MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

solar power plants are becoming increasingly popular from an investment perspective, and I believe our country has even greater opportunities and potential compared to neighboring countries that are trying to become more attractive centers and energy resource trading hubs. It is important that we utilize this as well” – Levan Davitashvili said in his speech at a conference organized by the Bank of Georgia. At the event titled “Electricity Market in Georgia,” a study of Georgia’s electricity market, transmission network development, and a review of market reforms was presented to the audience. Conference participants also discussed current issues in this sector.

Levan Davitashvili assessed that the energy sector is crucial for economic development, as without its proper development, talk of economic competitiveness is superfluous. According to the First Vice Prime Minister, to develop the energy sector correctly, sustainably, and long-term, it is very important to listen to various parties, reconcile positions, and reflect this in an energy policy that will be adopted based on broad consensus and has no alternative. As the Minister noted, every successful policy implemented by the country is successful if it is shared by various parties and agreed upon with key actors. Levan Davitashvili noted that in this case, private local and foreign companies have been the main investors in energy in recent years, and there is great interest from private investors in the future as well. Consequently, a policy shared with them will be the right policy.

Levan Davitashvili emphasized the importance of infrastructure development for the successful development of generation facilities. He assessed that simultenious development and coordinated actions are crucial here.

“This coordination needs to be improved in the future, and I believe that with a more coordinated policy, we will be able to develop infrastructure in line with the investment plans of private investors. We also understand that when we talk about integrating energy facilities from renewable sources, electricity storage infrastructure is very important. In this regard, the Georgian State Electrosystem has an important project – they plan to purchase 200 megawatts of batteries, for which we will announce a tender this year. Funding has been received from the Asian Development Bank, and this was preceded by two years of research work, which was successfully completed. I believe this will be an important element that will contribute to system stability” – the First Vice Prime Minister said.

In his speech, Levan Davitashvili also touched upon the opportunities arising from Georgia’s geostrategic location, including becoming an important data exchange hub. According to the Minister, it can be a significant part of the digital corridor connecting Europe and Asia, not only in terms of transport but also digitally. Levan Davitashvili stated that globally, with the growth of energy-intensive industries, data centers, artificial intelligence centers, and manufacturing, electricity consumption is constantly increasing. Industries such as cement production, chemical industry, and steel production are also starting to use green, renewable energy, which, in the Minister’s opinion, will be an even more active direction in the future. He also stated that a number of countries, including the European Union, are imposing new regulations and trade rules so that such industries are largely dependent on the use of energy from renewable sources, and it is important that Georgia has very significant potential for electricity generation from renewable energy sources.