Hydropower Investment Promotion Project (HIPP) - Georgia Capacity Allocation Auction Rules

However, due to the asynchronous nature of the Georgia-Turkey interconnection and the requirement to give priority to renewable resources, there are some differences. The auctions for the Greece-Turkey interconnection are for both imports and exports during the relevant time period, whereas the Interconnection Operation Agreement between GSE and TEIAS refers to only exports from the exporting country in a month. The restriction on imports and exports in a month may be examined, as there could be a possibility that Georgia may want to import energy at times while having export transactions to Turkey for other parts of the month. Reviewing the technical capabilities of the HVDC interconnection may also be beneficial to allow for both import and export schedules in a month. Simultaneous imports and exports are possible, with physical flow in one direction and contractual netting to facilitate such transactions. New renewable energy projects in Georgia have been granted long-term interconnection capacity rights through Transmission and Dispatch Agreements. As a result, the amount of auctioned capacity will reflect ATC minus the capacity allocated to these renewable energy projects. Discussions will take place among the interested parties as to the means of allocating interconnection capacity to new renewable energy projects. For the purpose of this document, it is assumed that each new renewable resource has been granted CTRs in an amount equal to the amount of capacity it sells under an export sales agreement for that year and/or month up to the capacity of the generating plant. The auctions would offer the remaining capacity to bidders. The auctions will be conducted annually, monthly, and daily, with the annual auction determining the overall capacity to be allocated. The monthly auctions will allocate the capacity for the upcoming month, and the daily auctions will allocate the remaining capacity for the day. The auction website will provide information on the auction process, and bidders will be required to register and provide bank guarantees. The auction proceedings will be conducted in accordance with the auction specifications, which include the bid format and bid limitations. The determination of auction results will be based on the awarding of CTRs to the highest bidder. The secondary CTR market will allow for the resale of CTRs in daily auctions. The capacity usage rules will require notification to the TSO of the counterparties and CTR usage. The settlement and payment rules will govern the settlement of CTRs, including invoices and payment, invoice disputes, payment conditions, late payment, and interest on arrears. Payments by the TSO to CTR holders will be made in accordance with the payment conditions. The exclusion of setoff will apply, and information and notices will be provided to the bidders. The limitation of liability, confidentiality, severability, disputes and applicable law, force majeure, amendments, and acknowledgment of receipt will also be governed by the auction rules.