Georgia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in georgia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Electrical Power Systems (ELP)
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Overview

Georgia has been a net importer of electricity since 2012 but began exporting limited seasonal surpluses of electricity to Türkiye in 2023, though Turkish demand has since fallen. Georgia has the potential to export more on a seasonal basis to markets in Türkiye and Europe. Georgia also serves as a transit country for electricity flowing between Azerbaijan, Türkiye, Russia, and Armenia. With assistance from the U.S. government, the European Bank for Reconstruction and Development, Kreditanstalt für Wiederaufbau (KfW), and the European Investment Bank, Georgia completed construction of an electricity interconnector project that allows for the export of electricity to more lucrative markets with high demand, such as Türkiye, and potentially Europe, although there is unused capacity on the line and scope to increase flows. Georgia is currently constructing new high voltage transmission lines with assistance from Germany’s KfW between Georgia and Türkiye as well as in between Georgia and Armenia to increase its grid capacity. Georgia, Azerbaijan, Romania, and Hungary signed a memorandum in July 2023 to establish a joint venture to develop a Black Sea submarine electricity transmission line which would link Azerbaijan to continental Europe via Georgia. The World Bank concluded a feasibility study of the Black Sea Submarine Cable in fall 2024 and plans to move forward with the next stage of seabed study and mapping by end of 2025.

Georgia made significant technological and economic progress since the early 2000s when the country’s energy system was fragile and customers could only expect a few hours of electricity per day in the capital, Tbilisi, with an even more dire situation in rural areas. Georgian policymakers took significant steps to adopt a modern and Westward-oriented approach to the energy sector, including unbundling and privatizing the state-owned vertically integrated electricity utility and establishing a strong regulatory commission.

In 2017, Georgia signed the Energy Community Treaty. Under this treaty, Georgia is obligated to gradually implement certain EU directives and regulations in Georgia’s own legislation. In 2020, the U.S. government facilitated the establishment of the Georgian Energy Exchange (GENEX) with the goal of supporting Georgia to liberalize its electricity market. The official launch of the competitive power market that would be operated GENEX was originally planned for March of 2022, but has been delayed multiple times most recently to July 2027. The repeated delays of the opening of the electricity market have created uncertain market conditions for international investors seeking transparency and predictability in Georgia’s energy sector.

Leading Sub-Sector: Hydroelectric Power, Wind Power, Solar Power, Transmission, and Distribution

There are many opportunities for U.S. companies in electricity power generation - specifically hydropower, wind, and solar. There are growing opportunities in power transmission and distribution infrastructure projects, battery storage, and recent interest in green hydrogen. There are also export opportunities for U.S. manufactured equipment and services during construction and rehabilitation of facilities, and management and upgrades of existing power infrastructure. Opportunities for U.S. suppliers are also available in projects financed by multilateral financial organizations and bilateral assistance: the World Bank, EBRD, the ADB, the Japan Bank for International Cooperation, and KfW.

Other opportunities exist in demand-side energy management for the electricity distribution companies that serve electricity market end-users. These opportunities are for cybersecurity, smart grid, metering, and intelligent energy management systems for distribution grid operators, industrial and commercial users, and to a lesser extent, residential users, as the country develops better incentives for energy efficiency.

Opportunities

Georgia does not currently produce power generation and transmission equipment, except for some small capacity hydroelectric turbines, solar panel assembly, and electricity meters. Most current equipment was produced in the Soviet era, primarily in present-day Russia. Current efforts of the Georgian government to end subsidies for electricity and to develop renewable energy - including hydropower, wind, and solar generation infrastructure, as well as the construction of new power transmission infrastructure - should create demand for equipment and opportunities for U.S. investors and exporters. All medium and large hydroelectric generation facilities except Enguri and Vardnili hydropower plants have been privatized.

Resources

  • Electricity System Commercial Operator of Georgia (ESCO)

  • EBRD

  • ADB

  • World Bank

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