmental impact. The Program shared the procedural guidelines with the VRE developers.

3.3 SUPPORTING ENERGY INVESTMENT PROJECTS

To support small and medium-size VRE projects, the USAID Energy Program led direct assistance for the following projects:

Report on Comments on Draft Law of Georgia on Promoting the Production and Use of Energy from Renewable Sources

First Page of the NREAP

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FEASIBILITY STUDIES

Eight feasibility studies (FS) were reviewed and commented upon, as follows:

1. Tbilisi Wind Power Plant (WPP) - the Program reviewed the Environmental Impact Assessment (EIA) of Tbilisi WPP as part of the FS and developed a report - “Wind Energy and Special Protected Areas”. The report incorporates recommendations of an international expert Mr. Miguel Mascarenhas, Manager / Ecological Environmental Specialist, at Bioinsight Consulting Company, delivered during the VREST. The Program helped Tbilisi WPP pass the scoping procedure successfully. On April 24, 2020, Tbilisi WPP submitted the EIA to the Ministry of Environmental Protection and Agriculture of Georgia (MEPA) for environmental decisions.

2. Kaspi WPP - the Program reviewed the environmental impact assessment (EIA) of Kaspi WPP as part of the FS and developed a report - “Wind Energy and Special Protected Areas” The report incorporates recommendations of an international expert Mr. Miguel Mascarenhas, Manager / Ecological Environmental Specialist, at Bioinsight Consulting Company, delivered during the VREST. The Program helped Kaspi WPP pass the scoping procedure successfully. Kaspi WPP submitted the EIA to the MEPA for environmental decisions.

3. Gardabani Bio-Gas Power Plant - the Program reviewed FS and provided "Recommendations on Environmental Decision Procedures for Bio-Gas Power Plant Project”. The document guides on the procedures essential to comply with the national environmental requirements. The Program helped Gardabani Bio-Gas to be identified as a subject of the scoping procedure. The Program counselled the Gardabani Bio-Gas to submit documents for the scoping in MEPA. Currently, the Gardabani Bio-Gas is coordinating with the GEDF for future collaboration.

4. MRDI (represents 700 potential off-grid households) - the Program advised the MoESD and MRDI on cost-effective technology for the electrification of off-grid households. To evaluate the costs and develop the concept, the Program surveyed over 700 off-grid households, created a respective database and proposed FS concept to the MRDI. With the technical support of the Program, the GoG allocated 2 million GEL from the central budget to finance the project. The company UGT installed solar PV systems to the 207 permanent households in the off-grid settlements of Georgia. To ensure the effective use of installed equipment, the Program trained residents on the most efficient and accurate application of

Electric Energy Generating Process of Gardabani Bio-Gas Station. Source, ALT-Energy ltd.

Miguel Mascarenhas, Manager / Ecological Environmental Specialist, at Bioinsight Consulting Company

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Solar PV Systems.

5. Kvernaki Solar Power Plant - the Program reviewed FS of Kvernaki Solar Power Plant (SPP) and supported the calculation of technical parameters and the development of FS requirements for the project outline. The Program aided Kvernaki SPP in delivering the project outline and FS parameters to the MoESD.

6. Karaleti Solar Power Plant - the Program reviewed FS of Karaleti SPP and supported the calculation of technical parameters and the development of FS requirements for the project outline. The Program aided Karaleti SPP in delivering the project outline and FS parameters to the MoESD.

7. Marneuli Solar Power Plant - the Program reviewed FS of Marneuli and supported the calculation of technical parameters and the development of FS requirements for the project outline. The Program aided Marneuli SPP in delivering the project outline and FS parameters to the MoESD.

8. Plavi Solar Power Plant - the Program reviewed FS of Plavi SPP and supported the calculation of technical parameters and the development of FS requirements for the project outline. The Program helped Plavi SPP deliver the project outline and FS parameters to the MoESD. As a result of the USAID Energy Program’s assistance, the MoESD suggested Plavi SPP sign the MoU on the development of the 7 MW solar project.

APPLICATIONS FOR INTERCONNECTION AND NEGOTIATIONS FOR PPAS

Program consultants supported six businesses with the preparation of applications for interconnecting with the grid and/or negotiations with electricity off-takers / buyers throughout the life of the project:

1. Imereti 1 WPP - the Program recommended the connection of Imereti 1 WPP to the Georgian Transmission System (Infinite Energy). The Program help discussions and formal workshops with GSE and other stakeholders on the connection issues which turned into vital input for the initiation of an amendment to the Network Rules. These Rules set specific limits for new generation units and consumers’ active power capacity in the case of deep connection to the transmission line. As a result of discussions with GSE and GNERC, the USAID Energy Program helped identify new consumers willing to connect to the power line with regard to the site selection for the plant, by adopting an amendment to the Network Rules: The lower connection limit set dependents on the voltage of transmission line - adopted on July 25, 2019. The USAID Energy Program helped Imereti 1 WPP negotiate with the GSE in receiving the approval on connection to the 110- Kilovolt (kV) grid.

2. Imereti 1 WPP - the Program reviewed the regulatory draft of the Power Purchase Agreement for Imereti 1 WPP, assisted Imereti 1 WPP in launching negotiations with ESCO on the draft PPA and helped to make the PPA conditions eligible for receiving approval from the MoF on the off-take tariff.

The Program Surveyed Over 700 Off-Grid Households - Mr. Irakli Sulkhanishvili in Village Chadis Tsikhe

People from 136 Villages Received Trainings on PV System Use - Mr. Giorgi Jangveladze in Village Tchontili

Installed Solar PV Systems to the 207 Permanent Households - Village Tchesho

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3. Nigoza WPP - the Program proposed the preliminary analysis of the Gori substation and evaluated the ability to be connected with Nigoza Wind Farm. The Program familiarized Nigoza WPP with the grid capability results, allowing a further understanding of the obstacles facing the project. The Program examined the ability of the Nigoza (50 MW) wind farm to be connected to the Gori Substation kV and prepared respective recommendations. The Program also helped Nigoza negotiate with GSE on Network connection conditions.

4. Tbilisi WPP - the Program advised Tbilisi WPP to negotiate with the GoG regarding the off-take tariff based on the study regarding the “Pricing to Support Development of the Variable Renewable Energy in Georgia.” As a result of the Program’s involvement, Tbilisi WPP negotiated with the GoG on the preliminary PPA terms of the off-take tariff.

5. Marneuli SPP - the Program reviewed the Feasibility Study of Marneuli SPP and recommended the connection to the Georgian Transmission System. The Program advised Marneuli SPP to prepare the applications for interconnecting with the grid. The study is relevant in terms of estimating the feasibility of the project and ensuring the successful connections to the transmission grid.

6. Plavi SPP - Program consultants reviewed the draft MoU between the GoG and LKS Solar, proposed by the MoESD. The Program provided recommendations in line with the common practice in emerging markets, for developing the solar energy sector. The study helps the Plavi SPP negotiate agreement conditions with the MoESD.

IDENTIFY FINANCING SOURCES

The Program consultants supported 12 businesses with identification of financing sources, making proposed projects eligible for financing, and preparing project documentation to support applications for financing throughout the life of the project;

1. Borjomi Biomass Hybrid project - the Program helped the Borjomi Biomass Hybrid project develop a project teaser and suggested the promotion of funding opportunities on the project Hybrid Energy Station in Borjomi Municipality for the achievement of the green status by the City. The Program introduced the Borjomi Biomass Hybrid project to the potential investors - Dutch Embassy and NIRAS. The document helps the project lead negotiations with the GEDF as a possible public partner.

2. Imereti 1 WPP - the Program helped Imereti 1 WPP advance the project eligibility, assisted in developing the project teaser and introduced the project to the potential investor - U.S. International Development Finance Corporation (DFC).

3. Tbilisi WPP - the Program helped Tbilisi WPP advance the project eligibility, assisted in developing the project teaser and introduced the project to the potential investor - DFC.

4. Kaspi WPP - the Program helped Kaspi WPP advance project eligibility, assisted in developing the project teaser and introduced the project to the potential investor - DFC. The DFC expressed interest in the project and the parties continued direct communication.

5. Nigoza WPP - the Program helped Nigoza WPP advance project eligibility, assisted in developing the project teaser and introduced the project to the potential investor - DFC.

International VRE Integration Expert, Senior Regulatory Advisor Mr. Valeriy Vlatchkov Visiting Gori Substation

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6. Plavi SPP - the Program reviewed the financial model of Plavi SPP and helped in validating the financial model to increase the eligibility of the project for introduction to IFI's. The Program helped Plavi SPP advance the financial model.

7. Kvernaki SPP – the Program reviewed the financial model of Kvernaki SPP and helped in validating the financial model to improve eligibility of the project for introduction to IFI's. The Program helped Kvernaki SPP advance the financial model.

8. Karaleti SPP – the Program reviewed the financial model of Karaleti SPP and helped in validating the financial model to improve eligibility of the project for introduction to IFI's. The Program helped Karaleti SPP advance the financial model.

9. Ruisi WPP – the Program offered an opportunity to Ruisi WPP to present the WPP project at the Variable Renewable Energy Summit, which exposed them to at least 10 financial institutions. The USAID Energy Program helped Ruisi WPP introduce the project to the financial institution: TBC Bank, Bank of Georgia (BoG), EBRD, ADB, German Government-Owned Development Bank (KfW), WB, United Nations Development Programme (UNDP), Proparco, ADF, Private Financing Advisory Network (PFAN).

10. Zestaponi WPP - the Program offered an opportunity to Zestaponi WPP to present the WPP project at the Variable Renewable Energy Summit which exposed them to at least 10 financial institutions. The Program helped Zestaponi WPP introduce the project to the financial institution: TBC Bank, BoG, EBRD, ADB, KfW, WB, UNDP, Proparco, ADF, PFAN.

11. Udabno SPP – the Program offered an opportunity to Udabno SPP to present the SPP project at the Variable Renewable Energy Summit, which exposed them to at least 10 financial institutions. The Program helped Udabno SPP introduce the project to the financial institutions: TBC Bank, BoG, EBRD, ADB, KfW, WB, UNDP, Proparco, ADF and PFAN.

12. Report on the Identification of Financial Sources for VRE Projects – the Program developed a study aimed to identify the potential sources of financing for VRE projects in Georgia. This report helps VRE developers identify funding sources, procedure guidelines, make proposed projects eligible for financing, and prepare project documentation to support funding applications. The Program presented the study at the Investor Advisory Group Meeting.

APPLICATIONS FOR AUTHORIZATION AND LICENSE OF NEW GENERATION

Program consultants helped on six applications for authorization and license of new generation facilities, as follows:

1. Gardabani Bio-Gas Power Plant - the Program recommended legal procedures for the bio-gas power plant project. The Program helped Gardabani Bio-Gas navigate the GoG

Variable Renewable Energy Summit Tbilisi

Cover of the Report on the Identification of Financial Sources for VRE Projects

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processes quickly and transparently through legal recommendations and guidance to transverse the development process.

2. Plavi SPP - the Program recommended legal procedures for the authorization and license of the project. The document helps the Plavi SPP follow the main procedures to obtain approval from the GoG and meet requirements set by the respective legislation.

