The International Energy Agency (IEA) regularly conducts energy policy reviews for its members and non-member countries. In 2020, IEA published an energy policy review for Georgia, highlighting its achievements and outlining some of the challenges in its transition to a more secure, sustainable and affordable energy future.
According to the report published in July 2020, Georgia has made solid progress in improving the security of its energy supply and in transitioning to a cleaner more sustainable energy system. By incorporating private assets, the country’s electricity sector has become increasingly competitive, which in turn made the system more stable. Construction of new hydropower plants, electricity exports, development of cross-border infrastructure optimize the use of regional resources and improve security of supply.
Since the last IEA review in 2015, the Georgian government has made significant efforts to develop policies and measures to combat climate change, adapt the national economy to climate variations and protect the environment. Having a large share of hydropower in the energy mix, Georgia’s CO2 intensity is below the world average. Georgia is working harder towards promoting energy efficiency and renewable energy. The launch of a net-metering programme now enables small businesses and households to adopt rooftop photovoltaic (PV) systems and support from national and municipal measures stimulates the growth of electric vehicle usage, which has now become a trend in the country.
Despite commendable achievements, there is still room to grow for Georgia in the energy sector. The IEA reports stresses the importance of a comprehensive energy strategy, that includes a long-term action plan that “encompasses a wider vision and strategic milestones based on modelling”. Despite having a sound regulatory institution in place, the Georgian government should consider further institutional reforms to have a complete system of policy analysis, and development and implementation of energy strategy to be able to make strategic decisions on the future of energy market.
As stated in the report, to facilitate the implementation of Georgia’s EE objectives, the government could consider creating a dedicated institution with the mission of improving energy efficiency across all sectors of the economy. Furthermore, to support RE development, the IEA suggest adopting short-term actions (RE capacity procurement auctions, streamlining permits and license procedures for HPP and other RE projects), along with Georgia’s aim to integrate RE generators into the future power market.
Read the full report, here.
Subscribe to our quarterly newsletter