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Georgia Energy Profile Summary

Core Content

Georgia is a country located in the Southern Caucasus region, at the crossroads of Western Asia and Eastern Europe. It has a population of 3.7 million and a territory of 69,700 km². The country has a developed, stable, and reliable energy sector, primarily relying on hydropower and fuelwood. The Ministry of Economy and Sustainable Development (MoESD) is the main governing body for the energy sector, and the country is actively implementing EU energy legislation under its membership in the Energy Community.

Key Energy Data

Supply

• Georgia's energy production covers less than one-fourth of its energy demand (21.4% in 2019).
• In 2019, domestic energy production was 1.09 Mtoe, with hydro and biofuels/waste being the main contributors (0.768 Mtoe biofuels and 0.245 Mtoe waste).
• Fossil fuel production was limited in 2019, with 6.2 ktoe of lignite, 35.6 ktoe of crude oil, and 8.3 ktoe of natural gas.

Imports

• Georgia depends on imports for all natural gas (2.69 bcm in 2019) and most of its oil products (1.35 Mt in 2019).
• Oil is mainly imported in refined forms such as diesel (40.7%) and gasoline (40.4%).

Demand

• In 2019, Georgia's energy demand was 5.1 Mtoe.
• Energy consumption per capita is two times lower than the world average but is growing rapidly.
• The energy mix in 2019 was: natural gas (45.4%), oil (27%), renewables (20.4%), and coal (4.7%).

Renewables

• The share of renewable sources in Georgia's electricity mix was 74.7% in 2020, one of the highest globally.
• Among EU4Energy focus countries, Georgia ranks third in renewable energy production, after Ukraine and Belarus.

Energy Sector Governance

Executive

• The Ministry of Economy and Sustainable Development (MoESD) oversees energy policy and is responsible for implementing EU directives and regulations.
• The Georgian Energy Development Fund identifies and supports renewable energy projects.
• The Public-Private Partnership Agency leads in developing public-private cooperation projects.

Legislative

• The legislative process for energy-related laws follows constitutional procedures.
• The Georgian Energy and Water Regulatory Commission (GNERC) and the MoESD can initiate secondary legislation.
• The parliamentary Committee on Sectoral Economy and Economic Policy and the Environmental Committee oversee energy developments and environmental impacts.

Judiciary

• Disputes in the energy sector are resolved by GNERC, with the option to appeal to general courts.
• Some cases have been taken to the Constitutional Court, such as those related to tariff adjustments and energy laws.

Regulatory Framework

• GNERC, established in 1997, regulates energy and water supply, including market rules, licensing, and tariffs.
• It sets caps on wholesale prices for existing plants, except for small and medium-sized hydropower plants developed after 2008.
• The State Agency for Oil and Gas, established in 1999, regulates oil and gas operations under the MoESD.

Key Policies

• The MoESD is developing an Energy Policy document, including short-, medium-, and long-term strategies for gas and electricity, as well as the National Energy and Climate Plan (NECP) for 2021-2030.
• The NECP aligns with the Energy Union's main directions, including energy security, efficiency, and renewable development.
• Georgia has revised its climate goals under the Paris Agreement, aiming for a 35% reduction in GHG emissions by 2030 (unconditional), and up to 57% with international support.
• The Climate Change Strategy and Action Plan provides detailed sector-specific targets and measures.

Energy Statistics

• Energy statistics are produced by the National Statistics Office of Georgia (Geostat) and the National Bank of Georgia.
• Geostat compiles the official Energy Balance of Georgia annually, using international standards and methodology.
• Energy data are shared with the United Nations Statistics Division (UNSD) and the International Energy Agency (IEA) through joint questionnaires.
• Geostat also collects end-use consumption data and plans to expand energy statistics for efficiency and forestry (biomass) indicators.

Chapter 1. Energy Security

Resource Endowment

• Georgia has significant hydro resources with an annual potential capacity of 15,000 MW and production potential of 50 TWh.
• Wind energy potential is estimated at 4 TWh (1,500 MW), and solar irradiance ranges from 1250 kWh/m² to 1800 kWh/m² annually.
• Geothermal water stock is estimated at 200-250 mcm annually, though not suitable for electricity generation.
• Crude oil and natural gas reserves were estimated at 5 Mt and 8 bcm, respectively, in 2012.

Energy Security and Diversification

• Georgia is a net importer of oil and gas, relying heavily on imports from Russia and Azerbaijan.
• The country is diversifying its energy supply sources and promoting hydropower development.
• Georgia is developing underground gas storage with a capacity of 210-280 mcm, aimed at regulating seasonal imbalances.

Energy Infrastructure and Investment

• Hydropower provides 73.9% of Georgia's electricity in 2019, with natural gas contributing 25.2% and wind 1%.
• The 1300 MW Enguri HPP is the backbone of Georgia's electricity generation.
• The Georgian State Electrosystem (GSE) operates the national grid, while JSC Telasi and JSC Energo-Pro Georgia manage distribution.
• Cross-border infrastructure for 2031 includes transmission lines with Russia (500 kV, 220 kV, 110 kV), Azerbaijan (500 kV, 330 kV), Armenia (220 kV), and Turkey (500 kV, 400 kV, 220 kV).

Chapter 2. Market Design

• National market structure is regulated by GNERC and the MoESD.
• Regulatory framework includes market rules, licensing, and tariffs.
• Regional markets and interconnections are being developed to enhance energy security and market integration.

Chapter 3. Sustainable Development

• Renewable energy is a key focus, with policies promoting solar, wind, and geothermal energy.
• Energy efficiency measures are being implemented, including laws on energy efficiency and building performance.
• Fuel switching and environmental protection are prioritized to reduce emissions and improve sustainability.
• Georgia is committed to reducing GHG emissions by 35% (unconditional) and 57% (with international support) by 2030.
• Technology research, development, and deployment are encouraged to support sustainable energy goals.