3. Kaspi WPP - the Program recommended legal procedures for the authorization and license of the project. The document provides profound insight into the requirements for formal authorization to implement certain activities for VRE projects. The document helps Imereti 1 WPP follow the main procedures to obtain approval from the GoG and meet requirements set by the respective legislation. The Program proposed the Authorization Checklists on permits and licenses essential for renewable energy project development in Georgia.

4. Tbilisi 1 WPP - the Program recommended legal procedures for the authorization and license of the project. The document provides profound insight into the requirements for formal authorization to implement certain activities for VRE projects. The document helps Imereti 1 WPP follow the main procedures to obtain approval from the GoG and meet requirements set by the respective legislation. The Program proposed the Authorization Checklists on permits and licenses essential for renewable energy project development in Georgia.

5. Imereti 1 WPP - the Program recommended legal procedures for the authorization and license of the project. The document provides profound insight into requirements for formal authorization to implement certain activities for VRE projects. The document helps Imereti 1 WPP follow the main procedures to obtain approval from the GoG and meet requirements set by the respective legislation. The Program proposed the Authorization Checklists on permits and licenses essential for renewable energy project development in Georgia.

6. SPP in Udabno - upon the request of the SPP in Udabno, the USAID Energy Program advised on proceeding negotiation with the GoG on the application process, also recommended legal procedures for the authorization and license of the project. Therefore, to help the developer navigate the GoG processes quickly and transparently through appropriate recommendations and guidance to traverse the development process, the Program shared the following documents - “Legal Procedures Applied to Projects Not Related to PPP Legislation” and “Renewable Energy Investor Guidebook,” which, along with explanatory discussions, the developer acknowledged as useful.

Under the Task Order section 3.3, the USAID Energy Program supported non-hydro renewable energy projects to become eligible for financing. The task required that the Program provided technical assistance to no less than 10 eligible businesses that plan to construct and operate small and medium-size renewable energy generation projects, primarily VRE generation projects. Over the life of the project, the USAID Energy Program continuously supported the developers to make the VRE projects eligible for financing and technically feasible. In all, the Program assisted 20 businesses in technical, economic, financial, environmental, and regulatory issues.

The table below sets out the list of selected Variable Renewable Energy Projects, that benefited from the Program’s support.

# Project Name Developer / Investor Installed Capacity (MW)

1 Imereti 1 WPP Infinity Energy 100.0

2 Nigoza WPP GEDF; Calik 50.0

3 Tbilisi WPP GRPC 54.0

4 Kaspi WPP GRPC 54.0

5 Taba WPP Anadolu Group 20.0

6 Zestaponi WPP GEDF, Geokraft 50.0

7 Udabno Solar PP GEDF, Solar Power Georgia 5.0

8 Borjomi Hybrid Biomass New Technology Center (NTC) 10.0

9 Gardabani Bio Gas Project Alt Energy 2.0

10 Kvernaki Solar Power Plant LKS Solar 14.0

11 Karaleti Solar Power Plant LKS Solar 2.0

12 Plavi Solar Power Plant LKS Solar 7.0

13 Ruisi WPP Chero Consulting, GEDF 12.6

14 Tkibuli WPP GRPC 50.0

15 Marneuli SPP GRPC 50.0

16 Kaspi SPP GRPC 50.0

17 Gareji SPP LLC Solar House 15.0

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# Project Name Developer / Investor Installed Capacity (MW)

18 Off-grid Solar PV Project MRDI, UGT 0.3

19 5MW SPP in Udabno Solo / Alternative Development 5.0

20 Marneuli SPP LKS Solar 50.0 Total 600.9

The nature of the USAID Energy Program’s support was contingent on the need of the VRE projects and the Program’s ability to accommodate the need. However, a certain category of assistance provided by the Program delivered value to the overall renewable energy sector. This broad range of activities include:

Actions to allow better grid integration of non-hydro variable renewable;

Support to the MoESD in the development of the draft Renewable Energy Law;

Development of potential Renewable Energy Support Schemes;

Workshops on Resource Adequacy, Renewable Energy Support Mechanisms and Investor Advisory Group Meetings;

The Renewable Energy Investor Guidebook, to support applicants in the authorization and licensing of new generation facilities;

Pricing to support the development of the VRE in Georgia and help in negotiations on off-take tariff conditions;

VRE Summit in Tbilisi to attract investment and facilitate linkages between potential financiers and developers;

Support in project teasers development to introduce the potential project to the financial institutions;

Analysis of how to handle imbalance costs for VRE generators, consensus-building amongst VRE developers and GoG on the contractual framework under new electricity market structure, mandating hourly balancing of the system.

Direct support to the selected projects was distinct, depending on numerous factors such as the capabilities and knowledge of developers and the development stage of the project.

With the technical assistance of the USAID Energy Program, 4 WPP projects – 50 MW Nigoza WPP, 100 MW Imereti 1 WPP, 54 MW Kaspi WPP and 54 MW Tbilisi WPP were successfully shifted to the final development stage. The GoG reviewed these 4 wind projects and accepted the respective concepts for further proceeding. The Ministry of Finance of Georgia (MoF) approved the initial PPA for all advanced stage wind farms. Therefore, currently, the project developers are dealing with MoF on the electricity off-take tariff conditions. The Program has been actively engaged in the process of tariff agreement with the GoG. The Program offered the MoESD the study on pricing of the VRE projects and recommendations on Incentive Schemes. All 4 projects are awaiting to sign the MoU and start construction works shortly. The total installed capacity of wind projects is 258 MW, with an approximate total investment value of USD 358 million.

The Program Received an acknowledgment letter from the Executive Director of Infinite Energy, Mr. Tornike Bakhturidze, Developer of 100 MW Wind Power Plant (WPP) Imereti 1

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OFF GRID SOLAR PV SYSTEM PROJECT FOR HIGH MOUNTAIN HOUSEHOLDS

To help Georgia strengthen its energy security and ensure a stable supply of electricity to all citizens, the USAID Energy Program collaborated with the Ministry of Rural Development and Infrastructure (MRDI). The Program advised the MoESD and MRDI on the most cost-effective technology for the electrification of off-grid households. To evaluate the costs and develop the concept, the USAID Energy Program surveyed over 700 off-grid households, created a respective database and proposed the FS concept to the MRDI.

With the technical support of the USAID Energy Program, the MRDI obtained information on off-grid families and their energy needs. To implement the Project, the GoG allocated 2 Million GEL from the state budget and installed the solar panels in 95 off-grid villages for 207 families which created a more sophisticated and modernized lifestyle for off-grid inhabitants. The off-grid houses are equipped with a solar panel of 1500 watt (W) capacity, enough to operate several household appliances. The system package includes 1500 W PV panels, accumulator Batteries with a capacity of 800 Ampere hour

(Amp/H), Inverter with an integrated controller with a capacity of 3000 Volt-Ampere (VA).

To create awareness on the effective use of Solar PV Systems, the Program offered a series of trainings instructing the off-grid village communities on the most effective and efficient use of Solar Panels.

Task 3 Lead, Ms. Tamar Murtskhvaladze Introducing PV Systems to Local Resident of Village Tchontili, Dusheti Municipality

Field Manager, Mr. Irakli Sulkhanishvili Surveying Local Resident of

Village Mghebriani, Gori Municipality

Field Manager, Mr. Irakli Sulkhanishvili Surveying Local Resident of Village Ukanapshavi, Gori Municipality

Field Manager, Mr. Irakli Sulkhanishvili Surveying Local Resident of Village Chobalauri, Kaspi Municipality

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Installed Solar Panel - Village Chigho

Installed Solar Panel - Village Udzilarta

The USAID Energy Program Conducting Trainings on PV System Usage to the Local Population of Off-Grid Villages

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RENEWABLE ENERGY INVESTOR GUIDEBOOK

Georgia’s economic development and resilience depend on a robust energy sector supported by long-term investments to drive sustainable domestic energy production. To facilitate these investments, the USAID Energy Program developed an Interactive Renewable Energy Investor Guidebook. This is the first publicly available document that provides a detailed description of all necessary procedures for the successful implementation of the renewable energy project in Georgia, since the adoption of the Law on PPP.

The Interactive Renewable Energy Investor Guidebook is a useful document aiding renewable energy project developers to navigate Georgia’s project development process, including leading practices and roadmaps to address technical, administrative / regulatory, and financial issues. It details all of the necessary procedures for the successful implementation of renewable energy projects in Georgia since the adoption of PPP Law. Several workshops were dedicated to the topic of PPP Law / related secondary legislation, and Interactive Renewable Energy Investor Guidebook.

Guidebook Brochure

Web Based Interactive Renewable Energy Guidebook, Project Development Phases

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In February 2020 the Program transferred the web-based Interactive Renewable Energy Investor Guidebook’ to the GEDF. The GEDF is bound to support current and future investments in the Georgian energy sector. The Guidebook is available on the web-page of the GEDF.

Official Transferring Ceremony of Web-Based Interactive Renewable Energy Investor Guidebook, March 11, 2020, at Sheraton Metechi Palace.

https://vre.gedf.com.ge/en

Task 4 Detail


VIII. TASK 4 DETAIL Grid integration is the process of managing the operation of the grid when there is a significant amount of wind or solar coming online. The grid operator’s problem is that, while wind and solar resources are very reliable and predictable on an average basis, they are variable from moment to moment. So, to better manage and predict VRE resources and allow Georgia better plan balancing ancillary services and maintain grid stability, the Task Order required that the Program delivered technical assistance to GSE to design and implement a modern forecasting system that provides accurate and timely information of expected production and availability of RE-based generated input. The Program produced three deliverables on grid integration.

The main tool for successful grid integration is to have a robust VRE forecasting system, which support is elaborated below.

PLAN AND DESIGN FOR THE NATIONAL VARIABLE RENEWABLE ENERGY FORECASTING SYSTEM

THE PREPARATORY STAGE FOR THE DEVELOPMENT AND IMPLEMENTATION OF VRE FORECASTING IN GEORGIA

The Program undertook the following activities at the preparatory stage aimed for the development and implementation of a VRE forecasting system in Georgia.

Deliverables and Actions

The Program surveyed the potential vendors’ capability to provide VRE forecasting services applicable to Georgia. The vendors included all globally leading companies for VRE forecasting such as the United States of America National Center for Atmospheric Research (NCAR), DNV GL, VAISALA, Technical University of Denmark (DTU), Meteologica, UL AWS True Power, ENFOR;

July 12 – 4 August 2018, NEA predicted Wind Speed in Test Mode which was compared to the measurement of Wind Speed from Nacelles of Qartli Wind Farm

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The Program researched the available methods and models for VRE forecasting. The respective report, “Available Variable Renewable Energy Forecasting Tools and Methodologies” incorporates the description of forecasting model types and recommendations for the initial stage of forecasting system development. The input of the report was used for the engagement and initiation of discussion on the forecasting system with the key stakeholders;

The Program facilitated the creation of a Working Group comprising of the representatives from GSE, National Environmental Agency (NEA) and QWF for wind speed forecast in test mode;

The Program ensured the capacity building of stakeholders on VRE forecasting, aimed at creating awareness of how to acquire data, the limits of forecasting, managing errors, prediction time horizons, prediction parameters, and data requirement;

The Program gained consensus on the recommendation for the implementation of the VRE forecasting system. GSE and the Program agreed on the Centralized Wind Power Forecasting System, implemented through the provision of wind forecasting services as the most cost and time-effective solution for the implementation of the forecasting system;

The Program assessed the infrastructure for the provision of data as an input of VRE forecasting. The results were captured in a report “Initial Assessment of Variable Renewable Energy Forecasting Infrastructure”;

The Program assessed the legislation to ensure the provision and/or access to data required for VRE forecasting. The results were captured in a report “Legislation Assessment for VRE Forecasting”;

The Program identified the hosting agency, for settling an agreement on the “VRE forecasting System Design and Implementation Plan” where GSE / Dispatch Licensee is identified as the hosting agency.

