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Sebastian Staske, Rouven Stubbe

Georgian electricity system to face challenges

In recent years, the demand for electricity in Georgia has always exceeded the coverage potential of domestic production.

  • Georgia
NL 42 | September - October 2021
Energy and Climate

High economic growth, low electricity prices and cryptomining have resulted in electricity demand in Georgia growing much faster than generation in recent years. The electricity market is dominated by hydropower, which covers about 65% of total consumption. At the same time, imports have become more important (about 12%), mainly from Azerbaijan and Russia. The repair of the important Enguri hydropower plant in early 2021 has again underlined the importance of imports, especially in winter.

Georgia has ambitious expansion plans, but their implementation is questionable. The low prices remain a challenge despite a tariff reform and are also an explanation for the rise in cryptomining. Membership in the Energy Community promises the prospect of increased transparency and liberalisation of the electricity market.

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