Page 36 - Caucasus Outlook 2025

7.0 Energy & Power 7.1 Energy & Power – Georgia
In the first nine months of 2024, a total of 11.8 TWh of electricity was supplied to the grid. Of this amount, 11.3 TWh was generated domestically, while 0.5 TWh derived from imports. From the total supply, 10.3 TWh was consumed within the country at the wholesale level, 1.0 TWh was exported, and 0.5 TWh was lost during high-voltage transmission.
Electricity supply saw a boost in hydro generation, which rose by 7.2% y/y to reach 9.5 TWh. This increase was driven by ample rainfall and the effective management of regulating hydropower plants (HPPs). The growth in hydropower production, combined with reduced exports, resulted in lower output from thermal power plants (TPPs) and kept import levels minimal.
Domestic electricity consumption resumed growth, mainly due to the recovery of energy-intensive industries such as crypto-mining and metallurgy. In the Svaneti region, the district administration has urged residents to turn off bitcoin mining equipment, warning that the growing pressure on the area’s electricity supply may soon lead to widespread power outages across the region.
Overall, domestic consumption increased by 5.4% y/y, reaching 10.4 TWh in the nine-month period.
Electricity exports experienced a decline, with exported volumes falling to 1.0 TWh, a decrease of 28.8% y/y. Export prices also dropped by 28.1% to US 4.7 cents per kWh. Consequently, export revenues were halved, amounting to $49mn.
Despite the challenges, Georgia maintained its position as a net exporter of electricity during this period, with net exports totalling 0.6 TWh, equivalent to $45.2mn.
In October, the Khobi 2 HPP was inaugurated in Georgia’s western Samegrelo region. The facility, developed by Georgian Investing Group Energy, has an installed capacity of 44.5 MW and is projected to produce 202mn kWh of electricity annually.
The Khobi 2 HPP is among the top five hydropower projects built in Georgia since independence in the early 1990s. The first phase of the project required an investment of over GEL250mn ($91.58mn).
The government aims to develop the country’s renewable energy potential, particularly through hydroelectric power. With more than 26,000 mountain rivers, Georgia has significant untapped resources for generating renewable energy.
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