With the above-listed accomplishments, the USAID Energy Program formed the sound basis for the development of the VRE Forecasting Concept Design and Implementation Plan.

VRE FORECASTING CENTRALIZED SYSTEM CONCEPT DESIGN AND ITS IMPLEMENTATION PLAN

The USAID Energy Program introduced and agreed on the VRE forecasting Centralized System Concept Design and its Implementation Plan to GSE, agreed with GSE.

On February 2, 2019, the Program organized Workshop at the GSE on Wind Power Forecasting. The USAID Energy Program elaborated on the VRE Forecasting Conceptual Design and the Implementation Plan and discussed the examples of VRE Forecasting Centralized System with the representatives of the GSE Dispatch Department

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The agreement on the VRE Forecasting Conceptual Design and implementation process undertaken by GSE (Hosting Agency) empowered the Program to accomplish the first part of contractual obligations and shift to the actual implementation stage.

In addition to the VRE Conceptual Design and Wind Power Forecasting regulation, at the request of GSE the Program developed a report on Georgian Wind Forecasting Project - Report on Required Infrastructure, Works and Cost Assessment to Increase the Forecasting Accuracy. The report provides insights on the data set needed for the delivery of accurate wind power forecast, envisages equipment that may be deployed for the measurement of meteorological and power parameters and incorporates references to the wind industry standards applicable for wind measurement. In the conclusion, the report offers direction for future work.

The target audience for the report was GSE. The document explains the need for additional infrastructure, costs needed to comply with data exchange intervals set by vendors, and improvements required for data exchange by making it mandatory through license requirement.

FORECASTING SYSTEM FOR PRODUCTION AND AVAILABILITY OF VARIABLE RENEWABLE ENERGY

VRE FORECASTING PROCUREMENT AND IMPLEMENTATION STAGE

VRE forecasting is at the nascent stage of development in Georgia. For the first time, with the support of the USAID Energy Program, the procurement of forecasting services took place by competitive bid. The participants of the bid were the worldwide known companies from the US and Europe. In that regard, the Program completed the following activities:

Mix of Deliverables and Actions:

The Program developed the Terms of Reference (ToR) for the forecasting system, in close cooperation with GSE;

The Program handled pre-and after bid clarification process on the Scope of Work (SoW);

The Program facilitated the signing of a Contract;

The Program launched the delivery of forecasting services;

The Program continuously provided day to day support during the forecasting implementation process;

The Program delivered a presentation and forged discussion on the forecasting data requirement with GSE and developers of wind farms.

IMPLEMENTATION OF ACCURATE VRE FORECASTING

To enhance the VRE, wind and solar utilization and grid integration, the USAID Energy Program supported the development of accurate VRE forecasting.

As a result of a successful cooperation, facilitated by the USAID Energy Program, between the worldwide known UL AWS True Power, ENFOR and GSE, the latest has access to the Forecasting

On July 3, 2019, USAID Energy Program presented the final draft of the VRE Forecasting Centralized System Concept Design and its Implementation Plan to GSE

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Project implemented in cooperation with the UL AWS True Power and ENFOR. This will help GSE efficiently allocate resources for congestion management and grid stability.

The precise forecasting will not only foster the development of wind projects but also contribute to energy security, economic growth, and further integration with the EU.

Description of the Forecasting Vendors:

On October 5, 2020, the USAID Energy Program hosted the Wind Power Forecasting Transfer and Results Sharing Event. The event took place at the QWF, which enabled GSE and UL to familiarise the key energy stakeholders with the results of the Wind Power Forecasting Project.

UL - Screenshot from General User Interface Qartli Wind Power Forecasting Saturday, Jul 4, 2020

The UL renewables team, headquartered in Albany, New York, has a professional staff of over 160 engineers, meteorologists, modelers, analysts, and Geographic Information System (GIS) specialists who are field-oriented and fully conversant of large commercial projects, utility electrical systems, remote field measurements, and distributed applications. UL is one of the world’s leading renewable energy forecasting providers. Globally UL is providing forecasting services in 13 counties for over 85 GW of installed wind and solar generation capacity for over 1,700 utility-scale sites, all at the individual plant level.

ENFOR™ - Denmark, Copenhagen based company provides forecasting and optimization solutions for the energy sector. ENFOR™ was established in 2006 as a spin-off from the Technical University of Denmark. The company has a solid operational track record and daily serves customers in 12 countries around the world. Utilities, energy traders, transmission and DSOs use ENFOR™ solutions for forecasting of renewable energy production, electricity, and heat demand as well as for the optimization of district heating systems.

Wind Power Forecasting Transfer and Results Sharing Event

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ESTABLISH PROCEDURES FOR GENERATING AND SHARING FORECASTS

The USAID Energy Program developed and officially submitted the report “Draft Amendments to the Grid Code - Wind Power Forecasting” to GSE. As a result, the Program received the acknowledgement letter from GSE for the delivered and ongoing support. Through the letter, GSE expressed the value of wind forecasting implementation for VRE development in Georgia.

The letter also focuses on the ongoing negotiations with the wind power plant developers over the data exchange, which is a relatively complex issue and will require further cooperation and assistance.

Upon the request of GSE, the Program translated the report on “Draft Amendments to the Network Rules document into the Georgian language”. Draft Amendment shared between the operators and developers of wind farms for feedback.

On July 23, 2020, GSE and the USAID Energy Program forged discussion with the operators and developers of a wind farm on the concept and content of Draft Grid Code Amendment -Wind Power Forecasting

GSE is committed to further proceed with the Draft Network Amendment-Wind Power Forecasting Regulation and submit it to Georgia Energy and Water Supply Regulatory Commission for approval.

Wind Power Forecasting Transfer and Results Sharing Event. At the event held at Qartli Wind Farm, GSE and UL sharing results of wind power

forecasting project with a stakeholder, October 5, 2020

Feedback received from GSE on Draft Amendments to the Grid Code expressing commitment to further proceed with the Draft

Task 4 Detail


Incorporation of the amendment will ensure the operability and sustainability of the Centralized System of Wind Power Forecasting and will be a step ahead in support of increased VRE grid penetration.

Together with GSE the USAID Energy Program discussing with the operators and developers of wind farm the concept and content of Draft Grid Code Amendment -Wind Power Forecasting, July 23, 2020

Task 5 Detail


IX. TASK 5 DETAIL The USAID Energy Program furnished ad-hoc assistance to the GoG through strategic advisory services to enhance the energy security of the country and transform the energy sector into a modern EU-integrated market. These services included expert assessment analysis, study tours to learn leading practices, system modeling, and consultative engagement.

Energy security globally poses unique difficulties for policy-makers for many reasons. First, the electrical power system is complex, sometimes called the most complicated system built by humans. Analogies fail in describing the power system. As a result, it is hard for policy-makers to reasonably debate actions, investments, consequences. Second, energy security concerns risk later versus spending money now. Risk is amorphous and distant, hard to calculate, and ultimately not rewarded politically. Third, different stakeholders have different priorities - balancing economics, impact of energy disruption, and time horizon of their concerns. Fourth, energy investments often are highly “chunky.” It is impossible to build half of a hydroelectric dam. It is useless to build some of a transmission line. Even at a more granular level, it is impossible to replace half of a high-voltage transformer.

To have a forum to evaluate these complex issues, the Working Group venue offered an effective solution. The first task of the Working Group was to consider all of the aspects of energy security to come to agreement on what should be considered the most critical and timely issues for Georgia’s energy security.

CRITICAL AND TIMELY ISSUES FOR GEORGIA’S ENERGY SECURITY

In 2018, the USAID Energy Program originated a list of “Critical and Timely Issues for Georgia's Energy Security” based on the in-depth analysis of electricity and natural gas sectors and through consultative engagement with the key stakeholders. This list identified 38 issues, out of which the five most important topics were:

Conference “Energy Security in the Caucasus Region in Light of Market Opening” – Mr. Daniel Potash, Ms Natia Turnava, Mr. Peter Wiebler, Ambassador Radu Horumba, Mr. Revaz Arveladze, April 12, 2019, Tbilisi.

Task 5 Detail


1. The maintenance of Enguri HPP and uncontrolled electricity demand in Abkhazia;

2. Determining the Generation Resource Adequacy for Georgia’s power system;

3. Potential political risks (Russia), their impact on the energy security and mitigation measures;

4. Monopolistic market structure and the natural gas supply diversification;

5. Gas storage: strategic reserve used not only for force-majeure situations but also on regular basis.

The USAID Energy Program updated the critical and timely issues during the life of the Program, which remained consistent. The Program

addressed these issues during the discussions at the Energy Security Working Group Meetings. The Program also hosted a conference “Energy Security in the Caucasus Region in Light of Market Opening.”

Conference participants explored the existing and emerging energy trends, challenges and creative solutions for energy security, the availability of renewable energy sources (wind, solar and biomass), new technologies, the emergence of new market conditions and new market operators. The event, targeted at high-level GoG officials, aimed to raise awareness of energy security in the context of overall national security of Georgia and provide a venue for discussion of critical energy security topics.

Dr. Robert F. Ichord, Jr., Deloitte Consultant, Senior Fellow at the Atlantic Council and Mr. Duncan Millard, Chief Statistician and Head of Energy Data Center, International Energy Agency (IEA) were the keynote speakers at the conference.

In 2020, the Program updated the list of “Critical and Timely Issues for Georgia's Energy Security”, by introducing the latest energy security challenges. In the past in Georgia, geopolitics and the supply of oil and gas were the dominant factors determining energy security. Today, a broader and more complex spectrum of elements are interacting to both stabilize and threaten energy security. The USAID Energy Program restructured the security issues of the energy sector and prepared respective stand-alone one-pager documents on the critical challenges. On that note, the Program developed 15 USAID “Fast-Forward” Energy Security Scenarios Analyses listed below:

Fast Forward Energy Security Analyses:

Black Swan Example: COVID -19 and Energy Sector Impact;

Carbon Markets, Risks and Opportunities;

Climate Change and Energy Security;

Critical Infrastructure Resiliency;

Cybersecurity;

Diversification of Energy Supplies;

Energy Demand and Supply Gap;

Enguri and Abkhazia;

EU Third Energy Package;

Gas Pipelines and Cross-border Interconnections;

Geopolitical Diagnosis;

Power Markets and Energy Security;

Role of Donors and International Institutions;

Dr. Robert F. Ichord speaking at a conference in April 2019 in Tbilisi, Energy Security in the Caucasus Region in Light of Market Opening

Mr. Duncan Millard - Chief Statistician and Head of Energy Data Center, IEA discussed the importance of statistics in making a valuable decision. The Energy Security Conference in the Caucasus Region in Light of Market Opening.

April 2019.

Task 5 Detail


Role of Government in Energy Security;

Shifting Consumption and Demand Patterns.

