The Energy Sector in Georgia: a Growing Regional Hub
Dominant hydropower, expanding renewables and strong government support for private investment: Georgia aims to become a key player in the Caucasus energy market.
Georgia's energy sector is emerging as a regional hub, thanks to its strategic position at the crossroads of Europe and Asia. Over 70% of the country's electricity comes from hydropower plants, with a growing share from solar and wind.
The Georgian government aims to expand installed capacity to over 10,000 MW by 2034, with incentives targeted at attracting private investment into the sector. For anyone considering entering this market, Free Industrial Zones can offer an interesting complementary tax regime.
Where to Invest in Energy
Market Context
- Georgia strategically positioned as an energy hub between Europe and Asia
- Strong government support for private investment in the sector
- In winter months the country still imports energy from Azerbaijan and Russia, due to hydropower dependency
- Build-Own-Operate model: whoever invests in the plant remains its owner and operator
2030-2034 Targets
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Target Installed Capacity (2034)Over 10,000 MW
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Target Hydropower Capacity (2030)Double the 2019 level
Frequently Asked Questions About the Energy Sector in Georgia
Why does Georgia still depend on energy imports in winter?
Because production is heavily tied to hydropower, which fluctuates with seasonal water flow: in winter months, with lower flows, the country imports energy from Azerbaijan and Russia to meet demand.
How does the Build-Own-Operate model work?
The investor who builds a plant remains its owner and operates it directly, selling the energy produced under terms agreed with the Georgian energy operator.
What are the most concrete opportunities for a foreign investor?
The hydropower sector remains the most mature and government-backed, but wind and solar offer interesting growth potential precisely because they're still less developed.
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