Georgian energy market opportunities to be discussed at Tbilisi event

Georgian energy market opportunities will be discussed at the upcoming Energy Week Georgia 2020, a high-level event scheduled for January  28-30 in Tbilisi with the support of the Ministry of Economy and Sustainable Development of Georgia.

Investors, EPC and engineering companies as well as international contractors will be participating.

The energy sector of Georgia is very attractive in terms of its untapped potential, developing infrastructure and increasing local and regional demand. In particular, investors and developers are seeing increasing renewable energy opportunities in the country.

RE Market Opportunities Appealing

Domestic demand is expected to almost double by 2030 from current consumption of 13.4 TWh. Georgia’s generation capacity will not be enough to meet domestic demand in the long term without additional generation sources. The estimated deficit by 2025 is more than 3 TWh.

Starting from 2008, Georgia has liberalized and deregulated the energy market. The State Program Renewable Energy 2008 stipulates the rules and procedures regarding construction of new renewable energy projects. The electricity may be sold to any buyer in Georgia, based on freely negotiated prices, and/or to the electricity market operator (ESCO) based on the guaranteed power purchase agreement.

Georgia has well-developed transmission grid infrastructure. The whole territory of the country is covered with over 3,000 km of high, medium and low voltage lines and about 100 substations. In 2013, a new 400 KV line with HVDC back-to-back substation connecting Georgia with Turkey was commissioned, adding to already significant transmission capacity with all neighboring countries.

Major Potential for Hydropower

Georgia is one of the top countries in terms of water resources per capita and more than 80% of total electricity in the country is generated by HPPs. At the same time, only 25% of economically feasible hydro potential is exploited today.

There are 118 ongoing HPP projects, divided by the following categories:

  • 74 projects up to 13 MW – total installed capacity 363 MW and about $ 400 million investment;
  • 44 projects from 13 MW – total installed capacity 2 986 MW and about $ 5.7 billion  investment.

Wind and Solar Considerations

Georgia has significant wind potential through which average annual electricity generation is evaluated at 4 bln. KWh and installed capacity of 1,500 MW. There are 18 wind energy projects on feasibility study stage with a total installed capacity of 462 MW. Among largest projects are Imereti 1 Wind Farm (300 MW), Central Wind Farms (120 MW), Pirveli Wind Farm (110 MW) and Kartli 2 Wind Farm (100 MW).

There are 6 solar projects at feasibility and construction stages with a total installed capacity of 93 MW. Among largest projects is a 50 MW AE Power Tbilisi Solar Farm.

For further information on Energy Week Georgia 2020, visit 


EKO returns to Georgian market through Wissol deal

Greek fuel retailer EKO, controlled by ELPE (Hellenic Petroleum), has reached an agreement with Wissol Petroleum, one of Georgia’s biggest fuel distributors, for the establishment of a flagship EKO gasoline station in Tbilisi as a pilot project amid a wider strategy eyeing expansion in the Balkans and southeast Europe.

The new fuel station will mark EKO’s return to the Georgian market following a previous spell that began in 1996, when ELPE became one of the former Soviet state’s first foreign investors, capturing a 5 percent market share with a retail presence numbering 16 outlets.

“EKO’s return to Georgia is the first step in the partnership with Wisssol,” noted Dimitris Karabalis, Greece’s ambassador to Georgia. “Wissol was chosen based on its size as Georgia’s biggest chain and its credibility as a reliable local associate,” he added.

Commenting on the development, ELPE official Roberto Karahannas noted: “We are the most developed group in southeast Europe. Through EKO, we offer the highest quality products in the countries where we are present and are now back in the Georgian market.”

In his remarks, Wissol president Soso Pkhakadze pointed out: “Even though EKO has not been active in Georgia for a number of years, the company, based on market research, is renowned for possessing exceptional quality.”

Georgia ensures uninterrupted natural gas supply

The Georgian government aims to ensure stable and uninterrupted natural gas supply, which has proven difficult in Georgia as a result of increased consumption in the country in recent times, the country’s Foreign Affairs minister, Micheil Janelidze, has announced in a statement.

In order to achieve this goal, the Georgian government conducted extensive negotiations, which produced successful results, the ministed noted.

“Together with our friend and strategic partner – Azerbaijan – means of supply of additional amounts of natural gas necessary for covering the deficit were found, on good terms. The agreement on this was reached and signed by the Minister for Energy of Georgia and the Azerbaijani company SOCAR, last week,” Janelidze noted.

Negotiations were also conducted with GAZPROM on the terms of the transit of natural gas from Russia to Armenia, through Georgian owned infrastructure. Such negotiations have been conducted annually since 2004, as the transit agreement is re-examined each year.

During these negotiations, officials also discussed ways to cover natural gas needs should supply is not possible from certain sources.

The agreements reached with SOCAR mean that there is no need to purchase additional amounts from GAZPROM exports, according to Janelidze.

At the same time, an agreement has been reached with GAZPROM to maintain the terms of an existing transit contract that has been valid in previous years, the minister noted, adding that its extension will be signed within the next few days.

Georgia will be supplied natural gas for transit to Armenia and will not purchase any additonal amounts from GAZPROM, the minister noted.

“With these agreements, the government of Georgia has ensured the best possible terms for stable and uninterrupted supply of gas and energy security for the country,” Janelidze stated.