Due to the COVID -19 outbreak, the Program implemented the energy security interventions on a remote basis starting from March 2020 and organized the following events:

Zoom Webinar “First Energy Security Workshop”;

Follow-up Zoom Webinar “The World Remade by COVID -19. Scenario Planning for Georgia’s Energy Sector”;

Energy Security Conference III Critical and Timely Issues.

Sample of Fast Forward Analysis

Ms. Natia Turnava, Mr. Davit Narmania, Mr. Giorgi Chikovani, Mr. Daniel Potash and Mr. Peter Wiebler.

Energy Security Conference III, October 7, 2020 Minister of MoESD, Ms. Natia Turnava opened the conference, assessing the strides of the energy sector reform despite the COVID-19 outbreak

Figure 2: Example of Energy Security Executive Briefer

Task 5 Detail


RESOURCE ADEQUACY STUDY

Upon the request of the GEDF, the Program administered a study that sets forth the ways for identifying the minimum share of domestic generation capacity in total demand essential for the security of supply in Georgia. The USAID Energy Program developed the Georgian Resource Adequacy Model (GRAM), an important tool to run over 16 scenarios using the Monte Carlo simulation method to understand the randomness of the supply system availability. The GRAM is based on the data provided by GSE for Georgia’s power system: future electricity demand forecast, the quantity and availability characteristics of the power supply fleet, variations in the availability of hydro generation due to water flows and any availability of supply from neighboring systems. The study estimated how much supply is needed to meet the future electricity demand during the next four to five years considering the optimal resource adequacy indices derived for Georgia’s power sector.

In addition, the study addressed the inquiry of the MoESD, GEDF and GSE in terms of identifying Georgia’s level of reliance on imports for resource Adequacy purposes. The most power pools in the US and in many EU countries, characterized by strong interconnected power systems and close political and business relations between power suppliers, have minimum reliance on imported power for Resource Adequacy. In the case of Georgia’s power sector, with limited commercial relationships with its neighbors, the study suggests limiting the reliance on imported power to zero MW in the base case and shows scenarios with three percent or 75 MW import for Resource Adequacy purposes.

The Program disseminated the Model of the Resource Adequacy among the members of the Energy Security WG and presented “Key Findings on the Power Generation Resource Adequacy” to the Government of Georgia and Energy Stakeholders.

Engagement Workshop for Energy Sector Stakeholders Regarding Electricity Resource Adequacy - Mr. Daniel Potash, Mr. Nicholas Okreshidze, Mr. Davit Tvalabeishvili and Dr. Masood Ahmad, June 24, 2019

Dr. Masood Ahmad presented Observations about Resource Adequacy for Georgia at the Engagement Workshop for Energy Sector Stakeholders Regarding Electricity Resource Adequacy - Dr. Ivane Pirveli, Dr. Masood Ahmad and Ms. Ana Jejelava, June 24, 2019

Task 5 Detail


ENGURI HYDRO POWER PLANT DUE DILIGENCE AND ASSESSMENT

One of the persistent challenges remains the reliability of the Enguri HPP, both from the technical and geopolitical perspective due to its location in breakaway region Abkhazia. On that note, the USAID Energy Program brought the International Dam Expert, Mr. Phil Hoover, for the Enguri HPP assessment. This targeted intervention of the Program saw a considerable appreciation among the energy experts, due to the high priority attached to the effective functioning of the Enguri HPP. Mr. Hoover identified and prioritized the remaining and anticipated Operation and Maintenance (O&M) repairs for the Enguri HPP, following the completion of Phase IV. The evaluation included a review of relevant materials, interviews and deliberations with the Enguri HPP management.

The sustainable operation of Enguri HPP remains a prevalent priority for the energy security of Georgia. However, it has seen poor maintenance for the last few years. In the light of growing electricity consumption in Abkhazia, such a background creates an urgent need for a sustainable solution of energy allocation between Abkhazia and the rest of Georgia. In consultation with the USAID/Georgia, the USAID Energy Program organized international energy experts Mr. Phil Hoover’s visit to Enguri HPP to identify reliable and cost-effective potential solutions.

Following the visit the Program organized the Energy Security Working Group Meeting on “Enguri HPP in the Competitive Energy Market”. The parties unfolded the value of the Enguri HPP for the energy security of Georgia and its functioning in the Competitive Energy Market. International energy expert's visit was pivotal in terms of identifying challenges including Abkhazia, identifying priority measures for maintaining Enguri HPP’s sustainable operation, cost-recovery options and tariff issues. Mr. Hoover channeled his long-standing expertise among the Georgian energy stakeholders concerning the prioritization of issues for the effective functioning of the Enguri HPP.

Phil Hoover’s trip to visit Enguri Hydro Power Plant in Abkhazia region on December 6-8, the visit was followed by the Energy Security Working Group Meeting on December 12, 2018

Energy Security Working Group Meeting on “Enguri Hydro Power Plant in the Competitive Energy Market”, December 12, 2018

Task 5 Detail


IMPROVING CYBERSECURITY: UPGRADING PLANNING SOFTWARE FOR GSE

GSE requested the USAID Energy Program to assist in upgrading and moving two applications - Parallel Market Software (PLMS) and Generation and Consumption Nomination and Planning (GCAP) software to a different, secure platform. Both software items, PLMS and GCAP, required upgrades to mitigate operational system and programming platform vulnerabilities and to comply with basic cybersecurity requirements for web applications. Both applications also needed to meet new information security policies applicable to GSE, comply with the requirements of Open Web Application Security Project (OWASP) Top 10 2017 and pass the analysis through Nessus software without critical error.

The USAID Energy Program and Deloitte’s international cyber specialists discussed the assistance on updating PLMS and Generation / Consumption Scheduling Program (GCAP) software with the IT department of GSE. The parties agreed to involve the software development company to perform the following activities: software upgrade, migration to the server, testing and intensive support on the early stage. The Program in cooperation with GSE’s IT department upgraded PLMS and GCAP to PHP 7 programming

language, migrated PLMS and GCAP to the new Linux 18.4 operating system and updated data security taking into account the basic requirements of OWASP Top 10. As a result of the USAID Energy Program’s support, GCAP and PLMS went live with full functionality and continue serving to GSE’s and market participants’ requirements / needs.

HYDROGEN DEVELOPMENT POTENTIAL IN GEORGIA

In support of the GoG, the Program helped the GEDF evaluate the technology of Power-to-Gas (P2G) and organized a workshop “Hydrogen Economy for Georgia" to share insights on the future of hydrogen, the worldwide experience of hydrogen application that can increase energy security, decarbonize the economy, and provide additional export opportunities for Georgian clean electricity generation. The work incorporated the identification of recent P2G technologies, costs, potential project sites in Georgia, green gas production opportunity, the potential of blending with natural gas, pricing and carbon credits.

Report on Upgrading PLMS / GCAP Software

Workshop on “Hydrogen Economy for Georgia", September 23, 2020 Mr. Giorgi Chikovani, GEDF CEO

Task 5 Detail


ECONOMIC ANALYSIS OF PIPELINE GAS AND ALTERNATIVE SYSTEMS FOR REMOTE VILLAGES

The USAID Energy Program developed pre-feasibility studies for the pipeline network expansion in 1,178 villages across 37 municipalities of Georgia. With this endeavor, the Program estimated the gasification cost (including building pipeline) and the expected demand explicitly for each village. More specifically, a respective team calculated the Net Present Value (NPV) and Internal Rate of Return (IRR) for each municipality separately. The delivered report provides a clear understanding of which municipality has an advantage over the others both from an economic and financial perspective. The report also offers an analysis of alternative technologies and fuel sources, such as biomass, solar, electricity subsidies, biogas, efficient wood stoves, etc. Through the application of life-cycle cost analysis (LCCA), the study compares the cost of pipeline gas to other sources of energy for off-grid villages. The USAID Energy Program shared the results of the study with the MoESD and GGTC that serves as a perspective for developing a strategy for the possible future gasification of all high mountain regions.

Illustrative Map of Settlements from the Report on “Cost Estimation Study of Gas Pipeline Network and Alternative Systems for High-Mountain”

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X CROSS-CUTTING

GENDER

The USAID Energy Program, in cooperation with USAID G4G and Women Business Council, organized the conference “Women’s Role in Energy, Transport and Logistics” in the framework of the Women Empowerment Week in 2018. The conference aimed to strengthen and promote young women leaders’ role in the Georgian energy sector and stimulate an open discussion on recent developments in the energy sector. The conference highlighted the growing role of women in all industries, particularly the adoption of non-traditional roles in various fields including the energy sector.

YOUTH SKILL DEVELOPMENT AND CIVIL PARTICIPATION

As a part of youth skills development, through the life of the project, the USAID Energy Program has mobilized internships for university students to build and refine their professional skills and capacity to participate in the Program supported energy (electricity and gas) market development. It comprised of tailored training, workshops, and daily coaching aimed at creating awareness of competitive energy markets, cross-border electricity trade, energy investment optimization, grid integration of VRE, Energy Security, and other energy-related issues. From the very onset, the Program has adopted many promising approaches that focused on intensive youth guidance.

The Program’s COR Mr. Nicholas Okreshidze, Dr. Ivane Pirveli and Mr. Daniel Potash presented Georgia’s energy security to Master’s degree

students of Caucasus School of Governance

On March 30, USAID Energy Program organized a conference – ‘’Women in Energy, Transport and Logistics” in cooperation with USAID Governing for Growth (G4G) in Georgia and Women Business Council.

Conference “Energy and Environment” at GTU, Ms. Keti Gogishvili and Mr. Beka Shonia delivered presentations, March 14, 2018

https://cu.edu.ge/en/schoolss/csg/siakhleebi/csg-usaid-cu

CROSS CUTTING


During the life of the project, the USAID Energy Program remained committed to youth competence building in line with the evolving Georgia’s energy market needs to create a stronger applicants’ pool. The Program encouraged youth engagement in various events that exposed them to professionals and facilitated the creation of relevant linkages in the sector. Two former Program’s interns today are full-time employees of GSE - one of the key players in Georgia’s energy market. In addition, one of the female interns turned into a full-time employee of the Black Sea Energy. While the other three successful interns turned into full-time employees of the USAID Energy Program.

In light of the energy specialist’s scarcity in Georgia, the USAID Energy Program focused particularly on female engagement in the male-dominated sector. The Program hired an intern Ms.

Ketevan Gogishvili a student from Georgian Technical University (GTU). During the internship, she has turned into a part of a big professional team, which exposed her to hands-on experience and characteristics of the energy sector. Ms. Gogishvili obtained valuable work experience and knowledge which helped her to explore the career path in the energy field. Internship at the Program made Ms. Gogishvili more marketable in Georgia’s competitive jobs market by growing her confidence and visibility. Therefore, upon the accomplishment of the internship, Ms. Gogishvili was directly hired by Black Sea Group – a company engaged in the HPP construction and related activities.

