On 26-28 October the Georgian National Energy and Water Supply Regulatory Commission (SEMEC) hosted an international renewable energy investment conference. The purpose of the conference was to increase investors’ interest in the renewable energy sector and to attract new investment in the field. The organizers of the conference were the Council of European Energy Regulators (CEER) project – European Union for Energy (EU4Energy) and the Regional Association of Energy Regulators (ERRA). Representatives of 30 countries participated in the conference.
The three-day conference featured high-level discussions on renewable energy policies and the renewable energy investment climate in different countries. Conference participants had the opportunity to present potential renewable energy investment projects to investors.
As the international experts state, Georgian energy systems are very well developed. Many projects are underway in Georgia, and their main purpose is to bring Georgia closer to the requirements of the European Union. Market opening, implementation of the policy of transition to renewable energy and energy efficiency are particularly important.
Readers might already know that the first energy market in Georgia functioned on a PPA mechanism. It was later replaced by feed-in premium scheme, however it did not gain a foothold in the country. The conference largely focused on a new, so-called CFD mechanism, which is based on European experience. The main difference between CFD and feed-in premium is that the former is more market-based than the latter. It makes it more stable for investors and consumers.
CFD seems the most appropriate for the strategic goals of Georgia, since it meets two important factors of investing in renewable energy: (1) having a sound and trusted system that will protect the interests of investors, and (2) the need for a return acceptable to investors.
Developing its energy potential is of strategic importance for Georgia. As the vice prime minister noted, attracting investments in the field is government’s main priority.
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