In June, Buyers Have More Opportunities to Trade on the Exchange

In the transitional market model, May and June are particularly interesting periods for electricity trading on Georgia’s Energy Exchange. From the beginning of June, the dynamics of existing activity show that the opportunity for buyers to purchase electricity is increasing.

In May, total electricity consumption in the country amounted to 1,122,358 MWh, while the demand placed on the exchange was only 74,010.9 MWh, and trading was concluded for just 37,607.2 MWh. At the beginning of June, the situation changed. Whereas the market had previously been in deficit, during the past period in June, supply exceeded demand by an average of 55%. The data clearly shows that buyers are not fully utilizing the energy offered on the exchange, even though they have the opportunity to purchase electricity at favorable prices.

Regarding prices, although there was slight fluctuation at the end of May, the increase in supply in June has once again reduced the average price, which currently stands at 126 GEL/MWh. At this stage, this is the price at which the largest volume of energy is being offered by producers. As the supply on the exchange increases, the price difference between supply and demand bids has significantly widened, which gives buyers the opportunity to purchase electricity under maximally favorable conditions. During this period, increased buyer activity on the exchange will enhance their chances for successful trading.

As an illustration, the diagram shows the supply-demand curve for the delivery period of 01/06/2025 from 20:00 to 21:00. It is clear from the diagram that for this specific delivery period, sellers were unable to fully sell the offered energy. Buyers had the opportunity to purchase an additional 28.1 MWh of electricity at a price of 126.01 GEL/MWh. Similar situations are observed in other hours as well. Detailed information is available on the GENEX website.

Today’s trend clearly shows: the market is currently more favorable for buyers. Those who act now will be able to take advantage of the best market conditions and gain economic benefit.