Georgia Leads the Way in Renewable Energy with $800 Million Investment from International Investors
Georgia has made significant progress in renewable energy with the construction of several dozen hydroelectric power stations in the past ten years, and 12 new HPPs put into operation in 2022-2023, with a total installed capacity of over 30 MW.
Speaking at the "Attracting Financing from International Financial Institutions for Renewable Energy Projects" conference, First Deputy Minister of Economy and Sustainable Development, Romeo Mikoutadze, announced that more than 60 agreements had been signed with investors in 2022, totaling over $800 million in investment for the country, potentially adding more than 2 billion kWh to local generation annually.
Organized by the Georgian Renewable Energy Development Association (GREDA), the conference was attended by representatives from the public and private sectors, as well as international financial institutions such as IFC, EBRD, ADB, and FMO. The event was opened by the Vice Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili.
The First Deputy Minister highlighted the legislative framework being developed to support the development of green energies. He also mentioned the updated directive, which introduces new market-oriented support schemes, and the National Integrated Energy and Climate Plan, which aims for 27.4% of final consumption to come from renewable energy sources by 2030.
Mikoutadze emphasized the new renewable energy support scheme based on competition and market principles, developed with the support of donor organizations, which provides for capacity auctions for renewable energy sources, including non-traditional sources such as hydrogen, biogas, biomass, geothermal, and more. He believes that this support scheme will encourage negotiations and cooperation with financial institutions, helping potential investors to raise financing, which is necessary for the implementation of renewable energy projects in the country.
Furthermore, Mikoutadze drew attention to the social and environmental issues that investors must consider when building energy projects, especially large energy facilities. He highlighted the importance of mutual cooperation in the utilization of renewable energies in the country, which will make a significant contribution to the strengthening of energy security and economic development in Georgia.
Georgia is leading the way in renewable energy with its ambitious goals and support schemes for green energies, coupled with significant investment from international investors. With these efforts, Georgia is poised to become a major player in the renewable energy sector.