Electricity Market Watch - Summary of 2020 and 1Q21

Electricity consumption was down by 4.9% y/y in 2020, caused by lockdowns and related reduction in economic activity due to Covid-19 pandemic. Despite reduced electricity consumption, import of electricity and thermal generation remained flat, needed to fill the winter deficit and compensate the drop in hydro generation caused by bad hydrological conditions. Electricity consumption was up by 3.1% y/y in 1Q21, reflecting gradual recovery in economic activity and last year’s low base. Supply mix of 1Q21 was mainly dictated by closure of Enguri HPP for maintenance works for 3 months. Reduced hydro supply was mainly balanced by doubled volume of electricity imports (+93.2% y/y). To satisfy the need of Abkhazian region, traditionally satisfied from Enguri’s generation, additional import from Russia through Salkhino interconnection line was made.