On October 6th, ISET-PI research fellow, Levan Pavlenishvili of the Energy and Environment Policy Research Center, participated in a panel discussion organized by World Experience Georgia (WEG) at Ligamus Book shop of Ilia State University. The panel discussed Discussion subsidies in the energy sector and it was attended by representatives of academia and other sector stakeholders including WEG representatives Mr. Murman Margvelashvili and Mr. Giorgi Mukhigulishvili. Panelists started with a review of international practices of subsidies in energy sector detailing the 30 main branches and 500 various types of subsidies in energy sector. Furthermore, Mr. Murman Margvelashvili presented types of subsidies used in power generation and consumption sectors, as well as in other energy sources.
Afterwards, Levan discussed economic effects of subsidies, both from Macroeconomic and Microeconomic angles. He mentioned the main reasons why subsidies are given, such as promotion of renewables and political motives for consumption subsidies. He also reviewed several cases were subsidies are especially problematic in Georgia, such as cross-subsidization in water supply sector. Levan also underlined a need for a detailed research on energy subsidies and problems of data transparency in energy sector.