Electrical Power Systems Reforms

Evaluating Georgia's Electrical Energy System

By 2002, the Republic of Georgia's electricity systems were in disarray. The government needed to better assist their under-served populations. People were dying in the winter months.

In 2003, a US-based consulting group began implementing the US$33 million Georgia Energy Security Initiative (GESI).

Senior Energy Analyst of NRGmagnet, Hans Jansen, was contracted by USAID to be the Team Leader for the three Evaluation Teams that reviewed the GESI project upon its conclusion.

Since the GESI had operated some years, program funder USAID wanted an impact assessment of the program at the national level and (from an energy perspective) an analysis of the realized benefits for the people of Georgia.

To do this, Mr. Jansen's team visited three regions, four municipalities, seven branch business service offices, and three hydropower plants, gathering data and interviewing local stakeholders and project participants.

Their findings concluded that GESI's distribution reforms and commercialisation tactics had indeed been substantial. The GESI program's Credit Facility had provided US$4.2 million in technical assistance, grants, and loans.

And by providing a winter heating assistance program, the GESI positively impacted under-served populations and achieved the objective of the project to aid the community.

In fact, stakeholders reported that the heating program had had immediate effects at the most critical time-the harsh Georgian winter.

Some said the program literally saved their lives. The winter heating program also indirectly helped the cash-flow situation for the fledgling utilities.

Today, the GESI program is a model for power system reform activities in other utilities and is being replicated throughout the region.

 

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