Energy Sector

Energy Sector

The energy sector in Georgia: hydropower, renewables and opportunities

About 80% of electricity comes from hydropower, consumption exceeds generation and the country is investing in new capacity: the openings for foreign companies.

In short

In 2025 Georgia generated about 13.8 billion kWh of electricity, 80% from hydropower and most of the rest from thermal plants; wind and solar were under 1%. Consumption, at 14.9 billion kWh, exceeded generation. The country is investing in new plants, renewables and links with its neighbours: openings for engineering, equipment and component suppliers.

Georgia’s energy sector runs on water: in 2025 about 80% of the 13.8 billion kWh generated came from hydropower plants, most of the rest from thermal plants. Wind and solar are still under 1%.

Consumption (14.9 billion kWh in 2025) exceeded generation, and the country is investing in new plants, renewables and links with its neighbours. For companies making equipment or components, free industrial zones can offer an attractive tax regime.

The sources

Where to invest in energy

1
Hydropower
About 80% of electricity: new small and medium plants and upgrades to existing ones.
2
Wind
One utility-scale wind farm (Kartsakhi, 21 MW): potential still almost untapped.
3
Solar
First utility-scale plant since August 2025: the segment with the most room to grow.

How Georgia generates power

Source2025 generationApprox. share
Hydropowerabout 11 billion kWhabout 80%
Thermalabout 2.8 billion kWhabout 20%
Wind (Kartsakhi, 21 MW)79 million kWhunder 1%
Solar (first utility-scale plant, from August 2025)4.57 million kWhunder 0.1%

In 2025 hydro output fell 3% while consumption rose 3%; thermal plants and imports covered the gap. Growing demand and seasonal hydro output push the country to add capacity.

Market context

  • A transit country between Europe, Turkey and the Caucasus, with interconnection projects
  • Energy efficiency in buildings and industry: boilers are already among Georgia’s main imports from Italy
  • In winter hydropower produces less: thermal plants and imports cover the gap
  • Large projects need licences, state agreements and long lead times; the power market is being reformed

2025 in figures

  • Electricity generation
    13.8 billion kWh
  • Consumption
    14.9 billion kWh
Source: Georgia Today, 2025 power sector data.

Frequently asked questions about the energy sector in Georgia

Is Georgia self-sufficient in electricity?

Not entirely. Hydropower depends on the seasons and produces less in winter. In 2025 consumption (14.9 billion kWh) exceeded generation (13.8 billion), with imports covering part of the gap.

How does the Build-Own-Operate model work?

The investor who builds a plant owns and operates it, selling the power on terms agreed with the state and the grid operator.

Are there opportunities for foreign companies in energy?

Yes, especially in plants, components, engineering, renewables and energy efficiency.

Sources

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