Khudoni, Georgia’s largest hydropower investment project, is again making the headlines. According to a recent statement by Georgia’s Minister of Energy and Natural Resources Kakha Kaladze, the project will be put on hold at least until March 1, 2014.
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.
On February 15, 2013, Professor Hans Wiesmeth, vice-president of the Saxon Academy of Sciences, delivered a presentation titled “Integrated Environmental Policies: Supporting the Sustainable Development of Georgia” to the academic community at the National Science Academy of Georgia. The event was initiated and supported by ISET.
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.