Facing a projected 73% increase in electricity demand by 2030, the Georgian government is ramping up investments in renewable energy to avoid a potential energy shortfall and reduce reliance on electricity imports.

According to official data, Georgia’s electricity consumption rose by 3.5% in the first four months of 2025, reaching 4.9 billion kilowatt-hours (kWh). However, domestic electricity production declined by nearly 10% during the same period, signaling an urgent need to expand local generation capacity.

Hydropower continues to dominate Georgia’s energy mix, supplying 2.9 billion kWh from January to April 2025, followed by thermal power plants with 965.63 million kWh. The discrepancy between growing demand and falling production has prompted the government to intensify its focus on renewable energy sources such as wind, solar, and hydro.

Strategic Projects and Investment Scheme

One of the country’s landmark renewable energy projects is the Kartli wind farm near Gori in eastern Georgia. Operational since 2016 with a 20 MW capacity, the wind farm produced 25.54 million kWh in the first four months of 2025, marking a 6.9% year-on-year decrease.

In response to growing energy concerns, the government has launched a Renewable Energy Development Scheme aimed at attracting USD 3–4 billion in investment over the next two to three years. The plan includes a series of competitive auctions to develop new wind, solar, and hydro plants with a total capacity of 1,500 MW.

Winning developers will be backed by a 15-year Contract for Difference (CfD), offering income stability and making Georgia a more attractive destination for energy investors.

Path to Energy Security and Sustainability

Government officials say that increasing the share of domestically produced clean energy is vital for long-term energy security and environmental sustainability. If fully realized, the initiative could transform Georgia into a green energy hub in the Caucasus, significantly cutting carbon emissions while bolstering economic growth.

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