Gap Analysis and Capacity Building Action Plan of Georgian Electricity Market Participants

In September 2014, Georgia signed the EU-Georgia Association Agreement, and in October 2016, the Accession Protocol to the Energy Community Treaty. As a member of the Energy Community, Georgia is obligated to establish an EU-compliant electricity market. The main directive, 2009/72/EC, defines the rules related to the organization and functioning of the electricity sector and open access to the market. The new energy legislation transposing the Third Energy Package has been sent to the Parliament of Georgia and is expected to be adopted by 2019. The implementation of these obligations is crucial for the Georgian energy sector's development, but it represents a challenge for electricity producers and consumers to adapt to new market rules and acquire new skills. Georgian electricity market participants, including electricity producers and consumers at a wholesale level, need to acquire new tools, knowledge, and skills to conduct modern electricity trading and related risk mitigation actions. A survey was conducted by the Association of Young Professionals in Energy of Georgia (AYPEG) with the financial support from USAID Governing for Growth (G4G) in Georgia project. The survey aimed to identify technical and human capacity gaps among Georgian wholesale electricity market participants and propose capacity building activities to alleviate the identified gaps. Face-to-face interviews were conducted with Georgian electricity market participants to assess their current human and technical capacity and their preparedness to adapt to new market conditions. The survey results revealed gaps in human and technical capacity among Georgian electricity market participants. The report provides an assessment of Georgian electricity market participants' awareness about the ongoing reforms and their expectations. The survey findings are presented in four sections: a survey of Georgian wholesale electricity market participants, focus groups, international experience, and a summary of main findings. The survey methodology was developed in collaboration with G4G, and the implementation process was divided into seven major phases. The project started in November 2018 and was completed in six and a half months. The survey incorporated face-to-face interviews with Georgian electricity market participants, two focus groups, and interviews with relevant international organizations with experience in electricity market reforms. The capacity building action plan was developed based on the survey results. The plan aims to alleviate the identified gaps in human and technical capacity among Georgian electricity market participants. The plan includes training programs, workshops, and other capacity building activities to enhance the skills and knowledge of electricity market participants. The report provides information on the survey methodology, survey results, and the capacity building action plan. The English and Georgian versions of the questionnaire are provided in the annexes. The report is organized into five sections: introduction, summary of project activities, survey design and methodology, survey findings, and capacity building action plan. The survey findings indicate that Georgian electricity market participants face challenges in adapting to new market rules and acquiring new skills. The report highlights the need for capacity building activities to enhance the skills and knowledge of electricity market participants. The capacity building action plan aims to address the identified gaps in human and technical capacity and support the development of a liberalized, competitive electricity market in Georgia. The report provides a comprehensive overview of the survey methodology, survey results, and the capacity building action plan. The report is a valuable resource for stakeholders involved in the development of the Georgian electricity market, including government institutions, civil society organizations, and international organizations.