The launch of the energy exchange amid the ongoing Russia’s war in Ukraine carries threats and the process may be postponed despite technical readiness, Georgian Economy Minister Levan Davitashvili said on Monday, following the Government meeting. 

In his comments, Davitashvili said that Georgia had used the experience of several, “large” European unions for energy exchange and was technically ready to launch the process. However, the Minister noted that “today is not the best time for the market to function in a free mode, because the general situation in the region is very challenging”. 

"We have seen a very unstable and unpredictable situation regarding energy resources and prices, which have risen sharply. When the whole European Union says that they do not know what kind of winter it will be, we think it is too risky to introduce a free trade regime for electricity”, Davitashvili said. 

The full operation of the energy exchange in Georgia should have started on July 1, 2021. It was first postponed until January 1, 2022, and then until March 1, although it did not take effect on March 1 either.

Currently, the reform is scheduled to start in September 2022. If the energy exchange comes into play, the electricity sales and purchase price for the players on the exchange will be determined as a result of supply and demand in the free market.