Georgia
With a cumulative score of 1.43, Georgia ranks number 56 among emerging markets and number 85 in the global ranking.
- Emerging markets
- Asia-Pacific
1.63 / 5
Power score
1.04 / 5
Transport score
1.24 / 5
Buildings score
Low-carbon strategy
Net-zero goal and strategy
Georgia does not have a net-zero goal but plans to follow the targets laid out in its NDC. Aside from clean electricity generation, the country has developed several policies aimed at improving energy efficiency in buildings.
Nationally Determined Contributions (NDC)
Georgia does not have a net-zero goal but plans to follow the targets laid out in its NDC. Aside from clean electricity generation, the country has developed several policies aimed at improving energy efficiency in buildings.
Fossil fuel phase-out policy
Georgia’s power mix is primarily hydro and some gas-fired generation. Given the seasonality of hydropower reserves, natural gas plants supported by imported gas are key to the power mix, while there is no fossil fuel phase-out policy in place as yet.
Power
Power policy
Following the 2019 passage of the Law on Promoting the Production and Use of Energy from Renewable Sources, some standards around accounting for energy from different sources have been developed and published. More details around contracting for renewables such as large-scale wind and solar are still expected. The country has announced plans to hold its first solar PV auction, but the date for when this will take place and how it will be carried out are not yet known. Net metering has been available to small generators since 2016, and the size limit for such facilities was increased from 100kW to 500kW in 2020.
Power policies
Power prices and costs
Households and small businesses are supplied at regulated retail rates, which have been rising over the last three years. Georgia is moving forward with unbundling the electricity sector, and retail customers with consumption in the 35-110V level will have to choose a supplier by July 2021.
Power market
Georgia’s power sector is largely made up of hydropower, with some gas-fired generation. The use of hydropower was promoted for several years through guaranteed PPAs, but since 2019, the government has shifted to a feed-in-premium mechanism for small hydro power that caps the amount they can receive. Payment mechanisms for other renewables are not in place yet, and most other renewables are negligible in the country.
Market monitoring rules for day-ahead, real-time and imbalance settling have been adopted as of January 2021.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
A key barrier to further decarbonizing the power sector remains the speed of government action.
Currency of PPAs
Are PPAs signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Transport
EV market
Georgia currently has a small domestic market for electric vehicles. Nonetheless, Changan Corporation, a Chinese electric vehicle maker, plans to set up an electric vehicle plant with a capacity of 40,000 cars a year. Those vehicles that are diverted to the domestic market will eventually add to the country’s electric vehicle fleet.
EV policy
The government has yet to implement any substantial policy support in this sector and the EV market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Most building heating and cooling in Georgia is fueled by natural gas, with electricity powering 16% of the total energy consumed in the sector. With the new bylaws on energy efficiency, more inspections and performance measures are expected.
Energy efficiency plan
Does the country have a national energy efficiency plan?
Energy performance standards
Are there minimum energy performance standards for buildings?
Buildings policy
Georgia’s efforts in the buildings and low-carbon heating/cooling space have been focused on energy efficiency. In 2020, the government adopted the law on Energy Performance in Buildings. Since then, bylaws have been prepared that detail methodology for energy performance calculation, certification rules, regulation around the inspection of heating and air-conditioning systems, regulation on minimum energy performance requirements for buildings, reports on heating and cooling systems, and alternative measures of regularity compliance inspection.
There is no national fund for energy efficiency, and further bylaws, such as those certifying appliances, are expected. There is no district heating system and the potential has not been studied. There are no known heat pump sales.
