Georgia
Energy system of Georgia
Georgia has made solid progress in the past decade, both in improving the security of its energy supply and in transitioning to a cleaner, more sustainable energy system. Although Georgia is still confronted with many challenges in its transition to a more secure, sustainable and affordable energy future, the government recognises most of them and is considering various measures to address them. Georgia is part of the EU4Energy Programme, an initiative focused on evidence-based policy making for the energy sector.
Policies
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Key recommendations
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Establish clear targets in line with national socio-economic development goals and energy security objectives, based on solid analysis of supply-demand trends and alternative scenario models that apply reliable data and sound assumptions. Introduce monitoring mechanisms to track progress and adjust implementation schemes if needed. Address all types of energy, including fossil fuels and renewable energy (i.e. biomass/biofuels) in policy coverage.
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Ensure clear links between the country’s energy strategy and its strategic climate change documents under the United Nations Framework Convention on Climate Change (UNFCCC), sustainable development strategies, economic, environmental and social policies, and national RD&D strategy.
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Continue to improve the collection of national energy statistics to inform policy decisions.
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Raise the country’s analytical capacities by assembling qualified national experts and specialists for energy market and policy analysis to develop functional policies and industry regulations; and strengthening co operation with academia so that energy sector development is based on solid scientific evidence.
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Continue to work closely with parliament and other stakeholders to swiftly adopt primary legislation on new electricity and gas markets, to promote energy efficiency and renewable energy, and to give clear signals to all market participants and guide their investment decisions.
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Develop effective secondary legislation that enables the energy market to function efficiently, , and gradually phase out the state’s selective interference in the energy sector so that wholesale energy trade and investment decisions can be made according to market principles.
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Gradually phase out implicit subsidies and cross-subsidies in the electricity and gas sectors to enable much-needed investments in infrastructure, encourage energy efficiency and renewable energy development, and ensure savings and a more equitable distribution of public wealth. In parallel, targeted financial support should be refined to protect the most vulnerable customers.
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Introduce stronger checks and balances in the gas sector to address the lack of competition and encourage more transparency.