Georgia

Country Profile

(.pdf file - 277 kB)

1. Overview

2. Policy and Incentives

3. Wind

4. Biomass

5. Solar

6. Geothermal

7. Hydroelectric

8. Links

9. References

10. Country Contacts

Georgia gained its independence in 1991 following the dissolution of the former Soviet Union.  Since its independence, the government has struggled to gain control of its entire, internationally recognized, borders as a result of existing Russian military bases, civil strife, and a chronic inability to collect tax revenues.  Despite these problems, Georgia has been able to achieve positive economic gains and stabilize inflation since 1995 with help from the IMF and World Bank. 

The most abundant natural resource in Georgia is the potential for hydroelectric power, with nearly all other energy sources coming from international pipelines transporting oil and gas to the west.  Electricity is generated almost entirely by hydroelectric facilities, with the balance from natural gas fired plants.  The installed capacity of these facilities is about 4.5 GW, however, due to aging equipment in need of rehabilitation, and a shortage of fuel supplies these plants only operate at about 40 percent of capacity.

Georgia Country Summary Table

The domestic generation and consumption of electricity declined sharply in the first years after independence, however, began to slowly rise throughout the later part of the decade (Figure 1).

Figure 1.  Georgia Electricity Market Trends (US DOE 2002a).

Power outages have been, and continue to be, a persistent problem for Georgia.  Outages have been a daily occurrence in most of the country and have impaired the development of businesses and the economy.  This problem has been due, in part, to the inefficient and aging transmission and distribution systems, it is estimated that 40% of the power generated is lost during transmission and distribution.  Further on January 2, 2002 an accident on a transmission line bringing power from Russia and Armenia brought transmission to a halt altogether. 

Some efforts have been made to move towards the privatization of the energy sector, however, progress has been slow with a weak economy and government.  Georgia made its first attempt at privatization with the T’bilisi distribution network in 1998.  However, the low collection rates have made the venture unprofitable.  In January 2002 the government made renewed commitment to improve the troubled electric sector.  In an IMF meeting in January, the government of Georgia agreed to work towards establishing a wholesale market, speed up efforts towards privatization, and draw up clear plans for repayment of internal and external energy debts. 

Georgia’s Electricity Market; 1992–2002 (Source: Deutsche Gesellschaft)

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There are currently no tariffs related directly to generation from renewable resources.  The existing law on electricity and gas does not include renewable energy sources explicitly. Goals for renewables have been developed, however.  Two presidential resolutions, from 1997 and 1998, describe the goals for renewable and “non-traditional source” energy.

Renewable energy generation equipment is exempt from value added tax, as are revenues from the production and installation of such equipment.  Land used for renewable energy generation is exempt from land tax.

Additionally, Georgia ratified the UN climate change agreements in 1994, established a National Climate Protection Program in 1996, and acceded to the Kyoto Protocol in 1999. Consequently the conditions for participating in measures within the framework of the Clean Development Mechanism are in place. Initial proposals for CDM projects in the wind sector are already on hand.

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Currently there is no operative wind energy capacity in Georgia, except for some small units (of about 6 kW each).  A country wide wind-atlas is available, where 4 main areas with annual average wind speeds of  over 6 m/s at 30 m height, 2 areas with 5 - 6 m/s were identified.

The ‘Masterplan of Wind Power Development of the USSR till 2010’ (1989), the technical potential of wind power in Georgia is estimated at 83 TWh a year. At 25 percent or greater capacity factor, this could result in over 2300 MW of installed capacity.

The technical wind energy resource potential estimated in above mentioned study is quite probably accurate.  Under these circumstances the technical wind energy resource potential of Georgia is good.

The most promising sites in Georgia are the high mountain zone of the Great Caucasus, The Kura river valley, The South-Georgian (Djavakhet) highland and the Southern part of the Black Sea coast.

Wind atlas of Georgia

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Georgia has considerable biomass resources potential. It is conditioned by its geographical position and climate favorable for growing forests and agricultural development. In some regions it is possible to have two yields per year. The use of biomass is considered an important source of power supply, especially in rural areas.

In 2000 the Georgian non-governmental organization Bioenergy devised a national program for developing biomass use in rural areas and quantified the biomass potential at over 600 MWth.  41 percent of Georgia’s territory is wooded. Firewood is very widely used, especially in rural regions. As a result of the collapse of the gas and district heating networks in the cities, the demand for firewood has soared there too.  The Georgian State Office for Statistics quotes the demand for firewood in 2001 as 8.6 million m3.

Georgia Biomass Resource Data

Biomass resource type	Total production	Production density
Percent of total land area covered by
Forests	48%
Shrublands, savanna, and grasslands	11%
Cropland and crop/natural vegetation mosaic	39%
Urban and built-up areas	1%
Sparse or barren vegetation; snow and ice	1%
Wetlands and water bodies	1%
Primary crop production, tonne	(avg. 1999-2001, tonne)	(tonne /1000 Ha)
Total primary crops (rank among COO)	6,106,847  (21)	876  (20)
Top 10 primary crops
Forage Products (misc)	4,066,667	583
Potatoes	375,120	54
Maize	312,134	45
Wheat	207,160	30
Grapes	203,333	29
Tomatoes	171,667	25
Cabbages	115,667	17
Apples	97,891	14
Watermelons	86,067	12
Oranges	42,667	6
Animal units, number	(number)	(number / 1000 Ha)
Cattle	1,086,500	156
Poultry	8,356,000	1,199
Pigs	388,490	56
Equivalent animal units	1,325,456	190
Annual roundwood production	(1996-98, 000 m3)	(m3 / Ha)
Total	NA	NA
Fuel	NA	NA
Industrial	NA	NA
Wood-based panels	10	1.4
	(1996-98, 000 metric tons)	(metric tons / Ha)
Paper and paperboard	NA	NA
Recovered paper	NA	NA

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Georgia has considerable potential for exploiting solar energy. Direct and global radiation reaches daily values of 4.5 to 7 kWh/m² at the most promising locations, corresponding to annual values of 830 kWh/m² to 1,670 kWh/m².  However, the use of solar energy in Georgia is currently very low. 

The solar energy resource potential is characterized by the data presented in tables below for two points, Tbilisi, the capital, and Sukhumi.

Monthly and annual total solar radiation incident on horizontal surface, MJ/m²