Georgian Economy Minister - country launching energy facilities “for first time in many years”

Georgian Economy Minister Levan Davitashvili on Monday said the country was launching new energy facilities into operation “for the first time in many years”, with a number of projects to be implemented to boost additional power capacity.

In his remarks to the media, Davitashvili said economic and environmental aspects were two “important factors” to be considered when making a decision on energy projects, and noted the Ministry had introduced a support mechanism in the economic part, which was “working well” and had received a “positive feedback” from both investors and the international community.

I think we have shown the international community how to implement state support mechanisms and support the sector in high competition conditions. Now we are announcing the second auction [for energy generation], and during this period an intensive dialogue is going on with the private sector, in order to reflect their remarks and opinions as much as possible and to consider the priorities of the energy sector”, he said.

The Minister added not all energy projects could be implemented “given social and environmental conditions”, despite support of the energy sector, and added while some projects might appear appropriate from an economic standpoint, they could face challenges because of environmental aspects.

Davitashvili also made comments on the Kamara hydropower plant project on Tergi River in northern Georgia and said communication over the project between the investor and local community was “still ongoing”, adding the plant would be built in case of receiving local support.

• Gov't presents new renewable energy support scheme

He noted “numerous communications and tight coordination” with the Renewable Energy Association, business sector and the United States Agency for International Development, as the donor agency, had taken place to ensure “consistent contact” with residents.

The official said the communication served to explain the role of energy independence and self-generation, adding the view on energy projects involving renewable energy had “radically changed”.