Georgia has developed an energy sector based largely on hydropower and fuelwood, in addition to imports of fossil fuels. It is also an important transit country for the region, with major oil and gas pipelines running across Georgian territory. Efforts are required to improve energy efficiency and capitalise on the country’s renewable energy potential. Georgia has made solid progress in the past decade, both in improving the security of its energy supply and in transitioning to a cleaner, more sustainable energy system. Although Georgia is still confronted with many challenges in its transition to a more secure, sustainable and affordable energy future, the government recognises most of them and is considering various measures to address them. Georgia is part of the EU4Energy Programme, an initiative focused on evidence-based policy making for the energy sector.


Key energy statistics

Key recommendations, 2020

  • Develop a solid long-term energy strategy and mechanisms to ensure correct implementation

    Establish clear targets in line with national socio-economic development goals and energy security objectives, based on solid analysis of supply-demand trends and alternative scenario models that apply reliable data and sound assumptions. Introduce monitoring mechanisms to track progress and adjust implementation schemes if needed. Address all types of energy, including fossil fuels and renewable energy (i.e. biomass/biofuels) in policy coverage.

  • Ensure that the energy strategy is in line with the country’s overall development policies and international commitment towards climate change

    Ensure clear links between the country’s energy strategy and its strategic climate change documents under the United Nations Framework Convention on Climate Change (UNFCCC), sustainable development strategies, economic, environmental and social policies, and national RD&D strategy.

  • Collect data to inform energy policy making

    Continue to improve the collection of national energy statistics to inform policy decisions.

  • Improve the country’s analytical capacities to support the development of the energy sector

    Raise the country’s analytical capacities by assembling qualified national experts and specialists for energy market and policy analysis to develop functional policies and industry regulations; and strengthening co operation with academia so that energy sector development is based on solid scientific evidence.

  • Develop the country’s legislative framework to support the development of the energy market and attract adequate investment

    Continue to work closely with parliament and other stakeholders to swiftly adopt primary legislation on new electricity and gas markets, to promote energy efficiency and renewable energy, and to give clear signals to all market participants and guide their investment decisions.

  • Further develop a free, liberalised and competitive energy market

    Develop effective secondary legislation that enables the energy market to function efficiently, , and gradually phase out the state’s selective interference in the energy sector so that wholesale energy trade and investment decisions can be made according to market principles.

  • Gradually phase out gas and electricity sector subsidies while protecting vulnerable customers

    Gradually phase out implicit subsidies and cross-subsidies in the electricity and gas sectors to enable much-needed investments in infrastructure, encourage energy efficiency and renewable energy development, and ensure savings and a more equitable distribution of public wealth. In parallel, targeted financial support should be refined to protect the most vulnerable customers.

  • Foster transparency and reinforce controls in the gas sector

    Introduce stronger checks and balances in the gas sector to address the lack of competition and encourage more transparency.

Georgia data explorer