Economic Analysis of Georgia – Romania Interconnection (Phase I and Phase II)

Phase I and Phase II:

The aim of the study was to evaluate technical and economic feasibility of the Georgia – Romania HVDC interconnection through investigations of several scenario with different assumptions. Scenarios in Phase 2 were developed on the basis of results and conclusions from Phase 1.

In Phase 1, perspective period between 2025 and 2035 was in study focus, with analysis being conducted under different scenarios of Georgia and other South Caucasus countries development, while in Phase 2, the analysed period was extended to 2040.

For the purpose of evaluation of economic feasibility of the project, electricity market analysis and economic analysis were performed in both Phases. For the needs of electricity market analysis, electricity market model that includes Georgia, Armenia, Azerbaijan and Romania was developed with South East Europe modeled as spot market. The aim of market simulations was to assess the market indicators and potential benefits for Georgia and the region from project commissioning. Economic analyses gave main economic indicators – EIRR and NPV. For electricity market analysis, professional and commercial software tool package was used – Antares.

Type of services provided:

Phase I and Phase II:

• Electricity market modeling of Georgia, Armenia, Azerbaijan and Romania with South East Europe as spot markets for the period till 2040
• Electricity market and economy assessment of benefits of the HVDC Georgia – Romania interconnection
• Economic feasibility assessment of the HVDC Georgia – Romania interconnection project