Two other successful interns of the Program Mr. Misha Odisharia and Beka Shonia have been providing support to the whole Program team in the accomplishment of the project tasks in the energy field. In 2019, GSE organized an exam in the energy field aimed at selecting the smart candidates out of 70 applicants. Mr. Misha Odisharia and Mr. Beka Shonia

Ms. Ketevan Gogishvili, graduate of BS in Civil Engineering who became a full-time employee of Black Sea Group, after the Program internship

Mr. Beka Shonia and Mr. Misha Odisharia; both went to GSE as power system engineers, after the Program internship

Training for interns covering several important features of electricity market functioning such as: (1) Aspects of Market Operator (MO) and Transmission System Operator (TSO) Operations; (2) Various Competitive Electricity Markets, May 4, 2018

The presentation made by interns at the end of the year. The interns revealed the understanding of obtained knowledge on the ongoing strides in the energy sector and the impact of high-tech advancement on the power generation.

CROSS CUTTING


went through the tough examination steps and were selected among the 70 candidates. Experience and knowledge obtained at the USAID Energy Program served as a valuable input in preparing a successful career path. Finally, in 2020, both became full- time employees of GSE.

Knowledge dissemination was one of the commitments of the Program, which was apparent on a daily basis, by exposing the interns to the activities of a professional team aimed at contributing to the development of a sustainable and competitive energy market. This successful endeavor turned out beneficial not only for the energy sector but also for the Program itself.

The USAID Energy Program remained committed to youth development and career enhancement through continuous internship programs for students. The Program hired Ms. Ketevan Uchaneishvili from the Free University of Tbilisi with a major in International Relations with a Euro-Atlantic concentration.

Ms. Uchaneishvili with an experience of internship in the US Embassy and Non-Governmental Organization (NGO) further expanded knowledge of the PR and communications by the actual implementation of the theoretical knowledge into daily practice.

In Year 2 the Program hired a female intern from ISET Ms. Ana Bitsadze. She was given a unique opportunity to participate in the working group meetings and obtain firsthand information from the energy experts and support in the research process through data mining. The obtained knwoledge and experience, boosted her confidence , increased her motivation and created clear undesranding of the industry.

Three former interns became full-time employees of the USAID Energy Program engaged in various different areas.

Mr. Giorgi Jangveladze, a graduate of Georgian Technical University (GTU), was hired as a full-time energy analyst from the internship program. His excellent educational background paired with professional guidance enabled him to build self-confidence and identify a career path in the energy sector. Later, he got engaged in knowledge-building activities by conducting trainings for the off-grid village population on the effective application of solar panels.

Another successful intern becoming the Program’s full-time employee was Mr. Kakhi Nemsadze from Heriot-Watt University (UK). Through continuous mentorship and inclusion in the brainstorming sessions encouraged him to take up a job in the real world. Thus, with the advanced skills, he got engaged in the financial analysis of major documents produced by the Program.

The last successful internship was accomplished by Mr. Giga Dzirkvelishvili from GTU University / Civil Law. He has been

continuously exposed to learning from local and international energy experts. The offered hands-on work experience provided the opportunity for interns to apply the acquired knowledge to real work experiences by witnessing day-to-day job duties. By the end of the internship, he turned into a full-time legal expert of the Program.

Mr. Kakhi Nemsadze who became full time employee of the Program

Mr. Giorgi Jangveladze who became full time employee of the Program

Mr. Giga Dzirkvelishvili, who became full time employee of the Program

Ms. Ketevan Uchaneishvili, USAID Energy Program intern from the Free University of Tbilisi

Ms. Ana Bitsadze from ISET

Annex 2


ANNEX 1: CUMULATIVE PMP INDICATOR RESULTS

Indicator Description of Indicator Standard Indicator

Source of data, basis for claim of results, disaggregation and comments

Total Project Target

Total Project Result

1. Generation capacity supported by United States Government (USG) assistance that has achieved financial closure

Quantity of GHG emissions reduced or sequestered as a result of Energy Efficiency (EE), Renewable Energy and climate change projects and policies facilitated by USAID Energy Program

EG.12-5 Documented 3rd party financial closing (GoG Decree #751, dated April 4, 2019 on allocation funds from the state budget) Disaggregate(s): • Solar –0.3 MW Target vs Result: Financial closing delayed by changes in GoG and COVID-19

50 (MW) 0.3 (MW)

2. Energy generation capacity installed or rehabilitated as a result of USG assistance

Quantity of clean energy generation capacity that will be added to the Georgian power system as a result of USAID Energy Program assistance

GoG decrees based on prior signed MoUs (#2468, November 28, 2019, on Imereti 1 WPP project concept approval; #2732, December 30, 2019 on Tbilisi WPP project concept approval; #2734, December 30, 2019 on Kaspi WPP project concept approval; #2289, November 1, 2019 on Nigoza WPP project concept approval), plus written affirmation to USAID Energy Program by project developers: Infinite Energy (100 MW), Calik Energy (50 MW), Georgian Capital (108 MW total, two projects). Target vs Result: Investor interest higher than expected and project sizes larger than expected

50 (MW) 258 (MW)

Annex 2






3. Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by USG assistance

Quantity of GHG emissions reduced or sequestered as a result of laws, regulation and policies facilitated by USAID Energy Program over the 3 years of the project

EG.12-7 GoG decrees based on prior signed MoUs (#2468, November 28, 2019, on Imereti 1 WPP project concept approval; #2732, December 30, 2019 on Tbilisi WPP project concept approval; #2734, December 30, 2019 on Kaspi WPP project concept approval; #2289, November 1, 2019 on Nigoza WPP project concept approval), plus written affirmation to USAID Energy Program by project developers: Infinite Energy (100 MW), Calik Energy (50 MW), Georgian Capital (108 MW total, two projects). Disaggregate(s): • Year of adoption through 2020 – 71 • 2021 through 2025 - 1,006,974 • 2026 through 2030 - 1,677,815 Target vs Result: Investor interest higher than expected and project sizes larger than expected

190,000

(Metric Tons CO2e)

2,684,860

(Metric Tons CO2e)

4. GHG emissions, estimated in metric tons of CO2 equivalent reduced, sequestered, or avoided through clean energy activities supported by USG assistance

Quantity of GHG emissions reduced or sequestered as a result of clean energy projects and policies facilitated by USAID Energy Program

EG.12-6 Documented 3rd party financial closing (GoG Decree #751, dated April 4, 2019 on allocation funds from the state budget); physical construction audited and documented by USAID Energy Program, internal calculation for GHG reduced based on MW supported Financial closing delayed by changes in GoG and COVID-19 Disaggregate(s): None Target vs Result: Financial closing delayed by changes in GoG and COVID-19

3,100

(Metric Tons CO2e)

71

(Metric Tons CO2e)

Annex 2






5. Amount of investment mobilized (in USD) for clean energy as supported by USG assistance

Amount of funds in USD that are forecasted to be invested in new clean energy projects such as in new wind and solar PV farms

EG.12-4 GoG decrees based on prior signed MoUs (#2468, November 28, 2019, on Imereti 1 WPP project concept approval; #2732, December 30, 2019 on Tbilisi WPP project concept approval; #2734, December 30, 2019 on Kaspi WPP project concept approval; #2289, November 1, 2019 on Nigoza WPP project concept approval), plus written affirmation to USAID Energy Program by project developers: Infinite Energy (100 MW), Calik Energy (50 MW), Georgian Capital (108 MW total, two projects). Project developers confirmed their own equity commitment and that debt is available. Equity is only from Austria, Turkey, UK and Georgia. Disaggregate(s): • Private, international - 358,750,000 Target vs Result:Investor interest higher than expected and project sizes larger than expected

80,000,000

(USD)

358,750,000

(USD)

6. Number of individuals reached through outreach campaigns

Number of people that will be reached through several avenues employed by USAID Energy Program, including through mass media, social media, and events

USAID Energy Program’s Facebook page outreach views counted, key Stakeholder’s Facebook views on USAID Energy program related activities counted, number of views of nationally broadcast TV programs for Year 1, estimated by TV stations and confirmed by web-reporting, open house, conferences, workshops and other events where outreach and promotional materials where distributed. Target vs Result: Public TV broadcast was not anticipated and was effective in reaching much broader audience.

10,000

(Number of People)

534,679

(Number of People)

Annex 2






7. Number of people receiving USG supported training in technical energy fields

Number of people within an organization by topic (energy security, energy markets, energy forecasting, etc.) and by gender1

EG.7.3-2 USAID approved agendas, sign-in sheets, and evaluation forms. Each person who attended non-duplicative trainings is counted once for each training they completed. Disaggregate(s): Male - 598 Female - 495 Energy security - 104 Energy markets - 850 Energy forecasting -0 (counted in indicator # 15) Other – 139 Target vs Result: Hands-on training high demand from counterparts to participate in EU style sector reform

40

(Number of people)

1093

(Number of people)

8. Number of promotional plans, campaigns and materials developed and implemented to electricity and gas sectors reforms, and optimize energy investments

Outreach material developed by USAID Energy Program to support the program tasks including energy market development, promotion of new RE investment and energy security improvement for Georgia

USAID-approved promotional materials, internal program records Methods of communication: Press releases - 12 Newsletters - 5 Success stories - 4 Various promotional materials distributed at events (VRE guidebook, one pagers, energy maps, bags, pens, cups, videos) – 22 Target vs Result: High demand from GoG and private sector

24

(Number of promotional

plans…)

43

(Number of promotional

plans…)

9. Number of institutions with increased capacity to implement regulatory impact assessments and/or other analysis

Number of institutions for which USAID Energy Program has trained persons and have better capability to develop RIAs for new legislation

Officials and professional employees participation in formal training programs Target vs Result: High demand from GoG and other state owned entities based on new law mandating RIAs

2

(Number of institutions)

15


1 Since March 2020 due to COVID-19 outbreak most of the trainings were conducted on-line, therefore for this period disaggregated figures by gender are estimated.

Annex 2






10. Number of laws, policies, regulations, or standards addressing clean energy formally proposed, adopted, or implemented as supported by USG assistance

Number of legislative acts supported by USAID Energy Program and adopted by the GoG, GNERC or other relevant institution that support clean energy development

EG.12-3 Written comments and proposed laws, etc., formally conveyed to GoG, Ministries, GNERC Disaggregate(s): National, proposed -13 National, adopted - 3 National, implemented –1 Target vs Result: GoG requested multiple support at different stages of legislative development

10

(legislative acts)

17

(legislative acts)

11. Number of financial institutions, investment companies and/or private investors exposed to non-hydro RE opportunities as supported by USG assistance

Number of financial institutions contacted by USAID Energy Program where the non-hydro Georgian Renewable Energy plants are promoted

Internal Program records on direct contacts, workshops, conferences, networking events Methods of exposure: Financial institutions contacted (15) Donors/embassies for solar off-grid (5) Investment conference attendees (20) (Duplications from multiple methods of exposure were removed to avoid double counting) Target vs Result: Investor interest higher than expected and developers counted as early stage equity investors

10


40


12. Number of research, analytical and white papers conducted including modern modelling and planning tools, among others

Research, analytical and white papers developed by USAID Energy Program relating to variable renewable energy development in Georgia

USAID-approved materials, internal Program records (All reports counted here are not reported in other indicators) Target vs Result: High demand from GoG for research and analysis

10

(Number of documents)

22

(Number of documents)

13. Number of critical energy security issues identified and addressed

Number of critical energy security issues approved by USAID and addressed by USAID Energy Program

USAID-approved materials, internal Program records (All issues counted here are not reported in other indicators) Target vs Result: High demand from GoG for research and analysis

5

(Number of Issues)

