Economy Minister says Gov’t has introduced changes to support renewable energy project scheme, attract investment

Georgian Economy Minister Levan Davitashvili on Monday said the Government had introduced changes to its support scheme for renewable energy projects with the aim of expediting its operation and attracting investment in renewable resources.

The Minister said the new support mechanism, developed in collaboration with the International Monetary Fund and the World Bank, involved fixed price support to mitigate commercial risks in energy project implementations.

This approach is expected to encourage more private investors and developers to engage in renewable energy projects, he added.

The revised support scheme will allow the Government to offer energy projects to potential investors at fixed prices determined through auctions.

We will be able to support projects more quickly and flexibly this year. Projects that took part in the auction but could not be accommodated within the capacity quota will now have the option to negotiate directly with the Ministry to receive a fixed price support scheme, not exceeding the median price for different project types”, Davitashvili said.

If they express their intent to proceed with the projects, the state will provide support. This change is expected to expedite the process significantly and foster investments in renewable energy resources”, he added.

The Minister also addressed the topic of projects that had been unable to proceed, stating the Government had established “clear mechanisms” and “increased guarantees” to support qualified developers and investments.

Davitashvili expressed confidence “many” power plants would become operational this year in the country, with “active investments” being made. He also emphasised 2025-26 were expected to be particularly active in terms of energy initiatives.