Economic Analysis of Armenia - Georgia Interconnection
Client: USEA, USAID
Finishing date: October 2020.
Type: Study (Market, Transmission)
Team: Dragana Orlic - Project Manager, M. Ivanovic, B. Lekovic, B. Lutovac
The aim of the study is to evaluate technical and economic feasibility of the Armenia - Georgia HVDC interconnection (B2B). Perspective period between 2025 and 2030 is in main study focus, with analysis being conducted under different scenarios of Armenia, Georgia and other South Caucasus countries development.
For the purpose of evaluation of economic feasibility of the project, electricity market analysis, grid calculations and economic analysis are performed. For the needs of electricity market and grid analysis, electricity market and grid models that includes Georgia, Armenia and Turkey was developed including South Caucasus region. The aim of market and network simulations was to assess the market indicators, changes in losses and potential benefits for Georgia and the region from project commissioning. Additional benefits from cross-border balancing cooperation with reserve sharing model have been assessed too.
Economic analyses gave main economic indicators – EIRR and NPV. For electricity market analysis, professional and commercial software tool package was used – Antares. For grid analysis, professional and commercial software tool package was used – PSS/E.
Type of services provided:
- Electricity market modeling of Georgia, Armenia and Turkey with South Caucasus region as spot markets
- Electricity market analyses
- Grid calculation with the aim to determine the impact on losses
- Economic feasibility assessment of the HVDC Georgia – Romania interconnection project