11

(Number of Issues)

Annex 2






14. Percentage of energy traded on the competitive market by 2020

Amount of competitive trading in the electricity sector as indicated as the average monthly percent of competitive sales versus total retail sales in the sector

ESCO’s Annual Electricity Balance 2020. Share of the “Direct Customers” (eligible customers) in the total electricity consumption of Georgia. Target vs Result: GoG required large customers to transfer from regulated segment to open market segment sooner than anticipated

10%

(% of total market)

20%

(% of total market)

15. Number of people trained in clean energy supported by USG assistance

Number of attendees of training events held by USAID Energy Program, as members of working groups supported by USAID Energy Program or counterpart staff

EG.12-1

USAID approved agendas, sign-in sheets, evaluation forms Disaggregate(s): Male -141 Female – 59 Target vs Result: Hands-on training high demand from counterparts to participate in EU style sector reform

40

(Number of people)

200

(Number of people)

16. Number of institutions with improved capacity to address clean energy issues as supported by USG assistance

Number of institutions with increased capacity to address clean energy issues as a result of USAID Energy Program assistance

EG.12-2

Officials and professional employees participation in formal training programs Disaggregate(s): National governmental - 14 Target vs Result: Extra demand from government in multiple training topics

6

(Number of Institutions)

14

(Number of Institutions)

17. Number of laws, policies, regulations, or standards to enhance energy sector governance formally proposed, adopted, or implemented as supported by USG assistance

Number of legislative acts. (not related to clean Energy programs) supported by USAID Energy Program and adopted by the GoG, GNERC or other entities

EG.7.3-1 Written comments and proposed laws, etc., formally conveyed to GoG, Ministries, GNERC Disaggregate(s): National, proposed - 21 National, adopted - 4 National, implemented - 3 Target vs Result: GoG requested multiple support at different stages of legislative development

24

(Number of legislative

acts)

28

(Number of legislative

acts)

18. Number of innovations supported through USG assistance

New EG Indicator, added by USAID for FY 2020 reporting. Result is based on studies and workshop on “Hydrogen Economy for Georgia"

STIR-10 USAID-approved materials, reports, workshop presenting innovation Target vs Result: Indicator introduced in the last year of the Program

0

(Number of innovations)

1

(Number of innovations)

Annex 2


ANNEX 2: ENERGY PROGRAM RESULTS FRAMEWORK

Annex 2


ANNEX 3: DEVELOPMENT EXPERIENCE CLEARINGHOUSE (DEC) LIST

Title Publication Date ID Record URL

TASK 1 - Energy Market Development

White Paper on Natural Gas Market Concept Design for Georgia June 12, 2018 PA-00T-5JM https://pdf.usaid.gov/pdf_docs/PA00T5JM.pdf

Natural Gas Market Development Action Plan June 8, 2018 PA-00T-62S https://pdf.usaid.gov/pdf_docs/PA00T62S.pdf

Electricity Sector Reform Action Plan May 31, 2018 PA-00T-6XS https://pdf.usaid.gov/pdf_docs/PA00T6XS.pdf

White Paper on Electricity Market Concept Design of Georgia July 10, 2018 PA-00T-85D https://pdf.usaid.gov/pdf_docs/PA00T85D.pdf

Comments on Draft Energy Law July 13, 2018 PA-00T-85F https://pdf.usaid.gov/pdf_docs/PA00T85F.pdf

Regulatory Review of Draft Power Purchase Agreement August 9, 2018 PA-00T-8XH https://pdf.usaid.gov/pdf_docs/PA00T8XH.pdf

Natural Gas Storage for Georgia: Access Regime and Remuneration Services August 24, 2018 PA-00T-C7F https://pdf.usaid.gov/pdf_docs/PA00TC7F.pdf

Draft Natural Gas Transportation Connection Tariff Methodology July 30, 2018 PA-00T-C7G https://pdf.usaid.gov/pdf_docs/PA00TC7G.pdf

Draft Natural Gas Distribution Connection Tariff Methodology July 30, 2018 PA-00T-C7H https://pdf.usaid.gov/pdf_docs/PA00TC7H.pdf

Comments on Natural Gas Market Concept Design July 9, 2018 PA-00T-C7J https://pdf.usaid.gov/pdf_docs/PA00TC7J.pdf

Gap Analysis Between Draft Energy Law and Grid Code for Gas Market Rules September 19, 2018 PA-00T-C7K https://pdf.usaid.gov/pdf_docs/PA00TC7K.pdf

Transitory Natural Gas Market Rules for Georgia October 23, 2018 PA-00T-DF5 https://pdf.usaid.gov/pdf_docs/PA00TDF5.pdf

Natural Gas Market Rules for an Organized Market September 19, 2018 PA-00T-J79 https://pdf.usaid.gov/pdf_docs/PA00TJ79.pdf

Comparative Analysis of the Developed Concepts for the New Electricity Market in Georgia January 31, 2019 PA-00T-MK7 https://pdf.usaid.gov/pdf_docs/PA00TMK7.pdf

Electricity Sector Reform Action Plan (Y2) March 13, 2019 PA-00T-MK8 https://pdf.usaid.gov/pdf_docs/PA00TMK8.pdf

Natural Gas Market Development Action Plan (Y2) March 13, 2019 PA-00T-MK9 https://pdf.usaid.gov/pdf_docs/PA00TMK9.pdf

Electricity Market Transition Plan April 8, 2019 PA-00W-528 https://pdf.usaid.gov/pdf_docs/PA00W528.pdf

Natural Gas Market Transition Plan May 14, 2019 PA-00W-529 https://pdf.usaid.gov/pdf_docs/PA00W529.pdf

Comments on Energy Strategy of Georgia 2020-2030 October 17, 2019 PA-00W-6W9 https://pdf.usaid.gov/pdf_docs/PA00W6W9.pdf

Review of Electricity Market Design Concept November 12, 2019 PA-00W-FCX https://pdf.usaid.gov/pdf_docs/PA00WFCX.pdf

Electricity Market Reform Communication Plan March 13, 2020 PA-00W-K38 https://pdf.usaid.gov/pdf_docs/PA00WK38.pdf

Comments on Draft Law on Safety of Hydraulic Facilities April 14, 2020 PA-00W-K39 https://pdf.usaid.gov/pdf_docs/PA00WK39.pdf

Draft Electricity Market Operator Service Tariff Methodology July 30, 2018 PA-00X-3N3 https://pdf.usaid.gov/pdf_docs/PA00X3N3.pdf

Draft Natural Gas Supplier of Last Resort Tariff Methodology July 30, 2018 PA-00X-3N4 https://pdf.usaid.gov/pdf_docs/PA00X3N4.pdf

Draft Natural Gas Market Operator Service Tariff Methodology July 30, 2018 PA-00X-3N5 https://pdf.usaid.gov/pdf_docs/PA00X3N5.pdf

Draft Outline on Third Party Access July 30, 2018 PA-00X-3N6 https://pdf.usaid.gov/pdf_docs/PA00X3N6.pdf

Draft Universal Service Supplier Tariff Methodology July 30, 2018 PA-00X-3N7 https://pdf.usaid.gov/pdf_docs/PA00X3N7.pdf

Diagnosis of Approved of Electricity Market Concept Design, EMCD III August 14, 2020 PA-00X-3N8 https://pdf.usaid.gov/pdf_docs/PA00X3N8.pdf

White Paper on Electricity Bilateral Trading May 8, 2020 PA-00X-3N9 https://pdf.usaid.gov/pdf_docs/PA00X3N9.pdf

How to Monitor Electricity Market Financial Settlements October 31, 2020 PA-00X-3NB https://pdf.usaid.gov/pdf_docs/PA00X3NB.pdf

Methodology on Economic Appraisal of Gas Investment Projects September 14, 2020 PA-00X-3NC https://pdf.usaid.gov/pdf_docs/PA00X3NC.pdf

USAID Energy Map (Y2) - JPG Format May 17, 2019 PA-00X-3P3 No PDF Available

USAID Energy Map (Y3) - JPG Format October 4, 2020 PA-00X-3P5 No PDF Available

Analysis and Recommendations for Ten-Year Development Plan for Georgian Gas Transmission Network, 2019-2028

September 30, 2020 PA-00X-4PK https://pdf.usaid.gov/pdf_docs/PA00X4PK.pdf

https://pdf.usaid.gov/pdf_docs/PA00T5JM.pdf

https://pdf.usaid.gov/pdf_docs/PA00T62S.pdf

https://pdf.usaid.gov/pdf_docs/PA00T6XS.pdf

https://pdf.usaid.gov/pdf_docs/PA00T85D.pdf

https://pdf.usaid.gov/pdf_docs/PA00T85F.pdf

https://pdf.usaid.gov/pdf_docs/PA00T8XH.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7F.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7G.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7H.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7J.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7K.pdf

https://pdf.usaid.gov/pdf_docs/PA00TDF5.pdf

https://pdf.usaid.gov/pdf_docs/PA00TJ79.pdf

https://pdf.usaid.gov/pdf_docs/PA00TMK7.pdf



https://pdf.usaid.gov/pdf_docs/PA00W528.pdf


https://pdf.usaid.gov/pdf_docs/PA00W6W9.pdf

https://pdf.usaid.gov/pdf_docs/PA00WFCX.pdf

https://pdf.usaid.gov/pdf_docs/PA00WK38.pdf


https://pdf.usaid.gov/pdf_docs/PA00X3N3.pdf







https://pdf.usaid.gov/pdf_docs/PA00X3NB.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NC.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PK.pdf

Annex 2



Supplier of Last Resort Tariff Methodology September 20, 2018 PA-00X-4PM https://pdf.usaid.gov/pdf_docs/PA00X4PM.pdf

Low Voltage Connection Fee Methodology August 23, 2018 PA-00X-4PN https://pdf.usaid.gov/pdf_docs/PA00X4PN.pdf

High Voltage Connection Fee Methodology August 22, 2018 PA-00X-4PP https://pdf.usaid.gov/pdf_docs/PA00X4PP.pdf

Natural Gas Market Development Action Plan October 22, 2020 PA-00X-4PQ https://pdf.usaid.gov/pdf_docs/PA00X4PQ.pdf

Electricity Sector Reform Action Plan October 22, 2020 PA-00X-4PR https://pdf.usaid.gov/pdf_docs/PA00X4PR.pdf

How to Handle Imbalance Costs for Variable Renewable Energy Generators March 18, 2020 PA-00X-4PS https://pdf.usaid.gov/pdf_docs/PA00X4PS.pdf

Uniform System of Accounting - General Accounting Policy and Procedures for Georgian Regulated Gas Sector Companies, Concept and Principles

May 21, 2019 PA-00X-4PT https://pdf.usaid.gov/pdf_docs/PA00X4PT.pdf

Uniform System of Accounting - Accounting Guidelines for Georgian Regulated Gas Market Companies - Contribution and Grants

May 21, 2019 PA-00X-4PV https://pdf.usaid.gov/pdf_docs/PA00X4PV.pdf

Uniform System of Accounting - Accounting Guidelines for Georgian Regulated Gas Market Companies - Lease

May 21, 2019 PA-00X-4PW https://pdf.usaid.gov/pdf_docs/PA00X4PW.pdf

Accounting Guidelines for Georgian Gas Market Rate Regulated Companies - Property, Plant and Equipment (PP&E)

