Georgia's Renewable Energy Horizon: Insights from GREDA at Energy Week Black Sea 2025

Within the framework of Energy Week Black Sea 2025 – a unique platform bringing together major stakeholders from Romania, Bulgaria, Moldova, Ukraine, Türkiye, and Georgia – we spoke with Maia Melikidze, Executive Director at GREDA. During our conversation, she provided valuable insights into Georgia’s renewable energy landscape, highlighting the country’s promising developments in hydropower, solar, and wind energy, as well as opportunities for international companies to invest and collaborate in this burgeoning market.

Current Landscape: Could you provide an overview of the current state of renewable energy in Georgia? Which technologies (solar, wind, hydropower, etc.) are showing the most promise?

Georgia has made significant strides in developing renewable energy sources, leveraging its abundant natural resources. The country is rich in hydropower potential, which remains the dominant renewable energy source, accounting for over 80% of the country’s electricity production. Hydropower has an extensive legacy in Georgia, with numerous small and large hydropower plants contributing to grid stability.

In recent years, however, we have seen growing interest in diversifying the energy mix. Solar energy, thanks to Georgia’s favourable geographic location and high solar irradiance, is increasingly seen as a promising technology. There has been a sharp rise in both small-scale solar PV installations and large utility-scale solar farms. Additionally, wind energy is gradually emerging as a viable option, particularly in regions like the Caspian and coastal areas, where wind speeds are favourable for wind turbine generation.

As the grid continues to modernize, integrating these varied renewable sources will be a critical factor in achieving energy security and sustainability.

Regional Cooperation: How does Georgia collaborate with other Black Sea region countries to enhance renewable energy integration and development?

Georgia has an important role to play in regional renewable energy cooperation, particularly within the Black Sea region. The country is strategically positioned as a bridge between Europe and Asia, and its energy market is increasingly interconnected with those of neighboring countries. In terms of energy trade, Georgia has long maintained strong relationships with Armenia, Azerbaijan, and Turkey, and there is a growing focus on regional electricity and renewable energy grid integration.

Georgia is part of the South Caucasus Power System, which is increasingly linked with European and Turkish grids. This integration allows Georgia to not only export renewable energy, particularly hydropower, but also to import cleaner energy from neighboring countries when necessary. Furthermore, Georgia is collaborating with regional organizations, such as the Black Sea Economic Cooperation (BSEC), to promote the development of cross-border renewable energy projects and the sharing of best practices.

Regional cooperation is particularly crucial for grid stability and energy security, as it ensures a more resilient energy infrastructure that can better handle fluctuations in renewable energy generation.

Green Financing: What financing models, such as PPAs or CfDs, are being adopted in Georgia to attract investments in renewables?

Green financing is pivotal for accelerating renewable energy development in Georgia, and various models have been introduced to attract investment. Power Purchase Agreements (PPAs) were one of the most widely used mechanisms in the country. These long-term contracts between energy producers and buyers—whether utilities, industrial consumers, or public institutions—provide the financial stability to fund large-scale renewable projects.

Another important mechanism is the Contract for Difference (CfD), which guarantees a fixed price for energy producers over a set period, protecting them from market price volatility. The Georgian government has introduced these models to make the renewable energy sector more attractive to private investors by offering price certainty and reducing financial risks.

Additionally, green bonds are gaining traction in Georgia, as both public and private sectors recognize their potential to finance projects that contribute to environmental sustainability. International financial institutions, including the European Bank for Reconstruction and Development (EBRD) and the World Bank, are increasingly involved in providing loans, grants, and guarantees to support green energy investments.

Energy Storage and Flexibility: What role do energy storage and hybrid systems play in Georgia’s energy transition strategy?

Energy storage is pivotal in Georgia’s strategy to integrate renewable energy into the national grid. As renewable sources such as wind and solar are intermittent by nature, they often generate more energy than the grid can immediately use or produce insufficient energy during periods of high demand. To address this challenge, energy storage technologies are essential.

One of the most promising solutions for balancing supply and demand is the use of battery storage systems. These systems allow surplus renewable energy to be stored during times of high generation and then released during peak demand periods, ensuring grid stability and reliability. Battery storage helps smooth out the fluctuations in renewable energy production and reduces the risk of blackouts or supply disruptions, which is particularly important as the share of renewables in the energy mix grows.

