Overview of Georgia's energy sector

Published at 01/07/2020

Overview of Georgia's energy sector — Advices from experts and reviews of real estate on GEOLN.COM. Photo 1

STRONG DEMAND GROWTH PROSPECTS

  • Domestic Demand growth, which is expected to grow in line with GDP, requires an extension of Power generation by around 65% until 2025 
  • Georgia is surrounded by countries with a projected structural power deficit (e.g. Turkey, Southern Districts of Russia) or expensive power generation, opening up attractive export opportunities

HUGE UNTAPPED POTENTIAL 

  • 75% of economically viable hydropower potential not yet exploited (Approximately 30TWh) 
  • There are 96 potential HPP projects (<100MW) on the Pre-feasibility Study Level with Financial and Technical projection are available for investors 
  • In addition to hydro, there is considerable generation potential from wind, solar and other renewable sources

LIBERALIZED AND DEREGULATED MARKET

  • Renewable projects are based on Build-Own-Operate (BOO) principle
  • No tariff set for the newly built Renewable energy Plants- investor is free to choose the market and negotiate the price 
  • New and simplified rules for development of renewable energy projects

SOME LARGE PROJECTS ARE ALREADY UNDERWAY AND EVEN MORE ARE COMING 

  • 23 Newly Constructed Power Plants – Total installed capacity is 791 MW and Total investment is 1.2 bln.USD 
  • 42 Hydropower plant projects are in the construction and licensing phase - Total installed capacity is 1,455 MW and Total Planed Investment is 2.6 bln.USD 
  • 105 renewable energy projects, including hydro, solar and wind are on the
  • feasibility study stage Total installed capacity is 3,738 MW and Total estimated

DOMESTIC DEMAND GROWTH REQUIRES AN EXTENSION OF POWER GENERATION

Overview of Georgia's energy sector — Advices from experts and reviews of real estate on GEOLN.COM. Photo 2

GEORGIA IS SURROUNDED BY COUNTRIES WITH A STRUCTURAL

POWER DEFICIT OR EXPENSIVE POWER GENERATION

Overview of Georgia's energy sector — Advices from experts and reviews of real estate on GEOLN.COM. Photo 3

1 Assuming current consumption and supply pattern

2 This does not even include countries with heavily subsidized electricity generation (e.g. Azerbaijan, Kazakhstan)

INVESTMENT OPPORTUNITIES

Overview of Georgia's energy sector — Advices from experts and reviews of real estate on GEOLN.COM. Photo 4HYDRO POWER

  • Georgia is one of the top countries in terms of water resources per capita 
  • Today 78% of total electricity is generated from Hydro Power Plants 
  • Georgia could produce additional 30 TWh annually with hydro resources alone. 
  • There are over 98 potential HPP projects on the Pre-feasibility Study Level with Financial and Technical projection ready for investors 
  • New HPPs have priority access to transmission line to Turkey 
  • Generation and Export activities are exempted from VAT 
  • HPPs smaller than 13 MW don’t need generation license 
  • HPPs smaller than 2 MW don’t need the Environmental Impact Permit 

OTHER RENEWABLE SOURCES

WIND

  • Wind potential of Georgia is estimated at 4 TWh 
  • Wind power is very important because of higher generation during winter. 
  • It’s estimated that share of wind power in total generation will reach 10% by year 2025. 

GEOTHERMAL

  • Georgian geothermal water reserves reach 250 mln. m3 per year. 
  • There are more than 250 natural and artificial water channels where the average temperature of geothermal waters ranges from 30 to 110 C 

SOLAR

  • In most regions of the country there are 250-280 sunny days in a year, which is approximately 6,000-6,780 hours per


Average rating: 4.83. Votes: 36

Diana Kabakci

The leading expert of the real estate market in Georgia
Education: MBA
Sphere: Real estate / Investments / Lawyer
Consultations made: 250
Expert on countries: Cyprus, Georgia, Kazakhstan, Poland
Known languages: Russian / Georgian / English / Turkish
Experience: 13 years
Expert publications: 545