May 21, 2019 PA-00X-4PX https://pdf.usaid.gov/pdf_docs/PA00X4PX.pdf

Uniform System of Accounting - Accounting Guidelines for Georgian Gas Market Companies - Revenues, Cost Centers and Expenses

May 21, 2019 PA-00X-4PZ https://pdf.usaid.gov/pdf_docs/PA00X4PZ.pdf

Uniform System of Accounting - Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies: Accounts 1000 - 1999

May 21, 2019 PA-00X-4Q1 https://pdf.usaid.gov/pdf_docs/PA00X4Q1.pdf

Uniform System of Accounting - Regulatory Chart of Accounts and Instructions to the Regulatory Chart of Accounts for Georgian Regulated Gas Sector Companies: Accounts 2000, 2100 - 2199











May 21, 2019 PA-00X-4QC https://pdf.usaid.gov/pdf_docs/PA00X4QC.pdf


May 21, 2019 PA-00X-4QF https://pdf.usaid.gov/pdf_docs/PA00X4QF.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PM.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PN.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PP.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PQ.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PR.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PS.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PT.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PV.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PW.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PX.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PZ.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4Q1.pdf






https://pdf.usaid.gov/pdf_docs/PA00X4QC.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4QF.pdf

Annex 2




May 21, 2019 PA-00X-4QH https://pdf.usaid.gov/pdf_docs/PA00X4QH.pdf

Uniform System of Accounting - USoA Reporting Forms for Georgian Gas Sector Companies May 21, 2019 PA-00X-4QK https://pdf.usaid.gov/pdf_docs/PA00X4QK.pdf

Energy Policy Concept of Georgia November 15, 2020 PA-00X-4R7 https://pdf.usaid.gov/pdf_docs/PA00X4R7.pdf

Memo - How to Implement Rooftop Solar Programs March 18, 2020 PA-00X-4R8 https://pdf.usaid.gov/pdf_docs/PA00X4R8.pdf

Reform Delivery Office Recommendation to Government of Georgia November 10, 2020 PA-00X-4R9 https://pdf.usaid.gov/pdf_docs/PA00X4R9.pdf

Concept: Communication Strategy for Energy Market Reform June 5, 2019 PA-00X-55F https://pdf.usaid.gov/pdf_docs/PA00X55F.pdf

TASK 2 - Institutional Strengthening and Capacity Building

Energy Regulatory Impact Assessment Training Plan October 17, 2018 PA-00T-DF3 https://pdf.usaid.gov/pdf_docs/PA00TDF3.pdf

Selection of Institutions to Receive Regulatory Impact Assessment Support October 17, 2018 PA-00T-DF4 https://pdf.usaid.gov/pdf_docs/PA00TDF4.pdf

Regulatory Impact Assessment of Proposed Energy Law on Vulnerable Customers in Georgia

September 20, 2019 PA-00W-52B https://pdf.usaid.gov/pdf_docs/PA00W52B.pdf

Regulatory Impact Assessment of Proposed Energy Law on Electricity Prices May 7, 2019 PA-00W-52C https://pdf.usaid.gov/pdf_docs/PA00W52C.pdf

Regulatory Impact Assessment of Proposed Energy Law on Natural Gas Prices April 10, 2019 PA-00W-52D https://pdf.usaid.gov/pdf_docs/PA00W52D.pdf

Regulatory Impact Assessment on Support Schemes for Renewable Energy November 30, 2019 PA-00W-K35 https://pdf.usaid.gov/pdf_docs/PA00WK35.pdf

Regulatory Impact Assessment on High Mountainous Region Designation of Energy Development and Access

September 25, 2020 PA-00X-3J3 https://pdf.usaid.gov/pdf_docs/PA00X3J3.pdf

Regulatory Impact Assessment on Local Content Requirements in Renewable Energy Industry in Georgia

May 21, 2020 PA-00X-3J4 https://pdf.usaid.gov/pdf_docs/PA00X3J4.pdf

Regulatory Impact Assessment on Opportunities of Unbundling in the Gas Sector June 30, 2020 PA-00X-3J6 https://pdf.usaid.gov/pdf_docs/PA00X3J6.pdf

Regulatory Impact Assessment on the National Energy Strategy July 15, 2020 PA-00X-3J7 https://pdf.usaid.gov/pdf_docs/PA00X3J7.pdf

Regulatory Impact Assessment on the Standards for Community Engagement for New Development Projects

July 24, 2020 PA-00X-3J8 https://pdf.usaid.gov/pdf_docs/PA00X3J8.pdf

Regulatory Impact Assessment on Time of Use Pricing for Households, Businesses and Industry

June 15, 2020 PA-00X-3J9 https://pdf.usaid.gov/pdf_docs/PA00X3J9.pdf

Regulatory Impact Assessment on Ways to Manage the Existing Backlog of Power PPAs and MoUs

July 15, 2020 PA-00X-3JB https://pdf.usaid.gov/pdf_docs/PA00X3JB.pdf

Regulatory Impact Assessment on Choosing New Power Projects for Energy Security or Interconnection

July 22, 2020 PA-00X-3HS https://pdf.usaid.gov/pdf_docs/PA00X3HS.pdf

Sustainable System for Conducting Regulatory Impact Analysis Business Plan of ISET-PI September 28, 2020 PA-00X-4P6 https://pdf.usaid.gov/pdf_docs/PA00X4P6.pdf

TASK 3 - Energy Investment Optimization

Renewable Energy Support Scheme May 8, 2018 PA-00T-4JV https://pdf.usaid.gov/pdf_docs/PA00T4JV.pdf

Database of Proposed Non-Hydro Variable Renewable Energy Projects in Georgia April 27, 2018 PA-00T-4K1 https://pdf.usaid.gov/pdf_docs/PA00T4K1.pdf

Selection Criteria for USAID Energy Program Support of Proposed Non-Hydro Renewable Energy Projects

April 25, 2018 PA-00T-4K3 https://pdf.usaid.gov/pdf_docs/PA00T4K3.pdf

International Best Practices on Support for Renewable Energy Schemes May 18, 2018 PA-00T-54B https://pdf.usaid.gov/pdf_docs/PA00T54B.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4QH.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4QK.pdf

https://pdf.usaid.gov/pdf_docs/PA00X55F.pdf



https://pdf.usaid.gov/pdf_docs/PA00W52B.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52C.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52D.pdf


https://pdf.usaid.gov/pdf_docs/PA00X3J3.pdf






https://pdf.usaid.gov/pdf_docs/PA00X3JB.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HS.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4P6.pdf

https://pdf.usaid.gov/pdf_docs/PA00T4JV.pdf

https://pdf.usaid.gov/pdf_docs/PA00T4K1.pdf


https://pdf.usaid.gov/pdf_docs/PA00T54B.pdf

Annex 2



Final Selection of Ten Renewable Energy Businesses to Receive USAID Energy Program Technical Assistance

May 31, 2018 PA-00T-85K https://pdf.usaid.gov/pdf_docs/PA00T85K.pdf

Preliminary Review and Analysis of Gori Substation and Ability to Connect the Proposed GEDF CALIK Wind Farm

May 1, 2018 PA-00T-4K5 https://pdf.usaid.gov/pdf_docs/PA00T4K5.pdf

Comments on the Draft National Renewable Energy Action Plan August 17, 2018 PA-00T-C7N https://pdf.usaid.gov/pdf_docs/PA00TC7N.pdf

Survey Results and Consensus on Selected Support Schemes for Renewable Energy January 18, 2019 PA-00T-J7B https://pdf.usaid.gov/pdf_docs/PA00TJ7B.pdf

Recommendations on the Connection of Imereti 1 Wind Power Plant to the Georgian Transmission System

March 11, 2019 PA-00T-MKB https://pdf.usaid.gov/pdf_docs/PA00TMKB.pdf

Midterm Report on Solar Photovoltaic System Project for Off-Grid Settlements March 12, 2019 PA-00T-MKC https://pdf.usaid.gov/pdf_docs/PA00TMKC.pdf

Legal Procedures Applied to Bio-Gas Power Plant Project April 4, 2019 PA-00T-NCM https://pdf.usaid.gov/pdf_docs/PA00TNCM.pdf

Recommendations on Environmental Decision Procedures for Bio-Gas Power Plant Project April 4, 2019 PA-00T-NCN https://pdf.usaid.gov/pdf_docs/PA00TNCN.pdf

Recommendations to Promote Funding Opportunities of the Project Hybrid Energy Station in Borjomi Municipality

January 14, 2019 PA-00W-7DQ https://pdf.usaid.gov/pdf_docs/PA00W7DQ.pdf

National Environmental Requirements for Variable Renewable Energy Projects July 29, 2019 PA-00W-52F https://pdf.usaid.gov/pdf_docs/PA00W52F.pdf

Recommendations on Renewable Energy Support Schemes April 5, 2019 PA-00W-52G https://pdf.usaid.gov/pdf_docs/PA00W52G.pdf

Renewable Energy Investor Guidebook July 23, 2019 PA-00W-52H https://pdf.usaid.gov/pdf_docs/PA00W52H.pdf

Wind Energy and Specially Protected Areas September 26, 2019 PA-00W-52J https://pdf.usaid.gov/pdf_docs/PA00W52J.pdf

Pricing to Support Development of the Variable Renewable Energy in Georgia November 27, 2019 PA-00W-K37 https://pdf.usaid.gov/pdf_docs/PA00WK37.pdf

Advice to the Developer on Legal Procedures on Authorization and Licenses for 54 MW Kaspi Wind Power Plant

November 5, 2020 PA-00X-3NG https://pdf.usaid.gov/pdf_docs/PA00X3NG.pdf

Advice to the Developer on Legal Procedures on Authorization and Licenses for 100 MW Imereti 1 Wind Power Plant

October 30, 2020 PA-00X-3NH https://pdf.usaid.gov/pdf_docs/PA00X3NH.pdf

Agreement on Grid Interconnection for Generation and Distribution Companies October 16, 2020 PA-00X-3NJ https://pdf.usaid.gov/pdf_docs/PA00X3NJ.pdf

Comments on the Draft Agreement Between Government of Georgia and LKS Solar LLC September 24, 2020 PA-00X-3NK https://pdf.usaid.gov/pdf_docs/PA00X3NK.pdf

Corporate Guaranteed Power Purchase Agreement September 9, 2020 PA-00X-3NM https://pdf.usaid.gov/pdf_docs/PA00X3NM.pdf

Legal Procedures on Authorization and Licenses for 7 MW Plavi Solar Power Plant September 30, 2020 PA-00X-3NN https://pdf.usaid.gov/pdf_docs/PA00X3NN.pdf

Mid-Term Report on Training Trips to Off-Grid Settlements May 25, 2020 PA-00X-3NP https://pdf.usaid.gov/pdf_docs/PA00X3NP.pdf

Recommendations on Power Generation Infrastructure Construction Permitting Rules October 25, 2020 PA-00X-3NR https://pdf.usaid.gov/pdf_docs/PA00X3NR.pdf

Review of the Feasibility Study of Marneuli Solar Power Plant and Recommendation on the Connection to the Georgian Transmission System

August 19, 2020 PA-00X-3NS https://pdf.usaid.gov/pdf_docs/PA00X3NS.pdf

Solar Photovoltaic Systems for Off-Grid Houses in Georgia June 30, 2020 PA-00X-3NW https://pdf.usaid.gov/pdf_docs/PA00X3NW.pdf

