The obsession with hydropower may have obscured other green energy options for Georgia. For one thing, investment in hydro is not happening as fast as could have been expected a few years ago.
For the first time since 2007 Georgia is a net electricity importer. Last year the total electricity generated declined by 4% and a 1.3% increase in total internal demand was observed.
Can Georgia stimulate investment in electricity-intensive sectors by providing cheap electricity? To answer this question one has to first analyze the behavior of the wholesale electricity market during the past 3 years.
The possibility of lowering electricity and gas tariffs has become one of the top discussion topics across the country in the last few weeks.
Economics suggests that competition in a market brings more welfare to a country. Anti-monopoly agencies exist to create policies that limit market dominance and achieve competition.