Hydro power plant Investment In Georgia Country
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Hydro power plant Investment In Georgia Country Hydro Energy Investment

Hydro power plant Investment in Georgia Country is one of the best investments opportunity in Georgia Country. The Hydro Power Plant Georgia has much potential.

Since 2011, electricity consumption in Georgia has grown steadily in line with Georgian GDP. Georgian consumption reached 13.7 TWh in 2021. This consumption continues to grow in Georgia but in neighboring countries as well. This increasing worldwide demand for energy, particularly for crypto-mining, is a great opportunity to develop new hydropower plants in Georgia to satisfy this ever-increasing demand. Currently, only 30% of Georgia’s hydro resources potential is exploited.

Hydro Power Plant Georgia : A Huge Untapped Potential

Georgia is one of the top countries in water resources per capita, and 78% of Georgian electricity is generated from Hydro Power Plant. Georgia has more than 20,000 rivers, and almost 300 provide an excellent opportunity for hydropower generation. Most of the economically viable energy potential is not yet exploited (about 30 TWh). All these assets make Hydro power plant Investment in Georgia Country very attractive for foreign investors and industrials seeking renewable and cheap energy like crypto-miners.

Why Connoisseurs Think About Hydro power plant Investment In Georgia Country?

Renewable energy potential in Georgia gives a unique opportunity for electricity generation.

There is a great opportunity to develop new hydro power plants. 

Growth In Domestic Demand Requires An Increase In Electricity Production

Electricity demand in Georgia is growing faster than GDP growth, requiring a higher Hydropower plant production capacity.

# Reason 1 Of Hydro power plant Investment In Georgia Country: A Growing Domestic Demand

Since 2012, Georgia has been a net importer of electricity. Georgia’s generation capacity needs to meet domestic demand in the long term. Currently, Hydro Power Plant Georgia is on the rise. Without new Hydro Power Plants, Georgia’s generation capacity will not be sufficient to meet domestic demand in the long term, as per capita electricity consumption and the industrial sector continues to grow. The deficit in 2030 will reach more than 4 TWh. To cover the deficit and satisfy the domestic demand growth, new Hydro power plant Investment in Georgia Country are mandatory. 

# Reason 2 Of Hydro power plant Investment In Georgia Country: A Developed Grid Infrastructure

Georgia has a well-developed transmission grid infrastructure. The whole territory of Georgia is covered with over 4,300 km of high, medium, and low voltage lines and about 100 substations. 

New lines with HVDC back-to-back substations connecting Georgia with Turkey add significant transmission capacity to this major market and all neighboring countries.

The Georgian government continuously ensures network development, grid improvement, and new generation capacities seamless integration.  You can read more about the Georgian State Electrosystem’s webpage here.

Hydro power plant Investment In Georgia Country: The Key Points

Georgia is one of the top countries in terms of water resources per capita.

  • Today 78% of electricity is generated from Hydro Power Plants (Hydro power plant)
  • The new hydropower plants prioritize access to Turkey’s high-voltage line. Hydro Power Plant Georgia has priority access to Turkey’s new interconnection capacity. 
  • Generation and Export activities are exempted from Value Added Tax. 
  • Hydro Power Plant smaller than 13 MW does not need a license. 
  • Hydro Power Plant smaller than 2 MW does not need an Environmental Impact Assessment.
  • A low taxation system makes the energy investment in Georgia attractive for foreign investments.

Hydro power plant Investment In Georgia Country: A Liberalized And Deregulated Market

Renewable energy production projects are based on the Build-Own-Operate (BOO) principle.

  • The tariffs for the energy produced by these Hydro Power plants are not regulated. They can sell generated electricity to direct consumers without a third party. The investor is free to set the price of his energy sold on the open market.
  • HHP operators can sell generated electricity to direct consumers without a third party. 
  • A license for export is not required.
  • No fee is required for the connection to the transmission grid. 
  • Georgia is a member of The Energy Community, which means the Georgian internal energy market, rules, and principles will align with the EU market rules, leading to an integrated pan-European energy market.

 

Hydro power plant Investment In Georgia Country : A Huge Export Opportunity

With the abundance of high mountains and fast-flowing rivers, Georgia has a competitive advantage over its neighbors regarding generation cost. Countries surrounding Georgia either have higher electricity generation costs or electricity deficits. The most attractive export market is Turkey, one of the top countries in terms of increasing electricity demand. Turkey experiences an electricity shortage during the summer, while Georgia has a generation surplus.

Georgia is a member of The Energy Community, which means Georgian internal energy market rules and principles will align with the EU market rules, leading to an integrated pan-European energy market.

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