In this context, Georgia is moving forward with its first large-scale electricity storage battery system, which marks a significant step in the country’s energy transition. This project is supported by a substantial 355 million GEL investment from the Asian Development Bank (ADB) and is set to begin its initial phase in 2025. The storage project is expected to be completed in multiple stages, with the full implementation stretching through to the end of 2028.

The primary aim of this initiative is to enhance the flexibility, stability, and security of Georgia’s electricity system by improving the capacity to store and distribute renewable energy. Georgia will be able to better manage the growing share of renewables in the energy mix and ensure a reliable power supply for consumers.

Offshore Wind and Hydrogen: Are offshore wind and green hydrogen viable opportunities in Georgia’s renewable energy portfolio?

Offshore wind has significant potential in Georgia, particularly in the Black Sea region, where the wind resource is favourable. However, this technology is still in the early stages of development, and substantial infrastructure investment is needed to make offshore wind commercially viable. Several feasibility studies are underway, and with proper policy support and international collaboration, offshore wind could become a major part of Georgia’s energy mix in the coming decades.

As for green hydrogen, it presents an exciting opportunity for Georgia, especially given the country’s existing expertise in hydropower generation. Green hydrogen could be used in various industries, such as transportation, heavy industry, and storage. While still a nascent field in Georgia, there are emerging opportunities for research and pilot projects that could lay the groundwork for a future hydrogen economy in the region.

Market Outlook: How do you see the renewable energy market evolving in Georgia over the next five years?

The renewable energy market in Georgia is poised for substantial growth over the next five years. With ongoing government support, increased regional cooperation, and growing international interest, Georgia is becoming an increasingly attractive destination for renewable energy investments. In particular, the country’s hydropower, solar, and wind sectors are expected to see significant expansion as investors recognize the long-term potential.

Over the next few years, energy storage and grid modernization will become increasingly important as Georgia works to balance renewable energy generation with demand. Furthermore, there is a growing recognition of the need to diversify the energy mix, which will drive the continued development of both conventional and cutting-edge renewable technologies.

Local Collaboration: How does GREDA facilitate partnerships between local companies and international stakeholders?

At GREDA, we play a key role in facilitating partnerships between local companies and international stakeholders. This includes connecting local developers with foreign investors, organizing joint ventures, and creating platforms for knowledge exchange. By fostering collaboration, we ensure that the renewable energy sector in Georgia benefits from both local expertise and international best practices.

We also work closely with local businesses to help them navigate regulatory processes, secure financing, and develop projects that align with international environmental standards. Our goal is to create a vibrant and collaborative ecosystem where local and international players can work together to achieve common goals of sustainability and energy security.

Advice for Investors: What advice would you give to international developers and investors interested in entering Georgia’s renewable energy market?

For international developers and investors interested in Georgia’s renewable energy market, I would advise focusing on three key aspects. First, it is crucial to understand the regulatory landscape, including the available incentives and financing mechanisms. Partnering with local entities that understand the nuances of Georgian law and policy will also be beneficial.

Second, it is important to assess the long-term sustainability of projects by considering the environmental, social, and economic impacts. Projects that offer value to local communities and contribute to the overall green economy will align with Georgia’s development priorities.

Lastly, investors should stay informed about the government’s long-term energy strategy and its commitment to renewable energy. By doing so, they can ensure that their projects align with the country’s future energy goals and regulatory developments.

Vision for the Future: What is your long-term vision for Georgia as a renewable energy leader in the Black Sea region?

Our long-term vision for Georgia is to become a leader in renewable energy within the Black Sea region and a key player in Europe’s green transition. Georgia’s abundant natural resources, strategic location, and growing infrastructure make it well-positioned to achieve this goal.

In the coming decades, we envision Georgia playing a central role in regional energy integration, supplying clean, renewable energy not only to its citizens but also to neighboring countries. By continuing to prioritize green energy, investing in innovation, and fostering international partnerships, Georgia can contribute significantly to global sustainability goals and establish itself as a renewable energy hub in the region.

To learn more and join the conversation, register now at https://bsenergyweek.com/register/.