Azernews.Az

By Alimat Aliyeva

Electricity consumption in Georgia is increasing steadily year after year. To meet the country’s rising energy needs and reduce dependence on imports, the government is accelerating plans to expand its use of renewable energy sources, Azernews reports.

According to energy experts, by 2030 electricity consumption in Georgia is projected to rise by approximately 73%, reaching 22 billion kilowatt-hours (kWh). Without significant infrastructure investment, the country may face a serious energy shortfall.

To counter this risk, Georgian authorities are intensifying efforts to harness domestic renewable energy, including wind, solar, and hydropower. A key example is the Kartli wind farm near the city of Gori in eastern Georgia. Operational since 2016, the farm has a capacity of 20 megawatts (MW) and is the country’s first commercial wind energy project.

Between January and April 2025, the Kartli wind farm produced 25.54 million kWh, representing a 6.9% decrease compared to the same period in 2024. Despite the drop, it remains a symbol of Georgia’s ambitions in clean energy.

To close the looming energy gap, the government has launched a Renewable Energy Development Scheme, which aims to attract $3–4 billion in investment over the next 2–3 years. One of the core elements of the plan is the use of competitive auctions to support the construction of new power plants with a combined capacity of 1,500 MW.

Winning bidders will receive financial support through a 15-year Contract for Difference (CfD) — a pricing mechanism that guarantees income stability by covering the gap between market prices and pre-agreed tariffs.

“With electricity demand growing and hydropower generation affected by seasonal fluctuations and climate change, diversifying into wind and solar has become not just a strategic priority — but an economic necessity,” said one official at the Ministry of Economy and Sustainable Development.

In the first four months of 2025, electricity consumption in Georgia rose by 3.5% year-on-year, reaching 4.9 billion kWh. However, domestic production fell by 9.8%, totaling 3.9 billion kWh — highlighting the growing gap between supply and demand.

Hydropower remains the country’s primary source of electricity, generating 2.9 billion kWh during the period. Thermal power plants accounted for 965.63 million kWh — not billion US dollars, as previously misstated.

Georgia’s geographic location — at the crossroads of Europe and Asia — makes it an important energy corridor. Yet the country still relies heavily on imports during peak demand seasons, particularly from neighboring countries like Russia, Azerbaijan, and Turkiye.

To ensure long-term energy independence, the government is not only expanding renewable generation but also exploring regional interconnection projects and battery storage initiatives.

If current plans are successfully implemented, Georgia could transform its energy sector into a model of green development in the Caucasus region. But the clock is ticking: with consumption growing rapidly and domestic output lagging, the next few years will be critical for ensuring energy security and sustainability.