Located between Europe and Asia, Georgia is an impressive country with a rich culture and impressive landscape. On top of that the geographic location and the gradient created by the mighty Caucasus Mountains offer perfect conditions for hydropower plants.
In December 2019, Georgia passed the Law to promote the generation and use of energy from renewable sources. The introduction of a market-based subsidy system for renewable energies as well as the implementation of further articles of Directive 2009/28 / EC is stated by the law. Georgia requires the adoption of several laws, some of which were passed in 2020, including a rule on accounting for energy received from heat pumps, a rule to develop minimum requirements for submitting national renewable energy action plans and a rule to normalize the balancing of electricity from hydro- and wind power. In July 2020, the Georgian government passed another law that sets a feed-in premium (FiP) of up to 1.5 USc / kWh for hydropower plants with an installed capacity of more than 5 MW. According to the law, producers are obliged to sell electricity on the market and are entitled to a FiP if the market price is less than 5.5 USc / kWh. In such a case, the FiP amount is the difference between 5.5 USc / kWh and the market price, but not more than 1.5 USc / kWh. An EU4Energy Governance project is developing a template for a contractual agreement for this mechanism.
The Georgian renewable electricity portfolio is mainly based on hydropower. Without a binding target for 2020, however, the country is making efforts to diversify production and to promote the use of renewable energies.
