The volume of electricity exports from Armenia to Georgia has dropped significantly in 2024.
According to Armenia’s Public Services Regulatory Commission, approximately 73 million kWh of electricity has been exported this year. In contrast, exports reached a record 365 million kWh in 2022 and about 145 million kWh in 2023. Meanwhile, Armenia imports up to 100 million kWh of electricity from Georgia annually.
Since 2022, when Armenia’s electricity market began transitioning to a liberal model, exports to Georgia have increased. However, total electricity trade in both directions remains around 200 million kWh per year, except for the record-breaking 2022, reports Sputnik Armenia.
In 2024, Armenia’s total electricity production reached 9.2 billion kWh, while Georgia generated 14.2 billion kWh. This means the two countries exchange only 1% of their total production.
The primary obstacle to increasing trade is infrastructure limitations. Armenia’s and Georgia’s power systems operate in isolation—Armenia’s grid is synchronized with Iran, while Georgia’s is linked to Russia. As a result, when Georgia wants to buy electricity from Armenia, it must temporarily disconnect part of its grid, adjust the frequency, and then reconnect it to the main system.
A border substation is needed to bridge the two systems. It would include a direct current (DC) interconnector, allowing real-time electricity exchange without extra adjustments. The German KfW Bank was expected to finance this project, but previous tenders were unsuccessful, and there is no clear timeline for a new bidding process.
Georgia already has similar infrastructure with Turkey, significantly increasing their electricity exchange capacity. This means Georgia could, in theory, re-export Armenian electricity to Turkey, depending on market prices.
Armenian and Georgian authorities are discussing free electricity trade to remove bureaucratic barriers. However, this would require not only the substation's construction but also the installation of a new high-voltage transmission line.
