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Official Name:

National Designated Entity

Type of organisation:
Ms.Maia Tskhvaradze
Acting Head of Climate Change Division
+995 322 47 01 01

Energy profile

Georgia (2012)

Energy profile
Energy profile
Extent of network

Georgia has very well developed electricity network. Actually 100% of populated area of the country has access to the electricity network.

Renewable energy potential

There is a vast untapped potential of Energy Efficiency (EE) and Renewable Energy (RE) in Georgia that has to be incorporated in energy security improvements. In fact, Georgia has one of the largest undeveloped hydro power potentials in the world at about 32 TWh per year. Georgia’s potential hydro power production is roughly 7.27 MWh per capita, which is considerably higher than that of the world’s biggest hydro power producers, Norway and Canada.  The economically achievable annual potential of renewable energy sources (RES) can be estimated as: small hydro – 5 TWh, wind – 5 TWh, biomass – 3–4TWh, solar – 60–120 GWh, geothermal – 0.8 TWh. However, the share of RE is still only a few percent in Georgia’s energy balance.  By far the hydro electric potential is the main prospective resource of domestic energy. According to various estimates there is a possibility to economically develop about 20–30TWh of annual generation.Adoption of RE & EE legislation would be a strong factor in support of developing these resources. Development of this resource offers the potential for cooperation in this field with neighbouring countries that are facing the similar challenges.

Energy framework

Georgia currently has no special legislative acts to regulate the use of renewable energy sources. The Tax Code enacted in 2005 does not provide any tax benefits for the production and use, import and putting equipment into operation for the production of renewable energy or power saving equipment. The existing law on electricity and gas does not include renewable energy sources explicitly. Goals for renewables have been developed, however.Georgia ratified the UN climate change agreements in 1994, established a National Climate Protection Program in 1996, and acceded to the Kyoto Protocol in 1999. Consequently the conditions for participating in measures within the framework of the Clean Development Mechanism are in place. Initial proposals for CDM projects in the wind sector are already on hand.Renewable Energy 2008 State ProgramInvestors can benefit from the incentives provided through the Renewable Energy 2008 State Program. Under the program, new Hydro Power Plants up to 100 MW are offered a guaranteed purchasing agreement with ESCO for the first 10 years of operation in which the tariff can be negotiated between the investor and GNEWRC. Alternatively, SHPP operators, i. e. HPPs with a capacity up to 10 MW, have the opportunity to sell electricity directly to consumers at tariffs negotiated bilaterally or even to export without the need for an export license. In any case, however, operators have to agree to supply only domestic customers during the three winter months in a year.USAID project "New Applied Technology Efficiency and Lightning Initiative”Goal is to convince Georgia's large energy consumers - hospitals, condominium associations and others - to use special materials and facilities to decrease energy consumption and accordingly cut expenses.USAID Project “Clean Energy for internally displaced person (IDP)” Assessment of the social, technical, economic and environmental aspects of the introduction of renewable energy and energy saving solutions in the newly constructed or rehabilitated houses for the IDPs.Energy Efficiency Programme for Georgian Communities- Energy Bus ProjectUrban Heating and Residential Energy Efficiency for Utility Affordability in the Republic of Georgia USAID-approved research outline for the studies on Urban Heating and Residential Energy Efficiency for Utility Affordability in the Republic of Georgia, which will be developed under the World Learning/USAID Energy Sector Grant Program.

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