Energy

Ever since Georgia gained independence in 1991, energy has been among its vulnerable sides. However, active measures taken by the government brought significant improvements to the sector. The times of electricity and gas shortages are over as virtually all of the country is lit and supplied with natural gas. Georgia has also made notable progress towards energy security and independence as gas imports have been diversified and steps are being made to make the country self-sustainable in terms of electricity supply.

 

The construction of the strategic Baku-Tbilisi-Ceyhan oil and the South-Caucasus gas pipelines that transport the Caspian energy resources from Azerbaijan through Georgia to Turkey and further west has made a significant contribution to the energy security of Georgia. Significant investments into the energy sector both by the government and by private investors including the rehabilitation of hydro and thermal power plants, electricity transmission lines and distribution networks, gas and electricity metering systems and better regulation of the entire sector has made it more efficient and stable.

 

As the economy of Georgia continues its strong growth, the domestic consumption is expected to grow rapidly. Thus, the energy sector remains among top priorities for the government and it continues to further reform and improve the functioning of the sector to make it even more productive and sustainable. Just recently the Ministry of Energy announced the new investment program in Greenfield hydro power plants aimed at attracting more private investments into the development of hydro power plants in Georgia in order to take advantage of the country’s largely unutilized abundant water resources.

 

Over the past decade, the electricity sector of Georgia has gone under a significant transformation. The times of lasting blackouts and wide-scale electricity theft are over. Electricity is stably supplied to all the towns and villages throughout the country. Annual consumption of electricity in 2008 was approximately 2061 mln  kWh. 

 

The total installed generation capacity in Georgia is around 4,700 MW. The dominant generation asset is the Enguri HPP, which has an installed capacity of 1300 MW. In addition, there is a number of medium and small-scale HPPs, some generating electricity throughout the year and some only seasonally, mainly operating in the spring and summer months. Most HPPs are already privately owned, with the strategically sensitive Enguri HPP and Vardnili HPP (partially and fully located on the territory of the breakaway republic of Abkhazia, respectively) being notable exceptions.

 

 Electrucity Distribution Companies in Georgia

Georgia’s eleven oilfields with confirmed reserves of 28 million tons have yet to be explored. Larger oil reserves are assumed to exist. The oil potential of the Black Sea shelf is estimated at between 70 million and 1.3 billion barrels. Oil extraction and exploration works are conducted by both Georgian and foreign companies. In 2008, the totals of 52.800 tons of oil were produced in Georgia.