15-year fixed tariffs introduced for hydropower, wind, and solar projects

The Georgian Ministry of Economy has introduced a new support scheme that allows qualified investors to secure fixed tariffs for renewable energy projects, such as hydropower, wind, and solar, without undergoing a competitive auction process. The tariffs, set for a 15-year period, offer long-term stability, with rates defined at US$ 0.065/kWh for hydropower, US$ 0.006/kWh for wind, and US$ 0.056/kWh for solar. This initiative, based on a price difference agreement with the state, aims to attract local and international investments and promote renewable energy production.

Jubo Turashvili, Head of the Energy Policy and Investment Department, explained that these rates were determined following a recent capacity auction that saw overwhelming investor interest, with demand surpassing the announced capacity several times over. As a result, the established median rates now serve as fixed tariffs for the scheme, ensuring strong government support for each investor through direct negotiations.

The introduction of this support mechanism is crucial for Georgia’s energy sector, as it provides a clear and reliable framework for new investments. This initiative is expected to significantly boost renewable energy capacity in the country, enhance energy security, and align Georgia’s energy market with international sustainability standards. By prioritising the development of hydropower, wind, and solar projects, the scheme sets the groundwork for a greener and more resilient energy future in Georgia, creating opportunities for sustainable growth and reducing the nation’s dependence on traditional energy sources.