The Authorization Checklists for Variable Renewable Energy April 29, 2020 PA-00X-3NZ https://pdf.usaid.gov/pdf_docs/PA00X3NZ.pdf

Legal Procedures Applied to Projects not Related to PPP Legislation July 24, 2019 PA-00X-3P1 https://pdf.usaid.gov/pdf_docs/PA00X3P1.pdf

Comments on Draft Law of Georgia on Promoting the Production and Use of Energy from Renewable Sources

September 20, 2018 PA-00X-4P7 https://pdf.usaid.gov/pdf_docs/PA00X4P7.pdf

Analysis of Identified Issues and Barriers Addressing to Renewable Energy Development October 27, 2019 PA-00X-4P8 https://pdf.usaid.gov/pdf_docs/PA00X4P8.pdf

2 MW Karaleti Solar Power Project July 25, 2020 PA-00X-4P9 https://pdf.usaid.gov/pdf_docs/PA00X4P9.pdf

7 MW Kvernaki Solar Power Project July 25, 2020 PA-00X-4PB https://pdf.usaid.gov/pdf_docs/PA00X4PB.pdf

7 MW Plavi Solar Power Project July 25, 2020 PA-00X-4PC https://pdf.usaid.gov/pdf_docs/PA00X4PC.pdf

https://pdf.usaid.gov/pdf_docs/PA00T85K.pdf


https://pdf.usaid.gov/pdf_docs/PA00TC7N.pdf

https://pdf.usaid.gov/pdf_docs/PA00TJ7B.pdf

https://pdf.usaid.gov/pdf_docs/PA00TMKB.pdf

https://pdf.usaid.gov/pdf_docs/PA00TMKC.pdf

https://pdf.usaid.gov/pdf_docs/PA00TNCM.pdf

https://pdf.usaid.gov/pdf_docs/PA00TNCN.pdf

https://pdf.usaid.gov/pdf_docs/PA00W7DQ.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52F.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52G.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52H.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52J.pdf


https://pdf.usaid.gov/pdf_docs/PA00X3NG.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NH.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NJ.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NK.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NM.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NN.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NP.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NR.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NS.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NW.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3NZ.pdf





https://pdf.usaid.gov/pdf_docs/PA00X4PB.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PC.pdf

Annex 2



50 MW Marneuli Solar Power Project with Battery Storages July 25, 2020 PA-00X-4PF https://pdf.usaid.gov/pdf_docs/PA00X4PF.pdf

Identification of Financing Sources for Variable Renewable Energy Projects in Georgia June 4, 2020 PA-00X-4PG https://pdf.usaid.gov/pdf_docs/PA00X4PG.pdf

List of Variable Renewable Energy Businesses to Receive USAID Energy Program Technical Assistance

September 15, 2020 PA-00X-4PH https://pdf.usaid.gov/pdf_docs/PA00X4PH.pdf

Recommendations on the Administrative Procedures for Signing of the Agreements on Development of the Renewable Power Plants in Georgia

September 20, 2020 PA-00X-4PJ https://pdf.usaid.gov/pdf_docs/PA00X4PJ.pdf

Final Report on Training Trips to Off-Grid Settlements October 15, 2020 PA-00X-4S4 https://pdf.usaid.gov/pdf_docs/PA00X4S4.pdf

Advice to the Developer on Legal Procedures on Authorization and Licenses for 54 MW Tbilisi Wind Power Plant

November 10, 2020 PA-00X-4S6 https://pdf.usaid.gov/pdf_docs/PA00X4S6.pdf

TASK 4 - Grid Integration of Variable Energy Resources

Available Variable Renewable Energy Forecasting Tools and Methodologies May 16, 2018 PA-00T-85M https://pdf.usaid.gov/pdf_docs/PA00T85M.pdf

Initial Assessment of Variable Renewable Energy Forecasting Infrastructure August 22, 2018 PA-00T-8XG https://pdf.usaid.gov/pdf_docs/PA00T8XG.pdf

Legislation Assessment for Variable Renewable Energy Forecasting September 10, 2018 PA-00T-C7M https://pdf.usaid.gov/pdf_docs/PA00TC7M.pdf

Variable Renewable Energy Forecasting System Design and Implementation Plan February 4, 2019 PA-00T-MKD https://pdf.usaid.gov/pdf_docs/PA00TMKD.pdf

Draft Amendment on Grid Code May 4, 2020 PA-00X-3HQ https://pdf.usaid.gov/pdf_docs/PA00X3HQ.pdf

Georgian Wind Forecasting Project: Report on Required Infrastructure, Works and Cost Assessment to Increase the Forecasting Accuracy

October 30, 2020 PA-00X-3HR https://pdf.usaid.gov/pdf_docs/PA00X3HR.pdf

TASK 5 - Strategic Advisory Assistance to the GoG to Increase Energy Security

Critical and Timely Issues for Georgia’s Energy Security April 27, 2018 PA-00T-4JQ https://pdf.usaid.gov/pdf_docs/PA00T4JQ.pdf

Review of Current Georgian Legislation on Energy Security Issues and Energy Community Requirements

May 25, 2018 PA-00T-4JX https://pdf.usaid.gov/pdf_docs/PA00T4JX.pdf

Three-Year Energy Security Roadmap Matrix for Georgia May 4, 2018 PA-00T-4JZ https://pdf.usaid.gov/pdf_docs/PA00T4JZ.pdf

Enguri Hydro Power Plant - Issues and Priorities for Energy Security and Reliability March 18, 2019 PA-00W-52K https://pdf.usaid.gov/pdf_docs/PA00W52K.pdf

Cost Estimation Study of Gas Pipeline Network and Alternative Systems for High-Mountainous Settlements of Georgia

December 30, 2019 PA-00W-FFP https://pdf.usaid.gov/pdf_docs/PA00WFFP.pdf

Georgia Resource Adequacy Study September 30, 2019 PA-00X-1F1 https://pdf.usaid.gov/pdf_docs/PA00X1F1.pdf

Critical and Timely Issues for Georgia's Energy Security October 30, 2020 PA-00X-3HV https://pdf.usaid.gov/pdf_docs/PA00X3HV.pdf

Hydrogen Energy Storage for Georgia September 25, 2020 PA-00X-3HW https://pdf.usaid.gov/pdf_docs/PA00X3HW.pdf

The Role and Place of Hydrogen Energy in the Sustainable Development of the Energy Sector and Economy of Georgia

September 16, 2020 PA-00X-3HX https://pdf.usaid.gov/pdf_docs/PA00X3HX.pdf

Energy Security in Georgia - Assessment and Future Challenges April 23, 2019 PA-00X-4NZ https://pdf.usaid.gov/pdf_docs/PA00X4NZ.pdf

Upgrading PLMS/GCAP Software November 16, 2020 PA-00X-4P3 https://pdf.usaid.gov/pdf_docs/PA00X4P3.pdf

Cross Cutting

Donor Coordination Matrix May 4, 2018 PA-00T-4JT https://pdf.usaid.gov/pdf_docs/PA00T4JT.pdf

Training Plan (Y1) April 25, 2018 PA-00T-4K8 https://pdf.usaid.gov/pdf_docs/PA00T4K8.pdf

Training Plan (Y2) September 4, 2018 PA-00W-545 https://pdf.usaid.gov/pdf_docs/PA00W545.pdf

Training Plan (Y3) November 11, 2019 PA-00X-3Q9 https://pdf.usaid.gov/pdf_docs/PA00X3Q9.pdf

Quarterly Report Nov 29, 2017 - Feb 28, 2018 March 15, 2018 PA-00T-KH3 https://pdf.usaid.gov/pdf_docs/PA00TKH3.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PF.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PG.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PH.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4PJ.pdf

https://pdf.usaid.gov/pdf_docs/PA00T85M.pdf

https://pdf.usaid.gov/pdf_docs/PA00T8XG.pdf

https://pdf.usaid.gov/pdf_docs/PA00TC7M.pdf

https://pdf.usaid.gov/pdf_docs/PA00TMKD.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HQ.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HR.pdf

https://pdf.usaid.gov/pdf_docs/PA00T4JQ.pdf

https://pdf.usaid.gov/pdf_docs/PA00T4JX.pdf

https://pdf.usaid.gov/pdf_docs/PA00T4JZ.pdf

https://pdf.usaid.gov/pdf_docs/PA00W52K.pdf

https://pdf.usaid.gov/pdf_docs/PA00WFFP.pdf

https://pdf.usaid.gov/pdf_docs/PA00X1F1.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HV.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HW.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3HX.pdf

https://pdf.usaid.gov/pdf_docs/PA00X4NZ.pdf


https://pdf.usaid.gov/pdf_docs/PA00T4JT.pdf




https://pdf.usaid.gov/pdf_docs/PA00TKH3.pdf

Annex 2



Quarterly Report Mar 1, 2018 - May 31, 2018 June 15, 2018 PA-00T-KH4 https://pdf.usaid.gov/pdf_docs/PA00TKH4.pdf

Quarterly Report Oct 1, 2018 - Dec 31, 2018 January 15, 2019 PA-00T-KH5 https://pdf.usaid.gov/pdf_docs/PA00TKH5.pdf

Quarterly Report Jan 1, 2019 - Mar 31, 2019 April 15, 2018 PA-00W-52Q https://pdf.usaid.gov/pdf_docs/PA00W52Q.pdf

Quarterly Report Apr 1, 2019 - Jun 30, 2019 July 15, 2019 PA-00W-53Z https://pdf.usaid.gov/pdf_docs/PA00W53Z.pdf

Quarterly Report Oct 1, 2019 - Dec 31, 2019 January 15, 2020 PA-00X-3PX https://pdf.usaid.gov/pdf_docs/PA00X3PX.pdf

Quarterly Report Jan 1, 2020 - Mar 31, 2020 April 15, 2020 PA-00X-3Q4 https://pdf.usaid.gov/pdf_docs/PA00X3Q4.pdf

Quarterly Report Apr 1, 2020 - Jun 30, 2020 July 15, 2020 PA-00X-3Q8 https://pdf.usaid.gov/pdf_docs/PA00X3Q8.pdf

Annual Report - Year 1 October 26, 2018 PA-00T-KH6 https://pdf.usaid.gov/pdf_docs/PA00TKH6.pdf

Annual Report - Year 2 October 31, 2019 PA-00W-6WB https://pdf.usaid.gov/pdf_docs/PA00W6WB.pdf

Annual Report - Year 3 October 31, 2020 PA-00X-3PW https://pdf.usaid.gov/pdf_docs/PA00X3PW.pdf



https://pdf.usaid.gov/pdf_docs/PA00W52Q.pdf

https://pdf.usaid.gov/pdf_docs/PA00W53Z.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3PX.pdf




https://pdf.usaid.gov/pdf_docs/PA00W6WB.pdf

https://pdf.usaid.gov/pdf_docs/PA00X3PW.pdf

Annex !

USAID Energy Program

Deloitte Consulting Overseas Projects LLP

Address: 29 I. Chavchavadze Ave.,0179, Tbilisi, Georgia

Phone: +(995) 595 062505

E-mail: [email protected]

USAID ENERGY PROGRAM FINAL REPORT

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