In the first part of our article, we pointed out that electricity generation by hydropower is subject to strong seasonal variations. We argued that the seasonality of hydropower reduces the profitability of new plants, as they deliver the highest output in the time of the year when electricity is relatively cheap anyway, while they produce rather little when electricity is expensive.

Several years ago the (now former) Georgian government started successful reforms in the electricity sector and was eagerly looking forward to future projects.